Summary
General Electric Company (GE) reported its first-quarter 2021 results, characterized by a significant decline in consolidated revenues and a net loss attributable to shareholders. The primary driver for the revenue decrease was a substantial drop in GE Industrial revenues, heavily impacted by the ongoing effects of the COVID-19 pandemic on its Aviation segment. Despite operational challenges, GE reported progress on its strategic initiatives, most notably the announced agreement to combine its GE Capital Aviation Services (GECAS) business with AerCap Holdings N.V., a transaction expected to yield significant cash proceeds and a substantial stake in the combined entity. The company also continues its focus on de-leveraging and strengthening its balance sheet. While the industrial segments faced headwinds, the Healthcare segment showed organic revenue growth, indicating resilience in certain areas of the business. The financial results reflect the ongoing transformation at GE, with a notable non-cash after-tax charge related to the GECAS transaction. The company ended the quarter with a solid cash position and available credit lines, emphasizing its commitment to liquidity. Investors will be watching GE's execution of its strategic portfolio actions, cost-saving initiatives, and its ability to navigate the lingering impacts of the pandemic, particularly on its Aviation business, as key indicators for future performance.
Financial Highlights
48 data points| Revenue | $17.07B |
| Cost of Revenue | $12.54B |
| Gross Profit | $4.53B |
| R&D Expenses | $561.00M |
| SG&A Expenses | $2.89B |
| Operating Expenses | $17.51B |
| Operating Income | $92.00M |
| Net Income | -$2.80B |
| EPS (Basic) | $-2.62 |
| EPS (Diluted) | $-2.61 |
| Shares Outstanding (Basic) | 1.10B |
| Shares Outstanding (Diluted) | 1.10B |
Key Highlights
- 1Consolidated revenues decreased by 12% to $17.1 billion, primarily due to a 13% decline in GE Industrial revenues, significantly impacted by the Aviation segment.
- 2Announced agreement to combine GE Capital Aviation Services (GECAS) with AerCap Holdings N.V., expecting $23.9 billion in cash and a 46% ownership stake in the combined company.
- 3GE Industrial reported a loss of $0.5 billion in operating cash flow and $0.8 billion in free cash flow, an improvement compared to the prior year period.
- 4The Aviation segment experienced a significant 28% revenue decrease, reflecting the ongoing adverse impact of the COVID-19 pandemic on air travel.
- 5The Healthcare segment demonstrated resilience with a 7% organic revenue increase, driven by demand for Healthcare Systems (HCS) products and a recovery in Pharmaceutical Diagnostics (PDx).
- 6GE ended the quarter with $31.8 billion in consolidated cash, cash equivalents, and restricted cash, complemented by $20.2 billion in available credit lines.
- 7GE recorded a non-cash after-tax charge of $2.8 billion in discontinued operations related to the GECAS transaction.