The company posted total revenues of $ 20.524 billion, a decrease of 8% from 12 months ago. On an adjusted per share basis, the company earned 5 cents. This is below a Refinitiv estimate of 8 cents per share.
“The impact of COVID-19 significantly compromised our first quarter results, particularly in aviation, where we saw a dramatic drop in commercial aerospace as the virus spread worldwide in March” said CEO Larry Culp in a statement.
As global travel stops, General Electric’s aviation operations saw their revenues fall 13% to $ 6.892 billion on an annual basis during the quarter, with profits down 39% to 1.005 billion against 1.66 billion dollars in the division. Orders also fell 14%. The company’s electricity and renewable energy businesses also experienced lower revenues in the first quarter.
Scott Mlyn | CNBC
GE’s healthcare segment, however, saw revenues increase 7% to $ 5.292 billion and profits to reach $ 896 million, compared to $ 781 million for the same period the previous year. The company cited “high demand for products used in the diagnosis and treatment of COVID-19”.
Culp said the company is considering cost reductions of more than $ 2 billion as well as $ 3 billion in cash conservation to cushion the blow from the coronavirus. The release of GE’s results also said the industry giant expects this quarter to be worse than the first.
“The second quarter will be the first full quarter under pressure from COVID-19, and GE expects its financial results to decrease sequentially,” said GE.
General Electric’s shares traded 2.2% lower in the pre-market. GE shares lost about 40% of their value this year until Tuesday.
The company announced earlier this month that it is withdrawing its 2020 forecast. The company also said its cash and cash equivalents assets exceed $ 47 billion, as well as a revolving credit facility of 15 billion dollars to overcome the virus-induced recession.
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