GE Q3 Loss Sharply Narrows, Results Top Estimates

(RTTNews) - Industrial conglomerate General Electric Co. (GE) reported Wednesday a net loss for the third quarter that sharply narrowed from last year. Consolidated revenues rose 5 percent from last year. Both adjusted earnings per share and quarterly revenues topped analysts' expectations.

"We are improving our profit and cash performance with organic margin expansion in every segment except Aviation, though orders more broadly remain under pressure," said Lawrence Culp, Jr., Chairman and chief Executive officer.

In the pre-market trade, GE is trading at $7.53, up $0.43 or 5.98 percent.

GE reported that net loss attributable to common shareowners for the quarter sharply narrowed to $1.19 billion or $0.14 per share from $9.47 billion or $1.08 per share in the prior-year quarter.

Loss from continuing operations attributable to common shareowners was $1.16 billion or $0.13 per share, narrower than $1.33 billion or $0.15 per share in the year-ago quarter.

Results from the latest quarter include non-cash impairment charges in Steam Power and the impact of marking GE's investment in Baker Hughes to market.

Excluding items, adjusted earnings per share for the quarter were $0.06, compared to last year's $0.15. On average, 16 analysts polled by Thomson Reuters expected the company to report a loss of $0.04 per share for the quarter. Analysts' estimates typically exclude special items.

Consolidated revenues for the quarter declined 17 percent to $19.42 billion from $23.36 billion in the same quarter last year. Analysts expected revenues of $18.72 billion for the quarter.

GE Industrial organic revenues decreased 12 percent to $17.9 billion. Total orders for the quarter also declined 12 percent to $15.5 billion and decreased 28 percent organically.

Power segment revenues grew 3 percent to $4.03 billion on a reported and organic basis, with Gas Power up 7 percent organically and Power Portfolio down 7 percent organically.

Renewable Energy segment revenues were also up 2 percent to $4.53 billion and up 4 percent organically, mainly driven by Onshore Wind, with new unit turbine deliveries of 1,170 and repower kit deliveries of 300.

However, Aviation segment revenues declined 39 percent to $4.92 billion, with equipment down driven by 385 fewer engine sales year over year, including sales of 172 LEAP-1A and -1B units down 283 from last year.

Healthcare segment revenues were down 7 percent to $4.57 billion, primarily driven by $0.3 billion related to delivering the remaining ventilators ordered by the U.S. Department of Health and Human Services as well as strong delivery of COVID-19-related product backlog, partially offset by a decrease in Pharmaceutical Diagnostics.

GE Capital revenues decreased 20 percent to $1.68 billion from last year.