March 5, 2020
2020 VISION
On an outlook call with analysts and investors yesterday, GE Chairman and CEO H. Lawrence Culp Jr. laid out plans to solidify the company’s finances, further strengthen its businesses and deliver long-term profitable growth. “We entered this year with momentum, having diligently addressed our most pressing issues and reset our foundation in 2019,” Culp said. “While there’s more work ahead, I am confident in our ability to execute, given the strengths of GE’s team, technology, and global reach and capabilities.”
A position of strength: The 2020 outlook projects GE industrial organic revenues* to grow by low single digits and adjusted industrial profit margin* to expand organically by up to 75 basis points. The company expects adjusted earnings per share* of $0.50 to $0.60 and industrial free cash flow* of $2 billion to $4 billion at year’s end. Joined on the call by leaders of GE’s businesses, Culp said the goals laid out will help the company further reduce leverage and strengthen its balance sheet: “Our mission-critical, global industrial businesses have a combined $405 billion backlog, and our leading technology and service capabilities put us in daily proximity with our customers with deep, strategic relationships.”
Learn more here about GE’s 2020 outlook.
BIG IN JAPAN
Last week All Nippon Airlines Co., Japan’s largest airline by revenue and passenger numbers, announced a new order for 15 Boeing 787 Dreamliners, worth $5 billion at list prices. The new craft will look different than the Dreamliners the airline already has in service: Rather than the Rolls-Royce engines that power ANA’s current Dreamliners, all 15 of the new twin-engine jets will be propelled into the sky by the GEnx engine, the fastest-selling engine in GE Aviation history. Delivery begins in 2022.
More than a dream: ANA is now the second airline to change its engine supplier from Rolls-Royce to GE for new Boeing 787s — Air New Zealand made the switch last year. GE Aviation developed a version of the engine, GEnx-1B, specifically for the Dreamliner, and both engine and aircraft share some cutting-edge materials, including lightweight carbon fiber composites. Design, materials, computer systems and engines together make the Dreamliner’s fuel consumption up to 20% lower compared to older aircraft models of similar size.
Learn more about the deal, and the GEnx engine, here.
COOLEST THINGS ON EARTH ?
1. Driver, Steer Thyself
Roboticists at Northwestern University developed a “decentralized” algorithm to help self-driving cars avoid crashing into one another or getting into bottlenecks.
2. Advance Warning
World Health Organization researchers used a simple urine test to detect a genetic mutation linked with bladder cancer — up to 10 years before clinical diagnosis.
3. Beating Diabetes
Scientists at Washington University School of Medicine in St. Louis found an efficient way to convert human stem cells into insulin-producing cells that “functionally cured” diabetes in mice for a period of time.
Read more here about this week’s Coolest Things on Earth.
— QUOTE OF THE DAY —
“We’re operating from a position of strength.”
— H. Lawrence Culp Jr., GE chairman and CEO
Quote: GE Reports. Image: GE Renewable Energy.
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