01—Abstract
Summary
Summary of the 10-K filed February 10, 2023. Cited figures are marked; the original filing is the authoritative source.
General Electric (GE) reported total revenues of $76.6 billiona for the fiscal year ended December 31, 2022, an increase of 3% year-over-year.
The company achieved positive cash flow from operating activities of $5.9 billionb and free cash flow of $4.8 billion, a significant improvement from the previous year. GE successfully completed the spin-off of its Healthcare business in January 2023, a major step in its plan to separate into three independent companies. The Aerospace segment saw substantial revenue and profit growth driven by the recovery in air travel, while the Power segment also showed improved profitability.
The Renewable Energy segment, however, experienced increased losses due to cost inflation, product quality issues, and restructuring efforts. GE continues to navigate inflationary pressures and supply chain challenges across its businesses.
The company is actively managing its debt and returned $1 billionc to shareholders through share repurchases in 2022. Looking ahead, GE is focused on completing the spin-off of its energy businesses into GE Vernova, while strengthening its core operations and managing its financial structure to support long-term value creation.
02—Key points
Key Highlights
- Total revenues increased by 3% to $76.6 billion in 2022, driven by strong performance in Aerospace and Healthcare.
- Positive operating cash flow of $5.9 billion and free cash flow of $4.8 billion were reported, marking a significant improvement.
- The spin-off of GE HealthCare was successfully completed on January 3, 2023, as part of GE's strategic plan to create three independent companies.
- Aerospace segment revenue grew by 22% and segment profit by 66%, reflecting the recovery in air travel.
- Power segment profit increased by 68%, benefiting from improved pricing and prior-year cost adjustments.
- Renewable Energy segment continued to face challenges, with losses increasing to $2.2 billion due to cost inflation, warranty reserves, and restructuring.
- GE repurchased $1 billion of its common stock in 2022 and reduced total borrowings by $2.8 billion.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2022filed February 10, 2023Financial Statements
FY2022 against FY2021
| Line item | FY2022FY2021 | Change |
|---|---|---|
| Revenue | $29.14B$56.47B | −48.4% |
| R&D Expenses | $808.00M$1.68B | −52.0% |
| SG&A Expenses | $3.67B$8.18B | −55.1% |
| Operating Expenses | $28.43B$64.86B | −56.2% |
| Operating Income | $1.35B-$4.82B | +128.0% |
| Net Income | $336.00M-$6.34B | +105.3% |
| EPS (Basic) | $0.05$-6.00 | +100.8% |
| EPS (Diluted) | $0.05$-6.00 | +100.8% |
| Shares Outstanding (Basic) | 1.10B1.10B | −0.2% |
| Shares Outstanding (Diluted) | 1.10B1.10B | +0.3% |
05—Questions
Frequently Asked Questions
What was GE's overall financial performance in 2022?
GE reported total revenues of $76.6 billion, a 3% increase from 2021. The company generated $5.9 billion in cash flow from operating activities and $4.8 billion in free cash flow, demonstrating a significant improvement in financial health. Net earnings attributable to common shareholders were a loss of $64 million, but this was heavily impacted by various charges and separation costs.
How is the strategic separation into three companies progressing?
The spin-off of GE HealthCare was successfully completed on January 3, 2023. GE now holds approximately 19.9% of GE HealthCare's common stock and plans to monetize this stake over time. The company is continuing to work towards the planned spin-off of its energy businesses, to be branded as GE Vernova.
What were the key performance drivers and challenges across GE's segments?
The Aerospace segment was a strong performer, with revenue up 22% and profit up 66% due to the recovery in commercial air travel and strong military demand. The Power segment saw revenue decrease slightly but profit increase by 68% due to improved pricing and fewer charges. The Renewable Energy segment continued to struggle, with revenues down 17% and losses increasing significantly to $2.2 billion, primarily due to cost inflation, warranty issues on onshore wind turbines, and ramp-up costs for offshore wind products.
How is GE managing its debt and capital structure?
GE reduced its total borrowings by $2.8 billion in 2022. The company also repurchased $1 billion of its common stock. GE's financial policy aims to maintain a disciplined approach with an investment-grade long-term credit rating. The company is actively managing its debt and expects to allocate additional capital to debt reduction in the future.
06—Continue