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General Electric Company is one of the largest and most diversified technology and financial services corporations in the world.
With products and services ranging from aircraft engines, power generation, water processing, and household appliances to medical imaging, business
and consumer financing and industrial products, the company serves customers in more than 100 countries and employs approximately 305,000 people worldwide.
Effective January 1, 2011, GE reorganized its former Technology Infrastructure segment into three segments – Aviation, Healthcare and Transportation.
On December 21, 2012, GE announced an agreement to purchase the aviation business of Avio S.p.A.,
an Italian manufacturer of aviation propulsion components and systems. On August 1, 2013, GE completed the $4.45 billion acquisition.
In the first quarter of 2013, GE Aviation committed to selling certain of its machining & fabrication businesses.
GE completed the $108 million sale on December 2, 2013.
General Electric is headquartered in Fairfield, Connecticut and incorporated in the state of New York.
General Electric operates through six principal business segments:
• Power & Water
• Oil & Gas
• Energy Management
• Aviation
• Healthcare
• Transportation
• Appliances & Lighting
• GE Capital.
In the following, only the Aviation segment is presented (as our website is aerospace & defense focused).
GE Aviation produces, sells and services jet engines, turboprop and turbo shaft engines, and related replacement parts for use in military and
commercial aircraft. The company's military engines are used in a wide variety of aircraft including fighters, bombers, tankers, helicopters
and surveillance aircraft, as well as marine applications, and the company’s commercial engines power aircraft in all categories of range:
short/medium, intermediate and long-range, as well as executive and regional aircraft.
GE Aviation also produces and markets engines through
CFM International, a company jointly owned by GE and Snecma, a subsidiary of SAFRAN of France, and Engine Alliance, LLC, a company jointly
owned by GE and the Pratt & Whitney division of
United Technologies Corp.
New engines are also being designed and marketed in a joint venture with Honda Aero, Inc., a division of Honda Motor Co., Ltd.
GE Aviation is party to agreements in which the financial results, as well as production responsibilities, of certain aircraft and marine
engine lines are shared. These agreements take the form of both joint ventures and revenue sharing programs.
Joint ventures market and sell particular aircraft engine lines, but require negligible direct investment because the venture parties
conduct essentially all of the development, production, assembly and aftermarket support activities. Under these agreements,
GE Aviation supplies certain engine components and retains related intellectual property rights.
The CFM56
engine line is the product of CFM International and the GP7000 engine line is the product of Engine Alliance, LLC.
Revenue sharing programs are a standard form of cooperation for specific product programs in the aviation industry.
These programs are controlled by Aviation, but counterparties (with interests ranging from 1% to 39%)
have an agreed share of revenues as well as development and component production responsibilities.
GE Aviation also produces global aerospace systems and equipment, including airborne platform computing systems, power generation and
distribution products, mechanical actuation products and landing gear, plus various engine components for use in both military and
commercial aircraft.
GE Aviation provides maintenance, component repair and overhaul services (MRO), including sales of replacement parts for many models of
engines and repair and overhaul of engines manufactured by competitors. These MRO services are often provided under long-term maintenance contracts.
The worldwide competition in aircraft jet engines and MRO (including parts sales) is intense. Both U.S. and export markets are important.
Product development cycles are long and product quality and efficiency are critical to success. Research and development expenditures are
important in this business, as are focused intellectual property strategies and protection of key aircraft engine design, manufacture,
repair and product upgrade technologies. The company’s products and services are subject to a number of regulatory standards.
Potential sales for any engine are limited by, among other things, its technological lifetime, which may vary considerably depending
upon the rate of advance in technology, the small number of potential customers and the limited number of relevant airframe applications.
Aircraft engine orders tend to follow military and airline procurement cycles, although these cycles differ from each other.
GE Aviation is one of the world's leading providers of jet engines and related services with operations in North America, Europe, Asia and South America.
GE Aviation generated revenues of $23,298 million in 2014 (20.2% of GE's non-capital revenues), compared to $21,411 million (19.1%), and $19,322 million (17.4%)
in 2013 and 2012, respectively.
Financial results for General Electric's Aviation segment were as follows:
The increase in revenues was due to higher volume and higher prices driven by Commercial Engines volume, spare parts volume
and the third-quarter 2013 acquisition of Avio.
The increase in profits was mainly due to higher prices in the company's Commercial Engines and Commercial Services businesses
and higher volume as discussed above. These increases were partially offset by effects of inflation and negative business mix.
Revenues ('14): $115,356M +2.9% |
R&D ('14): $4,233M -8.8% |
Net Profit ('14): $15,183M +14.2% |
CAPEX ('14): $3,970M +7.9% |
Aerospace Sector:Aircraft Engines; Avionics; Motion & Flow Control |
GE Aviation - Products:GE Aviation designs, develops and manufactures aircraft turbofan engines, turbojet engines, turboprop and turboshaft engines; Marine turbine engines; Turbine modules; Combustors, frames and cases; Aluminum and magnesium castings; Flight management systems; Displays; Aviation computing systems; Power generation and distribution products; Mechanical actuation products; Landing gear; Thrust reverser actuation systems; Control electronics, motors, high power mechanical transmissions and actuators; Propeller systems; Wing, leading and trailing edge assemblies; Flight control surfaces; Empennage components; Fairings; Nacelles; Aerial refueling systems. |
GE's Major DoD Defense Programs:
| C-17
| C-130J Hercules
| |
GE's Commercial Programs:| Airbus: A318, A319, A320, A321, A330, A350 XWB, A380 | |
| Sales 2010-2014 | Net Income 2010-2014 | R&D Spending 2010-2014 | # Employees 2010-2014 |
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