GE has reported total revenue of $18.4bn, down only 1% over last year, with total orders of $22.1bn for the third quarter of 2021, a 42% increase over a year ago.
GE Chairman and CEO H. Lawrence Culp, Jr. said, “The GE team delivered another strong quarter. Orders grew, margins expanded, our overall cash performance was significantly better, and Aviation is building momentum and showing continued signs of recovery. The teams are managing through a challenging operating environment, including global supply chain disruptions and onshore wind market pressure due to the U.S. Production Tax Credit. Against that backdrop, we're raising our 2021 EPS expectations and narrowing our full-year free cash flow outlook."
Aviation orders of $6.9 billion increased by 69% reported and 70% organically as commercial engines and commercial services grew substantially again. Revenues of $5.4 billion were up 10% reported and organically. Commercial Services was up significantly with strength in external spares, and Commercial Engines decreased with lower shipments.
GE Capital reported a favourable year-on-year result from discontinued operations, generated a net gain of $0.6 billion, primarily due to the recent increase in AerCap's stock price, which is updated quarterly.
GE and AerCap will close the GECAS transaction on November 1, confirmed Culp who described it as “an important milestone in GE’s transformation to a more focused, simpler, stronger high-tech industrial company”.
Culp said: “Our progress strengthening our balance sheet and operations enables us to drive long-term growth and value in our businesses. With leading positions in our markets, we are serving customers with vital equipment and services that shape the future of flight, advance precision health, and lead the energy transition. We remain on track to deliver high single-digit free cash flow margins over time."
GE expects to use the proceeds from the GECAS sale to further reduce debt, with total reduction since the end of 2018 now expected to reach approximately $75 billion.
GOL completes refinancing R$1.2bn of short-term debt
GOL Linhas Aéreas Inteligentes (GOL) has completed the refinancing of its short-term bank debt in the amount of R$1.2 billion, via the extension of the 7th Series of Debentures and issuance of the 8th Series of Simple Non-Convertible Debentures by GLA Linhas Aéreas (GLA), an operating unit of the Company. The transaction was led by a syndicate of banks comprised of UBS BB, Bradesco BBI and Santander in accordance with CVM Instruction 476.
"Completing the refinancing of R$1.2 billion of short-term debt, and the subsequent conclusion of our liability management program, could not have come at a better time," stated Richard Lark, CFO. "Our balance sheet is now in a stronger position in terms of its outstanding debts, versus our peers, which we view to be a competitive advantage in the current market environment.