BOSTON — General Electric on Tuesday reported better second-quarter performance than analysts expected.
While the company is still losing money, strong performance in its Aviation business helped set the tone for the quarter, outweighing sluggish performance by GE Renewable Energy and supply chain constraints that have held back Healthcare.
The company’s stock closed at $71.51 per share in heavier than normal trading, up 4.6% on a day when the Nasdaq as a whole was down 1.9%.
The stock has now closed higher eight straight trading days, with a combined 17.1% price increase, though it is still worth far less now than five years ago.
General Electric reported $17.9 billion in adjusted revenue for the second quarter of 2022, 2% more than a year earlier.
Using Generally Accepted Accounting Principles, that worked out to a loss of 59 gets a share; with non-GAAP adjustments, GE reported earnings of 78 cents per share.
Chairman and CEO H. Lawrence Culp Jr. said economic forces continue to press the company and its financials.
“This remains the toughest operating environment I’ve seen,” he said, but “overall, this was a strong quarter for GE with orders, revenue, profit and cash, all growing.”
Culp, who a month ago added the role of CEO of Aviation to his duties, said that business “was the key driver and services remain a bright spot of performance.”
He spoke of improved efficiency in the business improving the bottom line, using a Welsh service facility as an example.
“Operators on my team shared with me how they spent 45 minutes searching for parts for what is often a 60-minute operation. By removing this waste, we improved turnaround time at Wales by three to five days, about a 5% reduction. These examples are everywhere at GE,” Culp said.
He also singled out Renewables as a problem child.
“In Renewables, it’s been a disappointing first half, and we’re intensely focused on stabilizing the business,” he said. “First, given the U.S. political environment, we’re taking a more conservative view of the market for the time being.
“One key difference in onshore, we aren’t sizing ourselves to the market. We’re sizing ourselves based on our refocused efforts on select geographies where we believe we can grow and grow profitably.”
GE Renewables’ North American onshore wind power operations are based at the Schenectady-Rotterdam campus where the company was born.
Between that facility and the GE Research headquarters in Niskayuna, the company has a few thousand employees in the county.
Its presence in the Capital Region is a shadow of what it was in the mid-1900s, but it remains an important part of the community and the corporate landscape here.
The conglomerate is preparing to break itself up, starting with the spinoff of Healthcare in early 2023 and followed by the spinoff of Power, Renewables, Energy Financial Services and Digital into an entity to be called GE Vernova.
That will leave GE Aviation, which has already begun rebranding as GE Aerospace.