Our commitment to transparent performance reporting
I hope this note finds you and your family healthy and well. Over the past two weeks, GE has participated in several investor events and meetings, and has continued to take liquidity-enhancing, leverage-neutral debt actions like you saw on Monday. I thought it might be helpful to summarize them in one place for you as well as provide answers to some of the more commonly asked investor questions during that timeframe.
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GE posted its first-quarter earnings on Wednesday. Reflecting on “a challenging quarter,” GE Chairman and CEO H. Lawrence Culp Jr. said “the world has fundamentally changed” in the eight weeks since he last updated analysts and investors. “This was a challenging quarter for GE, especially in Aviation, where we saw a dramatic decline in commercial aerospace as COVID-19 spread globally in March,” Culp said.
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I hope this message finds you and your family safe and healthy during this unprecedented time. GE released its first-quarter 2020 results today, and I encourage you to read the full materials and listen to our earnings call on GE’s investor website.
Key points on GE’s financial performance in the quarter:
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First and foremost, as I write this from my home “office” like many of you, I hope you and your families are staying healthy and safe during this difficult and unprecedented time around the world. The daily flow of information and pace of activity across our markets, businesses and communities impacting our employees, customers, and investors have been dynamic and humbling to say the least, but I wanted to pause for a moment to share a handful of updates.
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Dear fellow shareholder,
First, a sincere thank you for sharing your ideas and counsel over the last year. When I began as CEO, it was critical for me to listen, not just to replicate what’s worked for me elsewhere. Your feedback is playing an important role in our efforts to make GE a stronger, more valuable company.
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As we have done several times over the past year, I wanted to take a moment to highlight some of the work being done across GE as each of our businesses continues to innovate and deliver for our customers. Additionally, there are a few updates that the company has shared over the past week that I’d like to call to your attention:
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GE reported a 4.6% increase in Industrial segment organic revenue* to $24.7 billion in the fourth quarter of 2019, and a 5.5% increase to $88.1 billion for the whole year. The company also expanded its adjusted Industrial profit margin* by 410 basis points to 11.3% in the quarter, and by 60 basis points to 10% for the whole year.