GE reports loss on continued pressure in aviation
Issued on: Modified:
New York (AFP) –
General Electric reported a first-quarter loss Tuesday on lower revenues in key divisions, including power and aviation, which remains under pressure amid Covid-19.
GE pointed to some recent aviation engine orders for new Boeing and Airbus planes, as well as an uptick in gas turbine orders. However, overall orders were still down for both power and aviation compared with the year-ago period.
The company reported a $2.9 billion loss, compared with profits of $6.2 billion in the year-ago period, when GE booked a large gain from a divestiture.
Revenues fell 12 percent to $17.1 billion.
Besides power and aviation, revenues also fell in healthcare. Some of GE's healthcare equipment has seen less use as consumers defer non-essential medical procedures during the pandemic.
Chief Executive Larry Culp, who has overseen cost-cutting efforts and divestitures to reduce debt, said he was "proud of the GE team's solid first-quarter results, despite a still difficult environment for aviation."
GE said a deal announced in March to sell its aircraft leasing business to AerCap for $30 billion would enable it to achieve total debt reduction of more than $70 billion since the end of 2018.
The company reaffirmed its full-year forecasts, including industrial revenue growth in the "low-single-digit range," excluding the effect of acquisitions and divestitures.
Shares fell 2.8 percent to $13.19 in pre-market trading.
© 2021 AFP