Industrial segment profit rose 12% in the fourth quarter to $4.9 billion. All Industrial segments had positive earnings growth for the second consecutive quarter, and five of the seven segments achieved double-digit earnings growth. All Industrial segments also expanded margins in the quarter, with Industrial segment margins up 120 basis points over the prior-year period. Infrastructure orders for the quarter were $28.5 billion, up 2%, and up 7% excluding the effects of a decrease in orders for wind turbines, and FX. The ratio of equipment orders received to orders billed (book-to-bill) was 1.2. GE’s backlog of equipment and services at the end of the quarter was its highest ever, at $210 billion.
Industrial segment growth market revenues were up 9% for the quarter, excluding FX. For the year, Industrial segment growth market revenues increased 11%, driven by double-digit growth in Russia, Australia/New Zealand, Latin America, China, Sub-Saharan Africa and ASEAN.
Infrastructure order pricing rose 0.5% for the quarter, and four of six Infrastructure businesses had double-digit growth in orders for equipment, including Oil & Gas, Energy Management, Aviation, and Transportation. During the quarter, GE received orders from Petrobras of $0.4 billion for turbomachinery. GE also announced a $0.2 billion contract to supply subsea production equipment to Chevron’s Lianzi project and a contract with Renova Energia in Brazil worth $0.4 billion for 230 GE 1.68-82.5 wind turbines. In addition, CFM International (a 50/50 joint venture between GE and Snecma) announced a commitment from Alaska Airlines, the largest in its history, for the purchase of CFM engines to power 50 new Boeing 737 aircraft.
In 2012, the Company’s long-term investment in research & development led to the launch of new products like GE’s new power plant technology, FlexEfficiency™ 60, with turbines based on a design originally developed for supersonic jet engines. Also this year, GE Transportation introduced a prototype locomotive, the Tier 4 Evolution® Series, which will be the most fuel-efficient freight locomotive in its history, with a new combustion system to meet strict U.S. emission standards. In Industrial Internet applications, the Company announced nine new industrial service technologies for industries including energy, healthcare, aviation, rail and manufacturing.