The engines driving GE’s growth are, well, engines. CFM International, the company’s 50-50 joint venture with Safran Aircraft Engines, is set to deliver 100 next-generation LEAP jet engines by the end of the year. The LEAP will serve Airbus, Boeing as well as COMAC aircraft, and includes 3D-printed parts and advanced ceramic components. GE Power expects its Harriet machines — a line of the world’s largest and most efficient suite of heavy-duty gas turbines — to generate over $100 billion in revenue for the business over time.
CEO Jeff Immelt pointed to these products yesterday when he reaffirmed the full-year earnings framework of $1.45 to $1.55 per share at the Electrical Products Group Conference, an annual gathering in Florida of industrial executives, Wall Street analysts and investors. “We have always said the value of GE is the strength of our portfolio,” Immelt said.
Immelt expects GE’s Aviation, Power, Healthcare and Renewable Energy businesses to outperform goals and smooth out difficult cycles facing the oil and gas industries. He held to the goal of achieving 2 to 4 percent of organic growth, increasing core margins and returning about $26 billion in cash to investors.
“Fundamentally, we are an organic growth story,” Immelt said. “Expect to see strong EPS growth, sustainable competitive advantage through the GE Store [the idea that GE moves forward faster when its businesses share knowledge and technologies] and digital-industrial execution.”
Immelt stressed the importance of GE Digital in the company’s growth plan. GE continues to invest in Predix, the cloud-based operating system for the Industrial Internet. All of GE’s industrial businesses are building applications on the platform, contributing to GE’s digital growth with products like the Digital Power Plant, Flight Efficiency Services and the GE Health Cloud.
In June, GE is planning its first Digital Investor Day, allowing participants to dive deeper into GE Digital’s performance and strategy. Stay tuned to GE Reports and sign up for our investor newsletter to learn more over the coming weeks.