General Electric Co Inc, USA

August 2006

Pump Industry Analyst

Gardner Denver Inc, USA

General Electric Co Inc, USA

Key Figures (US$ million) Three months ended 30.6 2006

2005

Revenues Of Which: Fluid Transfer Products

416.3

250.3

90.9

53.0

Operating Earnings Of Which: Fluid Transfer Products

59.1

23.6

25.3

7.6

Net Income

33.0

14.7

Orders Of Which: Fluid Transfer Products

454.7

273.7

110.4

68.4

Backlog Of Which: Fluid Transfer Products

536.0

295.8

193.1

96.8

2006

2005

Revenues Of Which: Fluid Transfer Products

815.6

489.2

171.8

102.7

Operating Earnings Of Which: Fluid Transfer Products

113.5

41.6

43.9

12.9

63.5

25.0

876.5

570.3

198.5

147.1

Orders Of Which: Fluid Transfer Products

36 539

4156 11 332

3768 10 221

Costs and Expenses

34 006

31 170

Segment Profit

6450

5809

Net Earnings

4852

4647

2006

2005

Revenues Of Which: Healthcare Infrastructure

77 721

70 889

7815 21 484

7089 19 595

Costs and Expenses

66 874

61 176

Segment Profit

11 913

10 654

9157

8612

Net Earnings

COMMENT Gardner Denver Inc’s Fluid Transfer Products segment saw second quarter 2006 revenues increase 71% on 2005 levels, primarily due to stronger demand for drilling and well servicing pumps, manufacturing and supply chain improvements, incremental shipments as a result of increased outsourcing and price increases. “Demand for oil and natural gas-related products continues to be as strong as I have seen in more than 20 years,” said Ross Centanni, Gardner

2005

39 900

Six months ended 30.6

Six months ended 30.6

Net Income

2006 Revenues Of Which: Healthcare Infrastructure

Dever chairman, president and CEO. “Demand for our drilling and well stimulation pumps also remains strong and, given the extended visibility we have in this side of our business, we expect demand to remain strong for these products at least through 2007,” said Centanni. The 55% organic order growth for fluid transfer products was driven by demand for oil and natural gas-related products that are expected to ship during the first half of 2007. ■

COMMENT General Electric (GE) has posted record second-quarter 2006 earnings from continuing operations of US$4.9 billion, up 11% from secondquarter 2005. Revenues from continuing operations were also a record US$39.9 billion, up 9% from last year's second quarter. GE’s Healthcare unit, home to much of its filtration operations, saw revenues for the quarter increase 10% to US$4156 million. Its Infrastructure unit, with its growing water processing capabilities, enjoyed a 11% increase in sales to US$11 332 million “We continue to execute our strategy,” said GE chairman and CEO Jeff Immelt. “We are generating consistently strong earnings growth, with earnings per

share up 15%. This is our sixth straight quarter of organic revenue growth that meets our goal of two to three times GDP. This consistent performance demonstrates the quality of our businesses and the excellence of our execution,” added Immelt. “We see this string continuing. Total company orders were up 17% for the quarter, showing strong future demand for our products and services. Orders for equipment increased 33%, including a 59% surge in Infrastructure orders, while services orders increased 13%,” added Immelt. Immelt said that for the third quarter GE expected double-digit segment profit growth in five of its six business segments. ■

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COMPANY WATCH

Key Figures (US$ million) Second quarter ended 30.6