Indigo, magenta, color of ghee,
An Indian summer boiling where he sat
Put ours to shame. Six decades in the vat
Had turned his fingers emerald. Ah me.
-- "Whitebeard on Videotape," James Merrill
On Friday, April 13, multimarket conglomerate General Electric
- Management says that its long-term goal is at least 10% EPS growth, a goal that was met on a continuing-operations basis. Operating cash flow kept up that pace, too, which is always a good sign.
- Impressive gains in the infrastructure and commercial finance departments more than made up for weakness in consumer finances (the housing bubble rears its ugly head) and in the industrial segment, where plastics operations once again dragged down profits. And did you see how NBC Universal grew profits on lower revenues?
- All in all, diversity is GE's friend. One market goes down -- another goes up. The company is also more than willing to adjust its holdings and operations to current market conditions. It's Otter Tail
(NASDAQ:OTTR) on steroids; 3M(NYSE:MMM) on a triple espresso.
(Figures in millions -- lots of them -- except per-share data)
Income Statement Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$40,195 |
$38,029 |
5.7% |
|
Net Profit |
$4,508 |
$4,440 |
1.5% |
|
EPS |
$0.44 |
$0.42 |
4.8% |
|
Diluted Shares |
10317 |
10480 |
(1.6%) |
Get back to basics with the income statement.
Margin Checkup
|
Q1 2007 |
Q1 2006 |
Change* |
|
|---|---|---|---|
|
Operating Margin |
33.3% |
29.8% |
3.5 |
|
Net Margin |
11.2% |
11.7% |
(0.5) |
Margins are the earnings engine.
Segment Close-up
|
Revenues |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Infrastructure |
$11,983 |
$10,152 |
18.0% |
|
Commercial Finance |
$6,283 |
$5,484 |
14.6% |
|
GE Money |
$5,807 |
$5,090 |
14.1% |
|
Healthcare |
$3,641 |
$3,659 |
(0.5%) |
|
NBC Universal |
$3,484 |
$4,482 |
(22.3%) |
|
Industrial |
$7,428 |
$8,140 |
(8.7%) |
|
Operating Profits |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Infrastructure |
$2,183 |
$1,703 |
28.2% |
|
Commercial Finance |
$1,421 |
$1,174 |
21.0% |
|
GE Money |
$851 |
$836 |
1.8% |
|
Health Care |
$520 |
$496 |
4.8% |
|
NBC Universal |
$691 |
$654 |
5.7% |
|
Industrial |
$481 |
$600 |
(19.8%) |
Talking about GE as a monolithic entity is like reporting on the global economy in a single limerick. You really need some detail here.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$64,400 |
$53,600 |
20.1% |
|
Accounts Rec. |
$12,700 |
$12,600 |
0.8% |
|
Inventory |
$13,100 |
$11,400 |
14.9% |
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Long-Term Debt |
$450,100 |
$376,200 |
19.6% |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$7,400 |
$6,700 |
10.4% |
Free cash flow is a Fool's best friend. We just don't have that level of detail available today.
For related Foolishness:
- GE: Making Money, Making a Difference
- Steven Mallas Loves General Electric
- Foolish Forecast: Ode to GE
- Foolish Fundamentals: Return on Invested Capital
Otter Tail is a Motley Fool Hidden Gems recommendation, and 3M is an Inside Value pick. You can learn more with a glittering gamut of free 30-day trials.
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
At the time of publication, Fool contributor Anders Bylund had no position in any company mentioned, but he is still honoring National Poetry Month. Fool rules are here.
