GE Earnings: Turnaround Progress Continues
Last Tuesday, General Electric (NYSE: GE) reported good results for the third quarter of 2021. The earnings report was far from perfect, which was no surprise, given the external headwinds GE faces today. However, the company again demonstrated the resilience of its business, hinting at its strong prospects as the economy recovers from the COVID-19 pandemic and recent supply chain disruptions.
General Electric generated $18.4 billion of revenue in the third quarter, including industrial organic revenue of $17.6 billion. Revenue fell about 1% year over year by both measures. Supply chain problems -- particularly for healthcare equipment -- drove the revenue decline, despite high demand.
While sales slipped last quarter, GE's profitability jumped. The healthcare division maintained a solid segment margin of 16.2%, generating operating income of $704 million. Meanwhile, GE Aviation reported an impressive recovery, as a rebound in services demand boosted its segment margin to 15.7%, up from 7.1% a year earlier and 8.3% in the first half of 2021. That enabled it to book a segment profit of $846 million: more than it earned in the first two quarters combined.
Source Fool.com
