NEW YORK: General Electric reported a drop in fourth-quarter revenues Tuesday on a mixed performance across its industrial businesses but projected higher sales in 2022 despite inflation.
The US conglomerate, which plans to split into three separate companies, cited supply chain problems as a drag in its health care business, while uncertainty over a key US tax credit weighed on its renewable energy business.
GE reported a drop in its power division, but an increase in aviation, which is expected to recovery further in 2022.
The company reported a loss of $3.9 billion for the quarter, due to accounting for debt extinguishment.
Revenues fell three percent to $20.3 billion and came in below analyst expectations.
GE projected a return to revenues growth in 2022 behind a jump of more than 20 percent in aviation, coupled with mid-single-digit growth in healthcare and some growth in renewable energy and power.
But the company said it is "planning for continued inflation challenges, with the most adverse impact expected in onshore wind."
GE, an industrial conglomerate pioneer, to break up
Under Chief Executive Larry Culp, GE has announced plans to split up into three companies focused on aviation, healthcare and energy.
The company has trimmed $87 billion in debt in three years following reorganizations and divestitures.
Culp said the company is "seeing real momentum and opportunities for sustainable profitable growth."
Shares fell 3.1 percent to $93.90 in pre-market trading.
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