The global economic reset of 2008 has had lasting impact GE's net income, as companies and consumers around the world work to rebuild their economies. Meanwhile cash flow from operations continues to be solid while operating profit has consistently been in excess of 15% for the entire decade.
GE's portfolio has transformed to meet the changing global business environment. In the past decade, GE has refocused on core competencies, simplifying our portfolio while reducing risk. We are investing in growth opportunities and value creation in established and emerging markets.
GE services have grown to represent a significant majority of industrial earnings, growing from 30% in 2000 to a little over 70% in 2010. These services not only boost profitability for GE, they improve productivity for our customers and return for our investors.
Annual investment in Research and Development has more than doubled over the past decade from $1.9 billion in 2001 to $3.9 billion in 2010. This level of investment represents a rate of growth 2-3x the pace of inflation.
When ecomagination was launched in 2005, we set a goal of $1.5 annual investment in R&D by 2010. We reached it a year early. Revenues kept pace, while the number of ecomagination products grew from 18 in 2005 to 90 in 2009. Meanwhile, GE has cut its GHG emissions by nearly a quarter in the past four years alone.
“Repositioning GE in volatile times has demanded patience from our long-term investors. However, today we earn more money than we did when the stock traded at an all-time high.”- Jeff Immelt Letter to Shareholders 2010 Annual Report
GE’s cumulative dividend was $8.50/share over the 10 year period. This strong dividend yield consistently outperformed the S&P.
Globally, GE has increased its patent filings (for priority, or 'first' patent filings) 48% over the past decade. The past few years have added richly to GE's portfolio of international patents, with greater than 50% growth in the number of patent filings in some key markets outside the US since 2007. In 2010, GE filed 2,763 patents.
GE ranks third in cumulative earnings over the past decade with an impressive $160.7 billion, the highest for a non-oil company, and over 40% more for the decade than Microsoft.
While GE revenues from developed countries nearly doubled in the past decade, developing countries demonstrated their profound capacity for growth, contributing over 3 times the amount in 2010 that they did in 2001. Overall, revenues from outside the US grew from representing.