GE Posts Lower Sales, Loss on Restructuring Moves
April 27 2021 - 7:52AM
Dow Jones News
By Thomas Gryta
General Electric Co. reported lower revenue and a loss in its
first quarter as the company's jet-engine business and divestitures
weighed on its latest financial results.
GE's revenue fell 12% to $17.1 billion, reflecting a 28% decline
in its aviation unit and a 9% drop in its healthcare unit after
selling off part of the business. The company had a quarterly net
loss of $2.8 billion, compared with a profit of $6.2 billion a year
ago. The results include a $2.9 billion loss from the planned sale
of GE Capital's jet leasing business.
The industrial company said excluding discontinued operations
and other one-time charges its industrial free cash flow was
negative $845 million in the first quarter, an improvement from
burning $2.2 billion in the year-ago period. On that basis, it had
adjusted earnings of 3 cents a share, compared with analysts'
forecasts for a 1-cent profit.
GE backed its previous 2021 financial projections, including
cash flow of $2.5 billion to $4.5 billion from the industrial
operations, along with adjusted earnings of 15 cents to 25 cents a
share.
The company has been slashing costs in its aviation unit and
streamlining its power business, while shrinking its debt load
through asset sales including the deal to shed its jet leasing
business last month.
GE shares are up 84% in the last six months, closing Monday at
$13.57. The S&P 500 index is up about 21% in the same period.
The stock fell about 2% in pre-market trading Tuesday.
Write to Thomas Gryta at thomas.gryta@wsj.com
(END) Dow Jones Newswires
April 27, 2021 07:37 ET (11:37 GMT)
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