General Electric (GE)

General Electric (NYSE:GE) | Products & Business Segments

Top Menu Background

General Electric Company is one of the largest and most diversified technology and financial services corporations in the world. With products and services ranging from aircraft engines, power generation, water processing, and household appliances to medical imaging, business and consumer financing and industrial products, the company serves customers in more than 100 countries and employs approximately 301,000 people worldwide. Effective January 1, 2011, GE reorganized its former Technology Infrastructure segment into three segments – Aviation, Healthcare and Transportation. On December 21, 2012, GE announced an agreement to purchase the aviation business of Avio S.p.A., a manufacturer of aviation propulsion components and systems, for $4.3 billion.

General Electric is headquartered in Fairfield, Connecticut and incorporated in the state of New York.

General Electric operates through six principal business segments:

• Energy Infrastructure
• Aviation
• Healthcare
• Transportation
• Home & Business Solutions
• GE Capital.

In the following, only the Aviation segment is presented (as our website focuses on aerospace & defense economics).

GE Aviation

GE Aviation produces, sells and services jet engines, turboprop and turbo shaft engines, and related replacement parts for use in military and commercial aircraft. The company's military engines are used in a wide variety of aircraft including fighters, bombers, tankers, helicopters and surveillance aircraft, as well as marine applications, and the company’s commercial engines power aircraft in all categories of range: short/medium, intermediate and long-range, as well as executive and regional aircraft.

GE Aviation also produces and markets engines through CFM International, a company jointly owned by GE and Snecma, a subsidiary of SAFRAN of France, and Engine Alliance, LLC, a company jointly owned by GE and the Pratt & Whitney division of United Technologies Corp. New engines are also being designed and marketed in joint ventures with Rolls-Royce Group plc and Honda Aero, Inc., a division of Honda Motor Co., Ltd.

GE Aviation is party to agreements in which the financial results, as well as production responsibilities, of certain aircraft and marine engine lines are shared. These agreements take the form of both joint ventures and revenue sharing programs.

Joint ventures market and sell particular aircraft engine lines, but require negligible direct investment because the venture parties conduct essentially all of the development, production, assembly and aftermarket support activities. Under these agreements, GE Aviation supplies certain engine components and retains related intellectual property rights. The CFM56 engine line is the product of CFM International and the GP7000 engine line is the product of Engine Alliance, LLC.

Revenue sharing programs are a standard form of cooperation for specific product programs in the aviation industry. These businesses are controlled by GE Aviation, but counterparties have an agreed share of revenues as well as development and component production responsibilities. At December 31, 2012, such counterparty interests ranged from 1% to 47% of various programs; associated distributions to such counterparties are accounted for as costs of production.

GE Aviation also produces global aerospace systems and equipment, including airborne platform computing systems, power generation and distribution products, mechanical actuation products and landing gear, plus various engine components for use in both military and commercial aircraft.

GE Aviation provides maintenance, component repair and overhaul services (MRO), including sales of replacement parts for many models of engines and repair and overhaul of engines manufactured by competitors. These MRO services are often provided under long-term maintenance contracts.

The worldwide competition in aircraft jet engines and MRO (including parts sales) is intense. Both U.S. and export markets are important. Product development cycles are long and product quality and efficiency are critical to success. Research and development expenditures are important in this business, as are focused intellectual property strategies and protection of key aircraft engine design, manufacture, repair and product upgrade technologies. The company’s products and services are subject to a number of regulatory standards.

Potential sales for any engine are limited by, among other things, its technological lifetime, which may vary considerably depending upon the rate of advance in technology, the small number of potential customers and the limited number of relevant airframe applications. Aircraft engine orders tend to follow military and airline procurement cycles, although these cycles differ from each other. GE Aviation is one of the world's leading providers of jet engines and related services with operations in North America, Europe, Asia and South America.

GE Aviation generated revenues of $19,994 million in 2012 (13.6% of total GE), compared to $18,859 million
(12.8%), and $17,619 million (11.8%) in 2011 and 2010, respectively.

     Financial results for General Electric's Aviation segment were as follows:
Performance of General Electric's principal lines of business

Aviation revenues of $20.0 billion increased $1.1 billion, or 6%, in 2012 due primarily to higher prices ($0.8 billion) and higher volume ($0.4 billion), which were driven by increased commercial and military engine sales.

Segment profit of $3.7 billion increased $0.2 billion, or 7%, in 2012 due primarily to higher prices ($0.8 billion) and higher volume ($0.1 billion), partially offset by higher inflation ($0.3 billion) and lower productivity ($0.3 billion).

Company Information

Revenues ('12): $110,933M +3.8%

R&D ('12): $4,500M -2.2%

Net Profit ('12): $13,801M -3.6%

CAPEX ('12): $3,937M +33.1%

GE Aviation - Tier I

Products News Subsidiaries Acquisitions Competitors Customers R&D Spending 5-Year Financials

Aerospace Sector:

Aircraft Engines; Avionics; Motion & Flow Control

GE Aviation Products:

Aircraft turbofan engines, turbojet engines, turboprop and turboshaft engines; Marine turbine engines; Engine replacement parts; Flight management systems; Displays; Aviation computing systems; Power generation and distribution products; Mechanical actuation products; Landing gear; Engine components; Maintenance, component repair and overhaul (MRO) services; Thrust reverser actuation systems; Control electronics, motors, high power mechanical transmissions and actuators; Propeller systems; Wing, leading and trailing edge assemblies; Flight control surfaces; Empennage components; Fairings; Nacelles; Aerial refueling systems.

GE's Major DoD Defense Programs:

| C-17 | C-130J Hercules | DoD Prime ContractorF-16 | DoD Prime ContractorF/A-18E/F Super Hornet | DoD Prime ContractorEA-18G |
| F-22 Raptor | F-35 Lightning II | HH-60M | Littoral Combat Ship | MH-60R | MH-60S |
| MQ-8B | UH-60 Black Hawk | P-8A Poseidon | RQ-4 Global Hawk | V-22 Osprey |

GE's Commercial Programs:

| Airbus: A318, A319, A320, A321, A330, A340, A350 XWB, A380 |
| Boeing: 737NG, 747, 757, 767, 777, 787 |

Sales 2008-2012 Net Income 2008-2012 R&D Spending 2008-2012 # Employees 2008-2012

Company Performance Company News SEC Filings Press Releases
Products and Business Segments
Competitors and Competition
Research Spending and R&D Activities
Key Raw Materials and Components
Social Networking
Market Data Background
No Flash