FAIRFIELD, Conn. – May 20, 2013 – GE [NYSE: GE] announced today that the Board of Directors of GE Capital Corporation (GECC) had approved plans for GECC to pay $6.5 billion in dividends in 2013 to GE. Earnings-dividend payments, which are subject to GECC Board and GE Board Risk Committee approvals, are planned at 30% of GECC’s total 2013 earnings. GECC paid the first-quarter earnings-dividend of $447 million to GE on April 19, 2013. In addition, GECC plans $4.5 billion in special dividends to GE in 2013, subject to the same approvals.
“This announcement is consistent with our goal to reduce the overall size of GE Capital and for it to return significant cash to GE,” said GE Chairman and CEO Jeff Immelt. In the first quarter of 2013, GE Capital grew its earnings 9% while ENI (excluding cash and equivalents) declined 7% to $402 billion. GECC ended the quarter with $68 billion in cash, and its Tier 1 common ratio under Basel 1 improved by 65 basis points to 11.1%.
Under its balanced capital allocation plan of investing for its long-term growth, maintaining an attractive dividend pay-out and repurchasing stock, GE plans to return $18 billion cash to its shareholders in 2013, including repurchase of $10 billion of stock.
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Caution Concerning Forward-Looking Statements:
This document contains “forward-looking statements” – that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance and financial condition, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “see,” or “will.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties that could cause our actual results to be materially different than those expressed in our forward-looking statements include: current economic and financial conditions, including volatility in interest and exchange rates, commodity and equity prices and the value of financial assets; potential market disruptions or other impacts arising in the United States or Europe from developments in sovereign debt situations; the impact of conditions in the financial and credit markets on the availability and cost of General Electric Capital Corporation’s (GECC) funding and on our ability to reduce GECC’s asset levels as planned; the impact of conditions in the housing market and unemployment rates on the level of commercial and consumer credit defaults; changes in Japanese consumer behavior that may affect our estimates of liability for excess interest refund claims (GE Money Japan); pending and future mortgage securitization claims and litigation in connection with WMC, which may affect our estimates of liability, including possible loss estimates; our ability to maintain our current credit rating and the impact on our funding costs and competitive position if we do not do so; the adequacy of our cash flows and earnings and other conditions, which may affect our ability to pay our quarterly dividend at the planned level or to repurchase shares at planned levels; GECC’s ability to pay dividends to GE at the planned level; our ability to convert pre-order commitments into orders; the level of demand and financial performance of the major industries we serve, including, without limitation, air and rail transportation, energy generation, real estate and healthcare; the impact of regulation and regulatory, investigative and legal proceedings and legal compliance risks, including the impact of financial services regulation; our capital allocation plans, as such plans may change and affect planned share repurchases and strategic actions, including acquisitions, joint ventures and dispositions; our success in completing announced transactions and integrating acquired businesses; the impact of potential information technology or data security breaches; and numerous other matters of national, regional and global scale, including those of a political, economic, business and competitive nature. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.
Trevor Schauenberg, 203.373.2424 (office)
Seth Martin, 203.572.3567 (cell)