GE 2015 Annual Report Download - page 73

MD&A SEGMENT OPERATIONS | OIL & GAS
GE 2015 FORM 10-K 45
FINANCIAL OVERVIEW
(Dollars in billions)
SEGMENT REVENUES SEGMENT PROFIT SEGMENT PROFIT MARGIN
SEGMENT REVENUES & PROFIT WALK: COMMENTARY:
2015 ± 2014 2015 ± 2014
Segment revenues down $2.6 billion (14%);
Segment profit down $0.3 billion (12%) as a result of:
x The decrease in revenues was primarily due to the impact of a
stronger U.S. dollar and lower volume at Surface and SS&D,
driven by lower oil prices. Organic revenues* were down 5%
compared with prior year.
x The decrease in profit was primarily due to the impact of a
stronger U.S. dollar and lower volume at Surface and SS&D,
driven by lower oil prices, partially offset by the effects of
deflation and cost productivity. Organic profit* increased 1%
compared with prior year.
Revenues Profit
2014 $ 19.1 $ 2.8
Volume (1.0) (0.1)
Price - -
Foreign Exchange (1.6) (0.3)
(Inflation)/Deflation N/A 0.1
Mix N/A -
Productivity N/A 0.1
Other - -
2015 $ 16.5 $ 2.4
2014 ± 2013 2014 ± 2013
Segment revenues up $1.7 billion (10%);
Segment profit up $0.4 billion (17%) as a result of:
x The increase in revenues was primarily due to higher volume,
mainly driven by higher equipment sales at Surface, SS&D
and TMS, as well as the $0.3 billion net impact of acquisitions,
primarily Lufkin, and dispositions, primarily Wayne. These
increases were partially offset by the impact of a stronger U.S.
dollar.
x The increase in profit was primarily due to higher productivity,
higher volume and higher prices. These increases were
partially offset by negative business mix.
Revenues Profit
2013 $ 17.3 $ 2.4
Volume 1.7 0.2
Price 0.1 0.1
Foreign Exchange (0.1) -
(Inflation)/Deflation N/A -
Mix N/A (0.2)
Productivity N/A 0.3
Other - -
2014 $ 19.1 $ 2.8
*Non-GAAP Financial Measure
Equipment
Services
GE 2015 FORM 10-K 45