GE Aviation posts gains
October 19, 2012, 03:38 pm
General Electric recently reported profit increases of 7 percent, accounting for $3.5 billion in the third quarter. The company said revenue increased 3 percent to $36 billion driven by the strength of its industrial segments, which all saw increases.
"The overall environment remains challenging, but GE continues to execute on our growth strategy," said Jeff Immelt, GE chairman and CEO. "GE's Industrial segments delivered another quarter of strong organic revenue growth, and we ended the quarter with a robust backlog. As expected, our margins increased 70bps over the prior year period, with margin expansion in all five Industrial segments."
Increases were led by GE Aviation, which indicated a 7 percent increase in profit in September on a year-over-year basis to $924 million. Although GE Aviation orders were lower than a year prior, the sector's backlog of $98 billion was 10 percent higher on a year-over-year comparison.
GE Aviation has thousands of employees throughout the Dayton, Ohio, region. The company announced plans to invest $51 million in new research and development to its central Dayton facility.
GE Capital saw 11 percent increases on a year-over-year comparison.
"We are focused on delivering our key commitments to investors including balanced double-digit earnings growth, strong organic growth, margin expansion and returning cash from GE Capital to fund balanced capital allocation for our shareholders," Immelt added. "The global economy is uncertain, and we are prepared for a variety of economic outcomes. We will continue to invest to win in our markets, while aggressively managing our overall cost structure."
General Electric's aviation sector is just one indication of general aviation's impact on the economy. Craig Spence, secretary general of the International Council of Aircraft Owner and Pilot Associations, said at the China Low Altitude Economy Summit in August that general aviation plays a significant role in the U.S. economy, adding that it provides other countries a model, as many are looking to expand their general aviation sectors.
Spence said there are 5,261 public-use airports, accounting for 10 times the amount of commercial airports, and 19,000 landing strips available. In addition, general aviation's infrastructure accounts for $150 billion in yearly contributions to the economy, supporting millions of jobs and providing helpful services during disasters and other times of need.
Pilots supporting the large role that general aviation has on the economy should consider pilot life insurance to get their own finances in order.
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