BOSTON — GE announced results today for the third quarter ending September 30, 2021.
GE Chairman and CEO H. Lawrence Culp, Jr. said, “The GE team delivered another strong quarter. Orders grew, margins expanded, our overall cash performance was significantly better, and Aviation is building momentum and showing continued signs of recovery. The teams are managing through a challenging operating environment, including global supply chain disruptions and onshore wind market pressure due to the U.S. Production Tax Credit. Against that backdrop, we’re raising our 2021 EPS expectations and narrowing our full-year free cash flow outlook.”
Culp continued, “Closing the GECAS transaction on November 1 will mark an important milestone in GE’s transformation to a more focused, simpler, stronger high-tech industrial company. Our progress strengthening our balance sheet and operations enables us to drive long-term growth and value in our businesses. With leading positions in our markets, we are serving customers with vital equipment and services that shape the future of flight, advance precision health, and lead the energy transition. We remain on track to deliver high single-digit free cash flow margins over time.”
GE continues to make progress in its transformation:
- Solidifying financial position and focusing on industrial core: GE and AerCap obtained all required regulatory clearances for the GECAS transaction and expect to close November 1, subject to other customary closing conditions. GE expects to use the proceeds to further reduce debt, with total reduction since the end of 2018 now expected to reach approximately $75 billion. Following close, the remainder of GE Capital will be reported within Corporate, simplifying the presentation of GE’s results and moving from three-column to one-column financial statement reporting.
- Accelerating lean and decentralization: GE’s lean transformation continues to scale across the businesses and drive meaningful and sustainable progress in safety, quality, delivery, cost, and cash. The teams are making improvements in both manufacturing and transactional settings, such as 10% faster turnaround time at Aviation’s overhaul and component repair shops and 30% average billing cycle time improvement at Steam Power.
- Driving long-term growth and value across our businesses: GE is playing offense through commercial execution, new product introductions, and technology innovation, complemented by inorganic growth:
- Future of Flight: Completed first flight of the CatalystTM engine, the first clean-sheet turboprop design to enter the business and general aviation market in 50 years. Secured an order from Hindustan Aeronautics Limited (HAL) for nearly 100 F404 engines and support services, valued at more than $700 million.
- Precision Health: Will acquire BK Medical for a cash purchase price of $1.45 billion, expanding Healthcare’s ultrasound platform from diagnostics to surgical and therapeutic interventions, as well as patient monitoring. Introduced Edison True Picture Archive and Communication System (TruePACS), an AI-enabled, cloud-based diagnostic imaging and workflow solution for radiologists.
- Energy Transition: Started operating GE’s Haliade-X offshore wind prototype turbine at 14 MW, a first in the industry. Delivered, installed, and commissioned four TM2500 aeroderivative gas turbines to complement renewable power generation in California, helping to enhance reliability and sustainability of the grid.