GE’s Profits Rise but Sales Miss Forecasts

GE’s renewables division also booked a sales drop while the power business was flat. A GE offshore wind turbine.

Photo: sebastien salom-gomis/Agence France-Presse/Getty Images

Oct. 26, 2021 7:17 am ET

General Electric Co. GE 1.20% reported stronger profits as cost cutting offset lower-than-expected sales of its industrial equipment in the September quarter.

Revenue increased in the company’s jet engine business as travel rebounded from the start of the pandemic, but sales declined in its healthcare business from supply-chain shortages. The renewables division also booked a sales drop while the power business was flat.

Overall revenue fell 1% from a year ago to $18.43 billion, while GE’s expenses declined 7%. Wall Street analysts were expecting revenue to increase 4% to $19.3 billion, according to FactSet.

“The teams are managing through a challenging operating environment,” including supply chain disruptions and uncertainty around U.S. tax credits for onshore wind farms, CEO Larry Culp said in a press release.

GE’s quarterly profits came in ahead of Wall Street’s expectations and the manufacturer raised its earnings goals for the full year. It also narrowed the forecast for free cash flow from its industrial business, a closely watched metric.