GE Aerospace forecasts $10bn operating profit in 2028
07 March 2024 - 16:48
byRajesh Kumar Singh and Abhijith Ganapavaram
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GE Aerospace's booth at the Singapore Airshow at Changi Exhibition Centre in Singapore, February 21 2024. Picture: REUTERS/Edgar Su
New York — General Electric’s (GE) aerospace business has reaffirmed its outlook for the current year and forecast a $10bn operating profit in 2028, citing robust demand for its products and services.
The aerospace business, which will become a stand-alone company on April 2, planned to return 70%-75% cash to shareholders via buybacks and dividends, including initial dividend payout at 30% of net income, it said.
GE Aerospace has been a cash cow of the Boston-based company, with some analysts estimating its market value to be more than $100bn after the spin-off.
The unit, which makes engines for Boeing and Airbus jets, has seen a surge in demand for aftermarket services as a strong rebound in travel and a shortage of new jets prompt airlines to keep their planes in the air for longer.
Its commercial engine business generates more than 70% of its $24bn annual revenue from services. It reaffirmed its forecast for $6bn-$6.5bn in adjusted operating profit in 2024 and more than $5bn in free cash flow.
GE Aerospace said it would pursue M&A deals with a “disciplined” approach and prioritise investments in research & development.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
GE Aerospace forecasts $10bn operating profit in 2028
New York — General Electric’s (GE) aerospace business has reaffirmed its outlook for the current year and forecast a $10bn operating profit in 2028, citing robust demand for its products and services.
The aerospace business, which will become a stand-alone company on April 2, planned to return 70%-75% cash to shareholders via buybacks and dividends, including initial dividend payout at 30% of net income, it said.
GE Aerospace has been a cash cow of the Boston-based company, with some analysts estimating its market value to be more than $100bn after the spin-off.
The unit, which makes engines for Boeing and Airbus jets, has seen a surge in demand for aftermarket services as a strong rebound in travel and a shortage of new jets prompt airlines to keep their planes in the air for longer.
Its commercial engine business generates more than 70% of its $24bn annual revenue from services. It reaffirmed its forecast for $6bn-$6.5bn in adjusted operating profit in 2024 and more than $5bn in free cash flow.
GE Aerospace said it would pursue M&A deals with a “disciplined” approach and prioritise investments in research & development.
Reuters
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