07/26/2022 | Press release | Distributed by Public on 07/26/2022 05:10
GE released its second quarter results today, and I encourage you to read the full materials and listen to our earnings call at 8:00 AM ET.
Key highlights on GE's financial performance for 2Q'22:
GE Chairman and CEO and GE Aerospace CEO H. Lawrence Culp, Jr. said, "The GE team delivered a strong second quarter with growth in orders, revenue, and profit, as well as positive free cash flow. Aerospace was a key driver of our performance this quarter as the industry recovery builds momentum. In higher-margin services, GE delivered double-digit revenue growth, with Aerospace up 47 percent compared to last year. We are improving delivery, price, and cost performance via lean and decentralization. Notwithstanding this progress, much is still uncertain about the external pressures companies are facing at this moment. We continue to trend toward the low end of our 2022 outlook on all metrics except cash, which is lower due to timing of working capital and Renewable Energy-related orders."
Culp concluded, "We're building meaningfully stronger businesses as we focus on serving our customers and investing through these constraints. We are on track and confident in our plans to form three independent companies positioned to create long-term value."
This quarter both equipment and services orders were up, driven by Aerospace. Revenue grew in three of our four segments. Margins were better year-over-year, particularly at Aerospace and Power. HealthCare remains pressured but is stabilizing, and Renewables remains challenging. FCF* was roughly flat year-over-year.
Across our businesses, we are taking actions to drive delivery, price, cost, and cash performance. At Aerospace we are working with suppliers, holding kaizens to increase throughput. At HealthCare, we are broadening our supplier base and requalifying parts to manage material availability issues. At Renewables, given the U.S. political environment currently impacting demand, we're taking a conservative view for the time being and building a strategy to resize the business to ~2,000 GE Onshore Wind turbines a year, while focusing on lean, decentralization, and selectivity. Lastly, at Power we continue to leverage lean and invest in Gas and Steam services productivity.
While our teams are acutely focused on these operational improvements, we're driving growth and investing in innovation. Over the past week, Aerospace announced that Delta Air Lines and Qatar Airways selected the CFM LEAP-1B engines to power their new fleets of 737-10 aircrafts. HealthCare recently announced a partnership with Medtronic that enables personalized care on our CARESCAPE precision monitoring platform. And, Power recently won the first HA gas turbine order in Vietnam, while Renewables introduced Sierra, our newest onshore wind turbine designed specifically for the North America region.
Looking ahead, with our solid financial and operational foundation and forward trajectory, we have further advanced our plans to create three independent companies, including:
We look forward to keeping you updated on our progress and appreciate your continued interest in GE.
Best,
Steve
*Non-GAAP Financial Measure. The reasons we use these non-GAAP financial measures and the reconciliations to their most directly comparable GAAP financial measures are included in our annual report on Form 10-Q and our first quarter earnings release.
This document contains "forward-looking statements." For details on the uncertainties that may cause our actual future results to be materially different than those expressed in our forward-looking statements, see here as well as our quarterly report on Form 10-Q for quarter ended June 30, 2022.