Technicians construct LEAP engines for jetliners at a brand new, extremely automated Common Electrical (GE) manufacturing facility.Alwyn Scott | Re
Technicians construct LEAP engines for jetliners at a brand new, extremely automated Common Electrical (GE) manufacturing facility.
Alwyn Scott | Reuters
General Electric continues to burn money at its aviation enterprise, because the grounding of Boeing’s top-selling 737 Max prompted GE to delay manufacturing of engines for the plane.
This yr, GE has logged important working capital losses from headwinds to its enterprise, with Chief Monetary Officer Jamie Miller telling shareholders on Wednesday “a giant chunk of that’s the 737 Max.” GE manufactures the LEAP engines used for the 737 Max, which has been grounded worldwide following two lethal crashes up to now yr.
“We nonetheless count on this yr to be impacted to the tune of about damaging $1.four billion,” Miller mentioned of delays in plane engine manufacturing through the firm’s third-quarter earnings name.
Nonetheless, GE’s key aviation enterprise logged an 8% increase in revenue during the third quarter from the identical interval final yr, climbing to $8.1 billion from $7.5 billion. That is partially as a result of the corporate offered 455 LEAP engines through the quarter, 50% greater than a yr earlier.
“As we take into consideration 2020, I feel we will attempt to comply with Boeing’s lead right here,” CEO Larry Culp mentioned. “Once we discuss concerning the full-year money headwinds this yr as a result of Max that clearly assumes that we do not see a return to service this yr.”
GE’s present…