GE boosts full-year forecasts on strong first quarter

US industrial group General Electric bolstered its full-year outlook on Tuesday, following a strong first quarter.

The firm said total orders rose 25% in the three months to March end to $17.6bn, while revenues increased 14% to $14.5bn, or by 17% on an organic basis.

The performance was driven by its aerospace division, where revenues jumped 25% to $7bn. In its energy unit, GE Vernova, renewable revenues eased 1% to $2.8bn, but power revenues rose 9% to $3.8bn.

As a result, GE raised the lower end of its ranges for full-year adjusted earnings per share and free cash flow. It now expects adjusted EPS of between $1.70 and $2.00, and free cash flow of $3.6bn to $4.2bn, compared to $1.60 and $3.4bn previously.

Lawrence Culp, chief executive, called it an "encouraging" start to the year, adding: "Our results reflect robust market demand and our progress operating leaner and more focused businesses."

Once one of the world’s biggest conglomerates, GE launched a significant restructuring after losses and debts soared. The last part of the lengthy overhaul will see it spin out GE Vernova next year, leaving it a pure play aerospace company.

Culp said: "GE is creating significant value today and tomorrow as we prepare to stand up these leading franchises as independent companies sometime in early 2024."

As at 1245 BST, shares in GE were ahead 1% in pre-market trading.