GE Posts Lower Sales, Loss on Restructuring Moves

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 [e-mail]

(END) Dow Jones Newswires

April 27, 2021 07:37 ET (11:37 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.