GE Earnings Climb on Strong Demand for Jet Engines, Power Equipment
General Electric reported strong demand for its power equipment in the fourth quarter.
Photo:
sebastien salom-gomis/Agence France-Presse/Getty Images
General Electric Co.
GE 2.69%
reported strong demand for its jet engines and power equipment in the fourth quarter, lifting the manufacturer to a quarterly profit and higher revenue than a year ago.
The final quarter of the year is typically the strongest for the company, which generated cash flow of $4.3 billion in the period, bringing its total to $4.8 billion for the year. The latest results include
GE HealthCare Technologies Inc.,
GEHC 4.12%
which it spun off in early January.
The company had a fourth quarter profit of $2.1 billion on a 7% increase in total revenue to $21.8 billion. The earnings results topped Wall Street’s expectations. GE forecast higher revenue for 2023 but set a cash flow target for the year below some expectations after the healthcare spinoff. GE shares slipped 2% in premarket trading.
GE began the year by splitting off its healthcare unit, completing a key step in the breakup of the American icon which is now focused on GE Aerospace, its jet engine division, and a portfolio of energy businesses that will become a separate company called GE Vernova in 2024.
GE projected free cash flow between $3.4 billion to $4.2 billion for 2023, an estimate that may adjust over the year. In the middle of 2022, GE cut its projections by about $1 billion from the $5.5 billion to $6.5 billion it had previously predicted.
The company expects operating profit of $5.3 billion to $5.7 billion for GE Aerospace for the year and an operating loss of $600 million to $200 million for GE Vernova.
“Looking ahead, GE is positioned to drive growth, profit, and cash, and our outlook reflects our confidence in our businesses,” GE Chief Executive
Larry Culp
said in a statement.
The spinoffs are designed to simplify GE’s operations and make the assets more attractive to investors. Mr. Culp has said the breakup will bring more focus and accountability to the business he has revamped since 2018. He plans to stay on as CEO of GE Aerospace, the biggest and most profitable unit.
(more to come)
Write to Thomas Gryta at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
General Electric reported strong demand for its power equipment in the fourth quarter.
Photo:
sebastien salom-gomis/Agence France-Presse/Getty Images
General Electric Co.
GE 2.69%
reported strong demand for its jet engines and power equipment in the fourth quarter, lifting the manufacturer to a quarterly profit and higher revenue than a year ago.
The final quarter of the year is typically the strongest for the company, which generated cash flow of $4.3 billion in the period, bringing its total to $4.8 billion for the year. The latest results include
GE HealthCare Technologies Inc.,
GEHC 4.12%
which it spun off in early January.
The company had a fourth quarter profit of $2.1 billion on a 7% increase in total revenue to $21.8 billion. The earnings results topped Wall Street’s expectations. GE forecast higher revenue for 2023 but set a cash flow target for the year below some expectations after the healthcare spinoff. GE shares slipped 2% in premarket trading.
GE began the year by splitting off its healthcare unit, completing a key step in the breakup of the American icon which is now focused on GE Aerospace, its jet engine division, and a portfolio of energy businesses that will become a separate company called GE Vernova in 2024.
GE projected free cash flow between $3.4 billion to $4.2 billion for 2023, an estimate that may adjust over the year. In the middle of 2022, GE cut its projections by about $1 billion from the $5.5 billion to $6.5 billion it had previously predicted.
The company expects operating profit of $5.3 billion to $5.7 billion for GE Aerospace for the year and an operating loss of $600 million to $200 million for GE Vernova.
“Looking ahead, GE is positioned to drive growth, profit, and cash, and our outlook reflects our confidence in our businesses,” GE Chief Executive
Larry Culp
said in a statement.
The spinoffs are designed to simplify GE’s operations and make the assets more attractive to investors. Mr. Culp has said the breakup will bring more focus and accountability to the business he has revamped since 2018. He plans to stay on as CEO of GE Aerospace, the biggest and most profitable unit.
(more to come)
Write to Thomas Gryta at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
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