General Electric (NYSE:GE) raised its 2023 outlook for profit and cash flow as it prepares to complete its three-way demerger in the first half of next year.
Shares jumped 6.3% Tuesday afternoon as the conglomerate said revenue in the three months to September 30 soared 20% to $17.35 billion from $14.47 billion the year before.
Attributable net earnings from continuing operations totaled $84 million, swinging from a loss of $313 million a year earlier, while adjusted EPS of $0.82 compared to a loss per share of $0.17 before.
The Boston, Massachusetts-based outfit said: "At GE Aerospace, we continue to experience rapid growth driven by robust demand and solid execution, largely in Commercial Engines & Services. At GE Vernova, our Grid and now Onshore Wind businesses were both profitable this quarter and we expect their performance to continue to improve.”
GE has already spun off its healthcare arm, establishing New York-listed GE HealthCare Technologies Inc, and intends to split its two remaining units, GE Aerospace and energy business GE Vernova, in the second quarter of next year.
“With our two largest Renewable Energy businesses delivering and Power's continued strength, we remain highly confident in GE Vernova's spin-off next year,” GE said.
Chair and chief executive Lawrence Culp was pleased with the results, describing them as “very strong.”
"It's been nearly two years since we announced our plan to create three independent, investment-grade, industry leaders. We're now closing in on our final step-spinning off GE Vernova and launching GE Aerospace, following the successful spin-off of GE HealthCare earlier this year,” Culp added.
Looking to the rest of 2023, GE now expects "low teens" organic revenue growth, boosting its outlook from expectations of a "low-double-digit" climb.
It forecast adjusted EPS between $2.55 and $2.65, ahead of its previous $2.10 to $2.30 prediction.