Summary
General Electric Company (GE) reported its third-quarter 2021 results, showcasing a mixed financial performance driven by segment-specific trends and ongoing strategic transformations. Consolidated revenues saw a slight decrease, primarily due to lower GE Industrial and GE Capital revenues. However, the company highlighted significant improvements in profitability, especially within its GE Industrial segment, boosted by gains on equity securities and higher profits in the Aviation and Power segments. The Aviation division demonstrated resilience with improved market fundamentals despite the ongoing impact of the COVID-19 pandemic on air travel, while Renewable Energy faced revenue declines and increased losses due to market uncertainties and product introduction costs. Operationally, GE is progressing with its GECAS divestiture to AerCap, expected to close soon, which will significantly impact its financial structure. The company also continues its liability management actions, having repurchased substantial amounts of debt. Despite supply chain pressures and inflationary impacts noted across several segments, GE remains focused on cost reduction and strategic investments for future growth, particularly in sustainable aviation and healthcare innovation.
Financial Highlights
48 data points| Revenue | $18.57B |
| Cost of Revenue | $13.40B |
| Gross Profit | $5.17B |
| R&D Expenses | $627.00M |
| SG&A Expenses | $2.75B |
| Operating Expenses | $18.34B |
| Operating Income | $179.00M |
| Net Income | $1.26B |
| EPS (Basic) | $1.09 |
| EPS (Diluted) | $1.08 |
| Shares Outstanding (Basic) | 1.10B |
| Shares Outstanding (Diluted) | 1.10B |
Key Highlights
- 1Consolidated revenues for Q3 2021 were $18.4 billion, a slight decrease of $0.1 billion compared to the prior year's quarter, primarily driven by declines in GE Industrial and GE Capital revenues.
- 2GE Industrial organic revenues decreased by 1%, with Aviation showing growth while Healthcare, Renewable Energy, and Power experienced declines.
- 3GE Industrial profit saw a significant increase of $2.2 billion year-over-year, reaching $0.9 billion, largely due to a $1.1 billion gain on equity securities and improvements in segment profits, especially in Aviation and Power.
- 4The Aviation segment's revenues increased by 10% organically to $5.4 billion, driven by higher commercial services volume, while profit more than doubled year-over-year to $846 million due to cost reductions and higher shop visit volumes.
- 5Renewable Energy reported a segment loss of $151 million on revenues of $4.2 billion, a 7% decrease organically, impacted by lower repower unit deliveries, grid solutions volume, and new product introduction costs.
- 6GE announced an agreement to acquire BK Medical for $1.45 billion, a move aimed at strengthening its position in the healthcare sector.
- 7The company made progress on its strategic priorities, including debt reduction through tender offers totaling $7.3 billion in Q2 2021 and preparation for the GECAS transaction closing, expected in November 2021.