* Significant top-line, operating profit, and cash growth; raising 2023 guidance;
*
Third quarter 2023:
* Total orders of
* Total revenues (GAAP) of
* Profit margin (GAAP) of 1.7%, +330 bps; adjusted profit margin* 9.8%, +760 bps organically*
* Continuing EPS (GAAP) of
* Cash from Operating Activities (GAAP) of
Culp concluded, "Based on our year-to-date results and continued momentum in the fourth quarter,
* Delivered double-digit growth in orders, revenue, and operating profit driven by commercial momentum and strength in services. Orders grew 34% and revenue was up 25%, led by Commercial Engines and Services with Defense revenue up 8%, led by services and Edison Works.
* Announced the
* Named executive leadership team members, including
GE Vernova1
* Drove strong revenue and operating profit growth in
* Accumulated more than two million commercial operating hours for the advanced H-Class, heavy-duty gas turbine fleet, supporting HA services billings growing to
* Named
In addition,
* Announced today that it expects to spin off GE Vernova and launch
* Received total proceeds of approximately
* Redeemed remaining outstanding shares of
* Repurchased approximately 2.2 million common shares for
* Incurred separation costs of
* Completed its annual review of liability cash flow assumptions at its run-off insurance portfolio in the quarter, which resulted in an immaterial impact to net earnings.
2023 Guidance
Based on year-to-date results and expectations for continued momentum in the fourth quarter,
Results by Reporting Segment
The following segment discussions and variance explanations are intended to reflect management's view of the relevant comparisons of financial results.
Services revenue also grew this quarter. Segment margin of 6.0% expanded 200 basis points reported and organically*, driven by volume, pricing, and productivity, which more than offset inflation pressure.
Financial Measures That Supplement GAAP
We believe that presenting non-GAAP financial measures provides management and investors useful measures to evaluate performance and trends of the total company and its businesses. This includes adjustments in recent periods to GAAP financial measures to increase period-to-period comparability following actions to strengthen our overall financial position and how we manage our business.
In addition, management recognizes that certain non-GAAP terms may be interpreted differently by other companies under different circumstances. In various sections of this report we have made reference to the following non-GAAP financial measures in describing our (1) revenues, specifically organic revenues by segment; organic revenues, (2) profit, specifically organic profit and profit margin by segment; Adjusted profit and profit margin; Adjusted organic profit and profit margin; Adjusted earnings (loss) and Adjusted earnings (loss) per share (EPS), (3) cash flows, specifically free cash flows (FCF), and (4) guidance, specifically 2023 Adjusted EPS and 2023 FCF.
The reasons we use these non-GAAP financial measures and the reconciliations to their most directly comparable GAAP financial measures follow. Certain columns, rows or percentages within these reconciliations may not add or recalculate due to the use of rounded numbers. Totals and percentages presented are calculated from the underlying numbers in millions.
Caution Concerning Forward Looking Statements:
This release and certain of our other public communications and
For us, particular areas where risks or uncertainties could cause our actual results to be materially different than those expressed in our forward-looking statements include:
* our success in executing planned and potential transactions, including our plan to pursue a spin-off of GE Vernova, and sales or other dispositions of our equity interests in
* changes in macroeconomic and market conditions and market volatility, including risk of recession, inflation, supply chain constraints or disruptions, interest rates, perceived weakness or failures of banks, the value of securities and other financial assets (including our equity interests in
* global economic trends, competition and geopolitical risks, including impacts from the ongoing conflict between
* the status of the ongoing recovery from the impact of the COVID-19 pandemic, including impacts of virus variants and resurgences, and of government, business and individual responses, and in particular any adverse impacts to the aviation industry and its participants;
* our capital allocation plans, including de-leveraging actions to reduce
* downgrades of our current short- and long-term credit ratings or ratings outlooks, or changes in rating application or methodology, and the related impact on our funding profile, costs, liquidity and competitive position;
* the amount and timing of our cash flows and earnings, which may be impacted by macroeconomic, customer, supplier, competitive, contractual and other dynamics and conditions;
* capital and liquidity needs associated with our financial services operations, including in connection with our run-off insurance operations and mortgage portfolio in
* market developments or customer actions that may affect demand and the financial performance of major industries and customers we serve, such as demand for air travel and other aviation industry dynamics; pricing, cost, volume and the timing of investment by customers or industry participants and other factors in renewable energy markets; conditions in key geographic markets; technology developments; and other shifts in the competitive landscape for our products and services;
* operational execution by our businesses, including the success at our Renewable Energy business in improving product quality and fleet availability, executing on our product and project cost estimates and delivery schedule projections and other aspects of operational performance, as well as the performance of
* changes in law, regulation or policy that may affect our businesses, such as trade policy and tariffs, regulation and incentives related to climate change (including the impact of the Inflation Reduction Act and other policies), and the effects of tax law changes;
* our decisions about investments in research and development, and new products, services and platforms, and our ability to launch new products in a cost-effective manner;
* our ability to increase margins through implementation of operational improvements, restructuring and other cost reduction measures;
* the impact of regulation and regulatory, investigative and legal proceedings and legal compliance risks, including the impact of shareholder and related lawsuits,
* the impact of actual or potential quality issues or failures of our products or third-party products with which our products are integrated, and related costs and reputational effects;
* the impact of potential information technology, cybersecurity or data security breaches at
* the other factors that are described in the "Risk Factors" section in our Annual Report on Form 10-K for the year ended
These or other uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements. This document includes certain forward-looking projected financial information that is based on current estimates and forecasts. Actual results could differ materially.
Additional Financial Information
Additional financial information can be found on the Company's website at: www.ge.com/investor under Events and Reports.
Conference Call and Webcast
About
GE Investor Contact:
GE Media Contact:
.
(C) 2023 M2 COMMUNICATIONS, source