- The tough comparison is because last year the company recognized revenue on delivery to recognizing revenue on shipment.
- Revenue of $3.9 billion was flat and segment profit of $528 million was reported down 17%.

- The revenue recognition change made last year added $254 million of revenue to the first quarter of 2007 and $117 million of op profit, basically those shipments that were recorded as revenue in the fourth quarter of 2006, because the company had to go to delivery, rolled into the first quarter of 2007. The business had no operating activity associated with that. It was just an accounting move.

- The orders were up 2%, service was up 8%, equipment was down 1%. The company continues to see tough equipment market. CT was down 15%, MR was up 8%, x-ray was down 5% and in Americas, and the Americas DI was down 13%. The company had backlog coming into 2007 and the international was up 5%.
- Services backlog of $2.1 billion, was up 7%. The company had a great long-term service agreement win with HCA, five-year service contract on both DI and Biomed, so the company had good service performance.

The bright side of healthcare continues to be global.

- The global equipment revenues were strong. DI internationally was up 8%, clinical systems internationally was up 13%, life sciences, which is bigger in Europe, was up 24% and services was up 9%.
- Miss in healthcare was driven by the challenging U.S. environment, partially offset by continued global growth.
- Industrial had a tough quarter. Revenue was up 1% and segment profit down 16%. The U.S. appliance industry core was down 10% in units, total was down 18%. Core was down 9% in January and February and then it went down 11% in March.
- The partial offset continued to be global growth in both the rest of CNI and enterprise solutions. U.S. orders were down 5% but Asia and Latin America were up over 20%.

Enterprise solutions had good quarter.

Revenue was up 8%, segment profit up 15%, driven by the growth seen in sensing and inspection and digital energy, and that should continue. However, that didn’t offset the pressure in commercial, consumer, and industrial. The company responded to the inflationary inputs it has on raw materials. The company raised price. The company did have positive price. The company lost about a point a share and didn’t offset all the inflation.

- Base costs were down, salary employees are down and the company is doing a lot of restructuring at CNI to deal with this environment.
- NBC delivered their sixth quarter in a row of positive earnings growth. Revenues of $3.6 billion, was up 3% and segment profit of $712 million was up 3%.
- The network and local stations were basically flat in revenue but up 3% in op profit. The primetime is on track to finish number two. Prime ratings were a 2.8, within 3% of last year.

- NBCU produced content really helped. The company had strong DVD sales from product like Heroes and House and 30 Rock. The company saw local ad spending decrease of about 11%, and this is an indicator that it is tough out there.
- The real bright spot and strength here continues to be in entertainment and information cable.

- Film had strong quarter with nice results in the award shows. Op profit was up double-digit, principally driven by this year’s DVDs. American Gangster and Atonement had good results versus easier comparisons last year, and for the parks the company saw good attendance and spending in January and February but lower than expected in March.

The company is taking on an additional $600 million of base cost, another 3% reduction on the base cost balance here, so it is taking a lot of actions to try to deal with some of the environment it sees that is tougher than thought.

The leverage loan market fell off. The large cap transactions fell off in the fourth quarter but there has been a lot of mid-market activity that has continued and that has slowed down and the U.S. CapEx is also slowing, which does impact some of flow businesses.

- The company did $35 billion of long-term debt. Demand for commercial paper is strong. Spreads have come down. The CDS swap rates have come back into more normal relationships.
- New business margins are improving. Commercial finance volumes were at higher spreads.

- The credit is solid, as expected. The commercial finance 30-day delinquencies are 1.36%. It is up 10 basis points from a year ago. These are at historic low levels, so the quality of the portfolio continues to be robust.
- GE Money delinquencies are in line with the plan.

The company was on track for a $50 billion redeployment goal.

- The company closed the Merrill Lynch capital deal. The company has got an LOI on European commercial platforms in the commercial business in Italy. The company sold the corporate card and got that done with American Express. The company has got an LOI on some select European GE Money dispositions where it doesn’t have scale and it is appropriate to get them with a bigger player.
- The company is on track for selling the U.S. PLCC business and on track for the final exit in Japan.
- The core business remains solid and the investments or redeployment are going to be more positive going forward.

- Miss was in commercial finance. The company had $270 million of negative marks in impairments versus plan and they basically were in three categories. They are in public equities, they are in a retained interest valuations from things securitized where the company still owns the equity tranche, and they are in warehouse marks.
- The company had lower gains than planned. Over $100 million of gains in real estate pushed out of the quarter and other asset sales that the company is working didn’t get completed.

- The asset quality is stable. The company has lots of attractive origination opportunities and both GE Money and the verticals met their estimates. The company still earned over $2.5 billion of net income in financial services businesses at a 20% return on equity.

In commercial finance, it was challenging quarter.

- The company continues to see strong asset growth. Global originations are good. Assets reported were up 27%. It is up 19% except ex. Revenues were up 7% and the segment profit of $1.158 billion was down 20%.
- Real estate earnings were down 16% driven by lower gains on property sales. The company did sell $1.7 billion of assets. The company was working on and forecasting internally another $900 million or so of sales that didn’t happen.