Summary
General Electric (GE) in 2017 faced significant headwinds, reporting a substantial net loss of $(6.2) billion, or $(0.72) per share, a stark contrast to the prior year's profit. This downturn was primarily driven by considerable charges and impairments, including a $6.2 billion after-tax charge related to GE Capital's insurance business, alongside restructuring costs and impairments within its industrial segments. Consolidated revenues saw a slight decrease to $122.1 billion. Despite these challenges, GE continued its strategic portfolio reshaping, completing the combination of its Oil & Gas business with Baker Hughes and selling its Water business. The company also announced plans to exit over $20 billion of assets in 2018-2019. Management acknowledged that 2017 results were below expectations, attributing the decline to softer market demands in Power, restructuring costs, and significant corporate charges, particularly related to the insurance business review. The company is focused on cost reduction, operational improvements, and strengthening its cash position for 2018.
Financial Highlights
48 data points| Revenue | $99.28B |
| Cost of Revenue | $64.33B |
| Gross Profit | $34.95B |
| R&D Expenses | $5.50B |
| SG&A Expenses | $14.26B |
| Operating Expenses | $112.71B |
| Operating Income | -$8.25B |
| Net Income | -$8.48B |
| EPS (Basic) | $-8.24 |
| EPS (Diluted) | $-8.24 |
| Shares Outstanding (Basic) | 1.09B |
| Shares Outstanding (Diluted) | 1.09B |
Key Highlights
- 1GE reported a net loss of $(6.2) billion for 2017, a significant reversal from a net profit of $8.2 billion in 2016, largely due to substantial charges.
- 2The company incurred a significant after-tax charge of $6.2 billion in Q4 2017 related to its run-off insurance business, including an increase in reserves.
- 3Consolidated revenues decreased slightly to $122.1 billion in 2017 from $123.7 billion in 2016.
- 4GE completed the combination of its Oil & Gas business with Baker Hughes to form Baker Hughes, a GE company (BHGE) in July 2017.
- 5The company sold its Water business for $3.1 billion, recognizing a pre-tax gain of $1.9 billion.
- 6Significant restructuring and impairment charges were recorded, totaling $5.3 billion for 2017, impacting segments like Power and Capital.
- 7GE announced plans to exit over $20 billion of assets in 2018-2019 as part of its ongoing portfolio review.