GEC ANNOUNCES GOOD RESULTS DURING ITS YEAR OF TRANSITION (98/99).

• Position: Company Financial Information

Britain's General Electric Co (GEC), which has undergone a period of profound transformation, announced on June 10 a pre-tax profit of GBP1.504 billion (USD2.4 billion, Euro 2.3 billion) for the financial year to April, compared with 879 million the previous year. Excluding extraordinary elements, operating profits are up 20% to GBP940 million, with turnover up 6% to 7.625 billion pounds. GEC has restructured its operations to focus on telecommunications following the sale of its defence electronics division to British Aerospace, a deal still awaiting the seal of approval from the competition authorities. The "new" GEC now proposes to digest recent acquisitions in the United States (Reltec and Fore Systems) but is not excluding new purchases. Extraordinary elements for the past year include GBP96 million linked to restructuring and measures to guard against the millennium bug, and GBP50 million linked to the separation from Marconi Electronics before its sale on to BAe. Concurrently, a GBP745 million profit was secured from the sale of a stake in the Franco-British group Alstom, floated on the stock exchange last summer.

Research and development expenditure rose by 11% to GBP1.036 billion. The...