GE Sees Strong Power, Aviation Returns for First-Quarter 2016

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Researched by Industrial Info Resources (Sugar Land, Texas)--General Electric (GE) (NYSE: GE) (Fairfield, Connecticut) will focus more on more on industrial businesses like aviation and power as the oil and gas market environment remains problematic, according to the company. Industrial Info is tracking General Electric projects worth $1.04 billion. GE products are also sold to a wide range of projects tracked by Industrial Info.

"Diversity is a key strength during this period of volatility," said GE Chief Executive Officer Jeffrey R. Immelt during a conference call on Friday. "We're in the midst of a challenging Oil & Gas market. However, [we are seeing] sustained strength in Aviation and Power Markets...There's plenty of business out there to achieve our goals."

Joseph Mastrangelo, president and chief executive of Gas Power Systems for the GE Power branch of the company, mentioned the steady demand for gas power systems. "We forecast the market to be between 55 gigawatts to 60 gigawatts, for both heavy duty and aero gas turbines," he said. "Globally, we continue to see strong demand in North America and Asia, with good growth in China."

The company is launching the production of its HA turbine platform this year and plans to ship around 24 HA gas turbines for 2016. The firm will provide two 7HA heavy-duty gas turbines for an $800 million, 785-megawatt (MW) natural gas combined cycle (NGCC) generator in Oxford, Connecticut owned by Competitive Power Ventures Holdings, LLC (Silver Spring, Maryland). For more information on this project, see April 20, 2016, article Connecticut NGCC Secures Financing, Eyes 2018 Operation.

Total revenues for GE for the first quarter were $27.8 billion, a 6% increase from the same period of 2015. In terms of operating segments, each reported revenue increases from the first quarter of last year except Oil & Gas and Transportation. Power increased by 13% to $5.2 billion, Renewable Energy increased by 62% to $1.7 billion, Energy Connections increased 34% to $2.3 billion, Aviation increased 10% to $6.3 billion, Healthcare increased 3% to $4.2 billion and Appliances & Lighting increased 3% to nearly $2 billion. Oil & Gas suffered an 18% decrease to $3.3 billion compared with first quarter 2015, and Transportation decreased by 25% to $981 million.

The company saw a net loss of $98 million in the first quarter, compared with a $13.4 billion loss in first-quarter 2015.

The largest of the 19 GE projects that Industrial Info is tracking is the $700 million construction of two sulfur dioxide control units at a power generating station in Homer City, Pennsylvania. This project is expected to be completed this month, after kicking off in April 2012.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.