Summary
General Electric (GE) reported its first-quarter 2017 results, marked by significant strategic shifts aimed at streamlining its portfolio and focusing on industrial operations. Consolidated revenues saw a slight decrease of 1% to $27.7 billion, largely influenced by a 7% decline in Financial Services revenues, while industrial revenues remained relatively flat. The company's performance was bolstered by a substantial reduction in GE Capital's losses, which decreased by 95% due to cost-saving measures associated with the GE Capital Exit Plan. This significantly boosted overall consolidated earnings, which increased by $0.6 billion. GE continued to execute its portfolio transformation, announcing or completing several key transactions, including the acquisition of ServiceMax and LM Wind Power, and agreeing to combine its Oil & Gas business with Baker Hughes and sell its Water & Process Technologies business. The company highlighted positive performance in several industrial segments, notably Power and Aviation, which showed revenue and profit increases. However, the Oil & Gas segment experienced revenue and profit declines due to unfavorable market conditions. GE is actively managing its cost structure and undertaking restructuring actions across various segments to improve efficiency. The report also detailed GE Capital's ongoing efforts to shrink its balance sheet and reduce debt, with plans to issue new long-term debt to refinance existing obligations and fund strategic transactions. Liquidity remained strong, with significant cash reserves and committed credit lines available.
Financial Highlights
46 data points| Revenue | $26.88B |
| Cost of Revenue | $14.30B |
| Gross Profit | $12.58B |
| SG&A Expenses | $4.29B |
| Operating Expenses | $27.13B |
| Operating Income | $122.00M |
| Net Income | -$83.00M |
| EPS (Basic) | $-0.08 |
| EPS (Diluted) | $-0.08 |
| Shares Outstanding (Basic) | 1.09B |
| Shares Outstanding (Diluted) | 1.10B |
Key Highlights
- 1Consolidated revenues decreased by 1% to $27.7 billion, with Financial Services revenues down 7% and industrial revenues flat.
- 2Consolidated earnings increased by $0.6 billion, largely driven by a 95% reduction in GE Capital's losses.
- 3Completed the acquisition of ServiceMax for $0.9 billion and LM Wind Power for $1.7 billion, strengthening its digital industrial capabilities and renewable energy business.
- 4Announced plans to combine its Oil & Gas business with Baker Hughes and agreed to sell its Water & Process Technologies business for $3.4 billion, continuing portfolio transformation.
- 5Industrial segment profit increased by 9% to $3.6 billion, with strong performance in Power and Aviation offsetting declines in Oil & Gas.
- 6Restructuring and other charges totaled $1.0 billion, reflecting ongoing cost improvement efforts.
- 7GE Capital returned $2.0 billion in dividends to GE in Q1 2017, supporting GE's share repurchase activities.