Summary
General Electric (GE) reported a significant revenue decline in the second quarter of 2020, primarily driven by the severe impact of the COVID-19 pandemic on its Aviation segment. Consolidated revenues were $17.7 billion, down 24% year-over-year, with GE Industrial revenues decreasing 25%. The Aviation segment saw a substantial revenue drop of 44% due to reduced air travel and its associated impact on engine and service orders. While the Healthcare segment experienced increased demand for certain products like ventilators, this was largely offset by declines in other areas. GE continued to implement cost-saving and cash preservation measures, targeting over $2 billion in operational cost out and over $3 billion in cash preservation actions company-wide. The company also took steps to bolster its liquidity by issuing $13.5 billion in longer-dated debt, extending its maturity profile and reducing near-term debt obligations. Despite these efforts, GE reported a net loss attributable to common shareholders of $2.18 billion for the quarter, or $(0.27) per share. However, the company highlighted its substantial cash position of $41.4 billion at the end of the quarter, providing a cushion against ongoing market uncertainties. The company also recognized significant goodwill impairments across its Aviation and Capital segments due to the pandemic's impact on business outlooks.
Financial Highlights
44 data points| Revenue | $16.81B |
| Cost of Revenue | $13.63B |
| Gross Profit | $3.18B |
| R&D Expenses | $611.00M |
| SG&A Expenses | $3.07B |
| Operating Expenses | $20.18B |
| Operating Income | $5.22B |
| Net Income | -$1.99B |
| EPS (Basic) | $-2.12 |
| EPS (Diluted) | $-2.12 |
| Shares Outstanding (Basic) | 1.09B |
| Shares Outstanding (Diluted) | 1.09B |
Key Highlights
- 1Consolidated revenues decreased by 24% to $17.7 billion, impacted by COVID-19, particularly in the Aviation segment.
- 2Aviation segment revenue fell 44% due to reduced air travel affecting engine and service demand.
- 3Healthcare segment saw mixed results with increased demand for COVID-related products but decreased demand elsewhere.
- 4GE secured $13.5 billion in longer-dated debt to enhance liquidity and extend its maturity profile.
- 5The company reported a net loss attributable to common shareholders of $2.18 billion ($0.27 per share).
- 6Consolidated cash, cash equivalents, and restricted cash stood at $41.4 billion as of June 30, 2020.
- 7GE recognized goodwill impairments totaling $1.7 billion across its Aviation ($0.9 billion) and Capital ($0.8 billion) segments.