(AP) — General Electric Co. anticipates returning to revenue growth this year, even as it deals with supply chain challenges.
The company said Tuesday that it anticipates aviation revenue rising more than 20% in 2022, dependent on the continued commercial market recovery. It foresees low- to mid-single-digit revenue growth in healthcare, driven by commercial efforts and new product launches.
However, the supply chain issues that addled manufacturers throughout 2021 show no signs of letting up, and investors sold off shares of GE early. The company’s stock fell 6% at the opening bell.
GE Chairman and CEO H. Lawrence Culp, Jr. said, “2021 was an important year for the GE team, marked by significant strategic, operational, and financial progress. We delivered solid margin, EPS, and free cash flow performance in 2021, exceeding our outlook. Orders for the year were up double digits, supporting faster growth going forward, while supply chain challenges, commercial selectivity, and uncertainty surrounding the U.S. wind production tax credit impacted our top-line.”
Culp continued, “We’re seeing real momentum and opportunities for sustainable profitable growth from near-term improvements in GE’s businesses, especially as Aviation recovers and our end markets strengthen. Our dramatic debt reduction means we can further intensify efforts to strengthen our operations and play offense, setting us up to deliver between $5.5 to $6.5 billion free cash flow in 2022 and more than $7 billion in 2023. As we lay the groundwork to create three independent companies focused on critical global needs, we’re encouraged by the support from our customers, employees, and investors. We’re confident that our businesses will deliver long-term growth and value.”
GE reported a fourth-quarter net loss of $3.84 billion, after reporting a profit in the same period a year earlier. The Boston company had a loss of $3.55 per share for the three months ended Dec. 31. Earnings, adjusted to extinguish debt and to account for discontinued operations, came to 82 cents per share.
GE’s continuing earnings per share was a loss of $3.24. The figure was a profit of 92 cents per share, on an adjusted basis. The results are based on the company’s prior three-column reporting format, which showed industrial operations separately from its financial services operations.
Analysts surveyed by Zacks Investment Research were calling for earnings of 83 cents per share.
GE announced in November that it was dividing itself into three public companies focused on aviation, health care, and energy.
The industrial conglomerate posted revenue of $20.3 billion in the quarter, compared with $21.03 billion a year earlier. Analysts surveyed by Zacks predicted $21.22 billion.
GE expects full-year earnings in the range of $2.80 to $3.50 per share.
Shares fell more than 5% in early morning trading.
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Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on GE at https://www.zacks.com/ap/GE
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