GE: margin falls in fourth quarter, but outlook brighter

(CercleFinance.com) - GE said on Tuesday that its adjusted industrial profit margin - a key metric of its profitability - fell to 6.
4% in the fourth quarter, down 4.6 points from the 11% it reported a year ago.

However, the engineering company said it expects its adjusted industrial profit margin to expand organically by more than 250 basis points in 2021, with industrial revenues set to post low-single-digit organic growth.

GE also said it generated an industrial free cash flow of 4.4 billion dollars in the fourth quarter, which CEO Lawrence Culp called a "strong" finish to a challenging year, reflecting improving orders in power and renewable energy.

The company said momentum is now improving across its businesses, citing "leading positions" to capture opportunities in the energy transition, health, and aerospace industry.

The shares jumped over 9% in pre-market trading.

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