Strong free cash flow finish to a challenging year; momentum growing across GE's businesses
Fourth quarter 2020:
- Total orders $23.2B, (7)%; organic orders (3)%
- Total revenues (GAAP) $21.9B, (16)%; Industrial organic revenues* $20.1B, (14)%
- Industrial profit margin (GAAP) of 14.4%, +800 bps; adjusted Industrial profit margin* 6.4%, (460) bps
- Continuing EPS (GAAP) $0.27, favorable year over year; adjusted EPS* $0.08, (60)%1
- GE Industrial CFOA (GAAP) $1.9B; Industrial free cash flow* $4.4B
Full year 2020:
- Total orders $72.0B, (20)%; organic orders (17)%; backlog $386.5B, (4)%
- Total revenues (GAAP) $79.6B, (16)%; Industrial organic revenues* $73.2B, (13)%
- Industrial profit margin (GAAP) of 10.0%, +790 bps; adjusted Industrial profit margin* 3.4%, (610) bps
- Continuing EPS (GAAP) $0.59, favorable year over year; adjusted EPS* $0.01, (98)%1
- GE Industrial CFOA (GAAP) $(1.3)B; Industrial free cash flow* $0.6B
BOSTON, Mass. — January 26, 2021 — GE (NYSE:GE) announced its fourth quarter and full year 2020 results.
GE Chairman and CEO H. Lawrence Culp, Jr. said, “As 2020 progressed, we significantly improved GE's profitability and cash performance despite a still-difficult macro environment. The fourth quarter marked a strong free cash flow finish to a challenging year, reflecting the results of better operations as well as strong and improving orders in Power and Renewable Energy."
Culp continued, “Over the past year our team proved resilient, and momentum is growing across our businesses. We are in leading positions to capture opportunities in the energy transition, precision health, and the future of flight. As we continue our transformation, we remain focused on strengthening GE and delivering value for the long term.”
GE made meaningful progress in 2020 on its priorities:
- Supporting the fight against COVID-19: Quadrupled ventilator production capacity and increased manufacturing capacity of other technologies used in the diagnosis and treatment of COVID-19. Supported 3,900 employees and their families through GE's Employee Relief Fund and supported global and community health and disaster relief efforts through the GE Foundation.
- Accelerating lean transformation: Reflected in improved results, including sequential margin expansion throughout the year and positive free cash flow. Realized more than $2 billion in cost actions and $3 billion in cash actions, in line with 2020 targets.
- Investing in leading technology and delivering for customers: Supplied the first purpose-built hydrogen-burning power plant in the U.S. with Gas Power's 7HA.02 turbine. Secured the first order for Renewable Energy's Haliade-X offshore wind turbine, which is now capable of generating up to 14 MW and has 5.7 GW of commitments. Received U.S. Federal Aviation Administration (FAA) certification of Aviation's GE9X engine, the world’s most powerful aircraft engine. Launched more than 40 new Healthcare products, including enhancing Mural Virtual Care Solution, which provides a complete view of patients' status across a care area, hospital, or system.
- Solidifying financial position: Reduced debt by $16 billion in 2020 and by $30 billion since the beginning of 2019. Reduced near-term liquidity needs by $10.5 billion, ending 2020 with $37 billion of liquidity. Closed sales of BioPharma and GE Lighting and launched program to fully monetize remaining stake in Baker Hughes.
- Continuing to build and empower world-class team: Appointed new CFO; CEOs of Aviation, Power Portfolio, and GE Capital; Chief Diversity Officer; Chief Audit Executive; and leaders throughout businesses and functions, including in commercial, supply chain, services, lean, and inclusion and diversity roles. Invested in new, virtual leadership development courses and lean training for employees.
Please visit our investor website for full information:
*Non-GAAP Financial Measure. The reasons we use these non-GAAP financial measures and the reconciliations to their most directly comparable GAAP financial measures can be found within GE’s fourth-quarter 2020 earnings materials posted to ge.com/investor.
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