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Released January 26, 2015 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Power and manufacturing leader General Electric Company (NYSE:GE) (GE) (Fairfield, Connecticut) benefited from a recovering U.S. economy in 2014, as locomotive and turbine sales drove a surge in orders that substantially boosted the company's backlog. Net earnings were reported to be $15.23 billion, a 16.66% increase from 2013.
Industrial Info is tracking more than $12 billion in active projects involving GE, including Comision Federal de Electricidad's $480 million, natural gas-fired, combined-cycle power plant in La Jovita, Baja California, Mexico. The station will use a 184.4-megawatt (MW) GE MS7001FB combustion turbine generator set, with an attached heat-recovery steam generator (HRSG) that will drive a 95.6-MW GE (A-Series) steam turbine generator set. General Electric Mexico SA de CV, a subsidiary, is serving as subcontractor.
Industrial Info also is tracking the development of Akuo Energy's (Paris, France) $400 million, two-phase windfarm project in Rocksprings, Texas. The windfarm will comprise 112 GE 1.7-103 wind turbine generators, for a total output of about 180 MW. General Electric Power Systems (Schenectady, New York) is serving as technology provider. The $200 million first phase is expected to be completed in December, and the $200 million second phase in August 2016.
Total revenues stood at $148.69 billion, a 1.74% increase from 2013. During the fourth quarter, orders increased 3% from the same period in 2013, brining GE's backlog to $261 billion, with services accounting for $189 billion and equipment $72 billion. The U.S. market showed some of the strongest growth, at 18%. In contrast, orders from Europe fell 9%, while those from growth markets fell 7%.
Among GE's most successful products in 2014 were the Tier 4 Locomotive, for which the company received 1,355 orders; the H-class turbine, for which the Power & Water segment has a backlog of 15 units, with another 30 set to be sold across six countries; and the CFM International LEAP turbofan engine, which is a bestseller in the aviation industry. The U.S. Healthcare segment benefited from the introduction of two products: the Revolution CT scanner and the Voluson women's health ultrasound. U.S. Healthcare orders were up 9%, including a 17% jump for equipment.
GE also signed a $1 billion service agreement with Cheniere Energy Incorporated (Houston, Texas) to supply the Sabine Pass LNG Export Terminal in Cameron, Louisiana. The Power & Water segment agreed to supply Egypt with advanced gas turbines to assist in developing 2.7 gigawatts of power generation.
"Growth market revenues expanded 7% in 2014, with five of nine regions growing," said Jeff Immelt, the chairman and chief executive officer of GE, in a conference call. "Life sciences [segment] grew earnings 15% during the year; water hit a 10% operating rate during the quarter, with 26% earnings growth for the year; and we won the Boeing 777X onboard computing system. This is a huge win that positions GE as a Tier 1 avionics supplier."
GE's $17 billion plan to acquire the energy-related assets of Alstom S.A. (Levallois-Perret, France), announced late last year, recently became more expensive after GE agreed to additional contracts that will cost about 250 million euros ($282 million). The acquisition is part of GE's long-term plan to shift focus to its industrial businesses, through which is hopes to achieve 75% of its earnings by 2016.
"We originally agreed to a five-year lease of the Alstom brand, and we extended that to 25 years," said Jeff Bornstein, the senior vice president and chief financial officer of GE. Bornstein said that GE also took advantage of some parts of the deal that were open to negotiations after the signing, including adjustments to Alstom's legal entities for tax and other purposes.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
Industrial Info is tracking more than $12 billion in active projects involving GE, including Comision Federal de Electricidad's $480 million, natural gas-fired, combined-cycle power plant in La Jovita, Baja California, Mexico. The station will use a 184.4-megawatt (MW) GE MS7001FB combustion turbine generator set, with an attached heat-recovery steam generator (HRSG) that will drive a 95.6-MW GE (A-Series) steam turbine generator set. General Electric Mexico SA de CV, a subsidiary, is serving as subcontractor.
Industrial Info also is tracking the development of Akuo Energy's (Paris, France) $400 million, two-phase windfarm project in Rocksprings, Texas. The windfarm will comprise 112 GE 1.7-103 wind turbine generators, for a total output of about 180 MW. General Electric Power Systems (Schenectady, New York) is serving as technology provider. The $200 million first phase is expected to be completed in December, and the $200 million second phase in August 2016.
Total revenues stood at $148.69 billion, a 1.74% increase from 2013. During the fourth quarter, orders increased 3% from the same period in 2013, brining GE's backlog to $261 billion, with services accounting for $189 billion and equipment $72 billion. The U.S. market showed some of the strongest growth, at 18%. In contrast, orders from Europe fell 9%, while those from growth markets fell 7%.
Among GE's most successful products in 2014 were the Tier 4 Locomotive, for which the company received 1,355 orders; the H-class turbine, for which the Power & Water segment has a backlog of 15 units, with another 30 set to be sold across six countries; and the CFM International LEAP turbofan engine, which is a bestseller in the aviation industry. The U.S. Healthcare segment benefited from the introduction of two products: the Revolution CT scanner and the Voluson women's health ultrasound. U.S. Healthcare orders were up 9%, including a 17% jump for equipment.
GE also signed a $1 billion service agreement with Cheniere Energy Incorporated (Houston, Texas) to supply the Sabine Pass LNG Export Terminal in Cameron, Louisiana. The Power & Water segment agreed to supply Egypt with advanced gas turbines to assist in developing 2.7 gigawatts of power generation.
"Growth market revenues expanded 7% in 2014, with five of nine regions growing," said Jeff Immelt, the chairman and chief executive officer of GE, in a conference call. "Life sciences [segment] grew earnings 15% during the year; water hit a 10% operating rate during the quarter, with 26% earnings growth for the year; and we won the Boeing 777X onboard computing system. This is a huge win that positions GE as a Tier 1 avionics supplier."
GE's $17 billion plan to acquire the energy-related assets of Alstom S.A. (Levallois-Perret, France), announced late last year, recently became more expensive after GE agreed to additional contracts that will cost about 250 million euros ($282 million). The acquisition is part of GE's long-term plan to shift focus to its industrial businesses, through which is hopes to achieve 75% of its earnings by 2016.
"We originally agreed to a five-year lease of the Alstom brand, and we extended that to 25 years," said Jeff Bornstein, the senior vice president and chief financial officer of GE. Bornstein said that GE also took advantage of some parts of the deal that were open to negotiations after the signing, including adjustments to Alstom's legal entities for tax and other purposes.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
