Tuesday, October 26, 2021
Profit over expectations
GE raises forecast after good quarter
Above all, the engine business drives profits at the US conglomerate General Electric. However, group-wide revenues in the summer were below the previous year’s level. The company is now specifying its expectations for the year as a whole.
The US conglomerate General Electric is raising its profit forecasts for the current year despite ongoing problems with the supply of raw materials. After the numbers for the third quarter were better than expected, the Siemens rival now expects adjusted earnings per share between 1.80 and 2.10 dollars, as the US company announced. So far, the range had been between $ 1.20 and $ 2.00.
In addition to the “challenges” in the supply chain, GE is also dealing with the unclear legal situation for onshore wind turbines. The Boston-based conglomerate is facing headwinds here because it is unclear whether US President Joe Biden’s Infrastructure Act will provide long-term tax breaks for the production of wind turbines.
In the three months to the end of September, adjusted earnings rose 55 percent year-on-year to $ 1.3 billion, GE further announced. This exceeded the predictions of most analysts. However, revenues fell just under one percent to $ 18.4 billion. While the engine business increased sales by ten percent, revenues in the Healthcare and Renewable Energies segments fell by 5 and 7 percent.
The adjusted profit was 57 cents per share. GE’s operating free cash flow is expected to be between $ 3.75 billion and $ 4.75 billion this year. So far, the group had promised 3.5 to 5.0 billion. The sale of the aircraft leasing business is expected to close on November 1, bringing in $ 24 billion in cash for the company.