{"id":112893,"date":"2021-04-26T16:53:20","date_gmt":"2021-04-26T16:53:20","guid":{"rendered":"https:\/\/fin2me.com\/?p=112893"},"modified":"2021-04-26T16:53:20","modified_gmt":"2021-04-26T16:53:20","slug":"ges-recovery-seen-poised-to-gather-pace","status":"publish","type":"post","link":"https:\/\/fin2me.com\/markets\/ges-recovery-seen-poised-to-gather-pace\/","title":{"rendered":"GE's recovery seen poised to gather pace"},"content":{"rendered":"

CHICAGO (Reuters) – General Electric Co\u2019s turnaround plans looked dead in the water to many last spring when its lucrative jet engine business became another victim of the coronavirus pandemic as global air travel dried up.<\/p>

FILE PHOTO: A GE 1.6-100 wind turbine (front R) is pictured at a wind farm in Tehachapi, California June 19, 2013. REUTERS\/Mario Anzuoni <\/figcaption>

Shares of the Boston-based industrial conglomerate lost half of their value in the early days of the pandemic. Declining sales put GE, which was already grappling with crushing debt levels and operating challenges, into survival mode – a quick change in focus from investing in profitable growth opportunities.<\/p>\n

Since last May, GE\u2019s shares have gained over 145%, outperforming the broader market, as more investors bet its turnaround is gaining traction. They also expect that its businesses in natural gas, wind turbines and renewables will get a big boost as nations and corporations make the transition to a low-carbon economy.<\/p>\n

\u201cThe long-term earnings potential for this company are dramatically higher,\u201d said Dan Babkes, a partner at Pzena Investment Management that has a substantial holding in GE.<\/p>\n

Analysts at William Blair expect GE\u2019s valuation to double over the next three to four years.<\/p>\n

On Tuesday, GE\u2019s first quarter earnings report should offer evidence to back such bullish bets. Even though the company has forecast a cash outflow, it expects \u201csignificant\u201d improvement from a year ago when it burnt $2.2 billion in cash.<\/p>\n

The improvement would come at a time when its jet-engine business, usually GE\u2019s cash cow, is still reeling from the plunge in global air travel.<\/p>\n

Analysts surveyed by Refinitiv, on average, expect GE to report a cash outflow of $1.3 billion.<\/p>\n

Free-cash flow is closely watched by investors as a sign of the health of GE\u2019s operations and ability to pay down debt.<\/p>

Slideshow ( 2 images )<\/span><\/figcaption>

Since taking the reins in 2018, Chief Executive Larry Culp has sold assets to repair the balance sheet, including a $30 billion deal to merge the company\u2019s jet-leasing unit with Ireland\u2019s AerCap. GE now expects to reduce overall debt by $95 billion by 2023.<\/p>\n

Culp says a \u201csignificantly\u201d derisked balance sheet would allow GE to fund accelerated organic growth.<\/p>\n

He has also focused on lean-manufacturing practices aimed at eliminating waste and building profit margins.<\/p>\n

Babkes says the cost focus and restructuring has prepared GE\u2019s aviation business for a \u201cdramatic\u201d bounce-back in earnings as air travel recovers.<\/p>\n

Similarly, upcoming earnings reports should reflect the restructuring at GE\u2019s power and renewables units.<\/p>\n

\u201cYour financial statements today reflect the execution of historical deals,\u201d Babkes said. \u201cYour financial statements tomorrow are going to reflect the cost base that you\u2019ve achieved with restructuring.\u201d<\/p>\n

GE also stands to gain from the green energy transition. The company will supply wind turbines for one of the largest onshore wind farm projects in the United States. Demand has been growing for its new offshore Haliade-X turbines.<\/p>\n

GE aims to sell $3 billion in offshore turbines by 2024 from less than $500 million last year, forecasting that the offshore wind energy market will grow at a compound rate exceeding 20% for the next 10 years.<\/p>\n

William Blair\u2019s analysts estimate more than half of GE\u2019s sales by the middle of this decade should come from converting gas turbine power generation to operate on hydrogen and renewables, and grid upgrades.<\/p>\n

\u201cIn our view, GE\u2019s prospects for sustainable outperformance have never been more apparent in recent times,\u201d they said in a note.<\/p>\n

Source: Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

CHICAGO (Reuters) – General Electric Co\u2019s turnaround plans looked dead in the water to many last spring when its lucrative jet engine business became another […]<\/p>\n","protected":false},"author":3,"featured_media":112892,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"yoast_head":"\nGE's recovery seen poised to gather pace - Fin2me<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fin2me.com\/markets\/ges-recovery-seen-poised-to-gather-pace\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"GE's recovery seen poised to gather pace - Fin2me\" \/>\n<meta property=\"og:description\" content=\"CHICAGO (Reuters) – General Electric Co\u2019s turnaround plans looked dead in the water to many last spring when its lucrative jet engine business became another [...]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/fin2me.com\/markets\/ges-recovery-seen-poised-to-gather-pace\/\" \/>\n<meta property=\"og:site_name\" content=\"Fin2me\" \/>\n<meta property=\"article:published_time\" content=\"2021-04-26T16:53:20+00:00\" \/>\n<meta name=\"author\" content=\"Mark\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/fin2me.com\/wp-content\/uploads\/2021\/04\/GEs-recovery-seen-poised-to-gather-pace.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Mark\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/fin2me.com\/markets\/ges-recovery-seen-poised-to-gather-pace\/\",\"url\":\"https:\/\/fin2me.com\/markets\/ges-recovery-seen-poised-to-gather-pace\/\",\"name\":\"GE's recovery seen poised to gather pace - Fin2me\",\"isPartOf\":{\"@id\":\"https:\/\/fin2me.com\/#website\"},\"datePublished\":\"2021-04-26T16:53:20+00:00\",\"dateModified\":\"2021-04-26T16:53:20+00:00\",\"author\":{\"@id\":\"https:\/\/fin2me.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a\"},\"breadcrumb\":{\"@id\":\"https:\/\/fin2me.com\/markets\/ges-recovery-seen-poised-to-gather-pace\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/fin2me.com\/markets\/ges-recovery-seen-poised-to-gather-pace\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/fin2me.com\/markets\/ges-recovery-seen-poised-to-gather-pace\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/fin2me.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Markets\",\"item\":\"https:\/\/fin2me.com\/category\/markets\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"GE's recovery seen poised to gather pace\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/fin2me.com\/#website\",\"url\":\"https:\/\/fin2me.com\/\",\"name\":\"Fin2me\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/fin2me.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/fin2me.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a\",\"name\":\"Mark\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/fin2me.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/39b72719fb75a2d3c7d7695026648602?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/39b72719fb75a2d3c7d7695026648602?s=96&d=mm&r=g\",\"caption\":\"Mark\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"GE's recovery seen poised to gather pace - Fin2me","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/fin2me.com\/markets\/ges-recovery-seen-poised-to-gather-pace\/","og_locale":"en_US","og_type":"article","og_title":"GE's recovery seen poised to gather pace - Fin2me","og_description":"CHICAGO (Reuters) – General Electric Co\u2019s turnaround plans looked dead in the water to many last spring when its lucrative jet engine business became another [...]","og_url":"https:\/\/fin2me.com\/markets\/ges-recovery-seen-poised-to-gather-pace\/","og_site_name":"Fin2me","article_published_time":"2021-04-26T16:53:20+00:00","author":"Mark","twitter_card":"summary_large_image","twitter_image":"https:\/\/fin2me.com\/wp-content\/uploads\/2021\/04\/GEs-recovery-seen-poised-to-gather-pace.jpg","twitter_misc":{"Written by":"Mark","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/fin2me.com\/markets\/ges-recovery-seen-poised-to-gather-pace\/","url":"https:\/\/fin2me.com\/markets\/ges-recovery-seen-poised-to-gather-pace\/","name":"GE's recovery seen poised to gather pace - Fin2me","isPartOf":{"@id":"https:\/\/fin2me.com\/#website"},"datePublished":"2021-04-26T16:53:20+00:00","dateModified":"2021-04-26T16:53:20+00:00","author":{"@id":"https:\/\/fin2me.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a"},"breadcrumb":{"@id":"https:\/\/fin2me.com\/markets\/ges-recovery-seen-poised-to-gather-pace\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/fin2me.com\/markets\/ges-recovery-seen-poised-to-gather-pace\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/fin2me.com\/markets\/ges-recovery-seen-poised-to-gather-pace\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/fin2me.com\/"},{"@type":"ListItem","position":2,"name":"Markets","item":"https:\/\/fin2me.com\/category\/markets\/"},{"@type":"ListItem","position":3,"name":"GE's recovery seen poised to gather pace"}]},{"@type":"WebSite","@id":"https:\/\/fin2me.com\/#website","url":"https:\/\/fin2me.com\/","name":"Fin2me","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/fin2me.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/fin2me.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a","name":"Mark","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/fin2me.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/39b72719fb75a2d3c7d7695026648602?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/39b72719fb75a2d3c7d7695026648602?s=96&d=mm&r=g","caption":"Mark"}}]}},"_links":{"self":[{"href":"https:\/\/fin2me.com\/wp-json\/wp\/v2\/posts\/112893"}],"collection":[{"href":"https:\/\/fin2me.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fin2me.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fin2me.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/fin2me.com\/wp-json\/wp\/v2\/comments?post=112893"}],"version-history":[{"count":0,"href":"https:\/\/fin2me.com\/wp-json\/wp\/v2\/posts\/112893\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/fin2me.com\/wp-json\/wp\/v2\/media\/112892"}],"wp:attachment":[{"href":"https:\/\/fin2me.com\/wp-json\/wp\/v2\/media?parent=112893"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fin2me.com\/wp-json\/wp\/v2\/categories?post=112893"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fin2me.com\/wp-json\/wp\/v2\/tags?post=112893"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}