Today GE released its fourth-quarter results for 2018, reporting revenues of $33.3 billion, GE cash flows from operating activities of $6.4 billion, adjusted GE industrial free cash flows of $4.9 billion, and adjusted EPS of $0.17. Profit growth in Aviation, Healthcare and BHGE was offset by weakness in Power.
“Our strategy is clear: deleverage our balance sheet and strengthen our businesses, starting with Power,” said GE Chairman and CEO H. Lawrence Culp Jr. “To do this, we are improving execution, customer focus and how we set priorities across GE. I’m confident in our team, technology and the global reach of GE’s brand and relationships. We have more work to do, but I’m encouraged by the changes we’re making to strengthen GE and create value for our shareholders, customers and employees”.
GE’s Power units continued to book deals around the world. In Poland, for example, GE will design and build the Ostroleka C power plant for Elektrownia Ostroleka. The power station will have the highest efficiency level possible for a steam power plant in Poland with 46 percent efficiency, well above the global average of 33 percent.
GE Aviation had another outstanding quarter and year, shipping over 1,100 LEAP engines, an increase of 140 percent compared to 2017. As previously noted in GE Reports, CFM received orders and commitments for more than 16,300 LEAP engines valued in excess of $236 billion at list price.
GE Renewable Energy said in 2018 that it was building the world’s largest offshore wind turbine, the Haliade-X. The turbine has a rotor that measures 220 meters in diameter — twice the length of a football field — and stretches 260 meters from its base to blade tips. Each Haliade-X will be able to generate 12 megawatts, enough to supply 16,000 European homes. The business and the U.K’.s Offshore Renewable Energy (ORE) Catapult announced an $11 million, four-year research partnership aimed at minimizing the time people have to spend offshore, which will enhance both safety and operating costs for offshore wind farms. The partners will also test components for the Haliade-X.
GE Capital continued to support GE industrial businesses. In the fourth quarter, GE Capital EFS partnered with the Renewable Energy team to provide technology and advisory support for Kipeto Energy Plc’s 100-MW wind power project south of Nairobi, Kenya.
GE also announced plans to establish a new, independent digital business devoted to building a comprehensive Industrial Internet of Things (IIoT) software portfolio. GE said the company “is intended to be a GE wholly owned, independently run business with a new brand and identity, its own equity structure and its own board of directors”.
GE Healthcare continues to prepare for separation and recorded a strong year in 2018. On Jan. 25, the company also announced an update to the terms of its merger with Wabtec, which is expected to be completed by February 2019.
For more information about GE’s fourth-quarter results, please visit GE’s investor relations website.