GE (NYSE:GE) recently released its 2021 Annual Report detailing its focus areas and performance in the past year, as well as plans for the future including its transformation progress. This will reflect in business operations across its markets including the Middle East. This week, GE also held the 2022 Investor Day, during which members of the leadership team outlined GE’s strategy to drive innovation and profitable growth and provided details on the company’s outlook for 2022 and beyond.

The below is a summary of key points from both the annual report and the investor day to keep you informed on GE’s financials, operations, and its development strategy. Moving forward, regular updates will be sent to you as GE focuses on forming three global companies focused on aviation, healthcare, and energy, and how this will impact the region.

Highlights from the report & investor day

  • GE is forming three independent, investment-grade industry companies focused on the growth sectors of aviation, healthcare, and energy with sustainability at its core. Steps to transition are:
    • In early 2023, pursuing a tax-free spin-off of GE Healthcare, creating a pure-play company at the center of precision health. GE expects to retain a stake of 19.9%
    • Combining GE Renewable Energy, GE Power, and GE Digital into one business, positioned to lead the energy transition, and then pursuing a tax-free spin-off of this business in early 2024
    • Following these transactions, GE will be an aviation-focused company shaping the future of flight
  • In addition to positioning each business to deliver long-term growth and create value for its stakeholders, each standalone company will have greater focus and flexibility to better serve customers across regions, respond to industry dynamics, and build deep domain expertise within their industries.
  • In 2021, GE’s continued efforts drove sustainable, impactful improvements in safety, quality, delivery, cost, and cash management.
  • GE Aviation will continue to focus on recovery while actively managing the impact of industry-wide material and labor availability challenges due to COVID-19.
  • GE Healthcare proactively managed costs, sourcing, and logistics to deliver solid performance; orders and organic revenue were up, and margins expanded 70 basis points organically.
  • GE’s energy business will be more selective about new business and more disciplined on cost in order to continue to improve business performance and lead the energy transition in the long-term. GE Gas Power has stabilized, Steam Power continues to exit the new-build coal power market, Power Conversion grew by double digits, and GE Hitachi Nuclear is partnering with customers on the next generation of nuclear technologies.
  • This year, GE will remain focused on the customer; and will eliminate waste to deliver more value to its customers, particularly in the region.
  • As the company puts decision-making closer to its customers, GE will become more accountable and transparent, as a result delivering better results.
  • As a company with momentum, GE is positioned to succeed in the biggest transformation in its history. Each of the three independent companies will benefit from greater accountability, team alignment, and capital allocation flexibility to enable a more sustainable, healthier, and connected future.
  • GE has reaffirmed its $5.5-$6.5 billion free cash flow outlook for 2022 and more than $7 billion in 2023
  • GE is positioned to create value today through:
    • Strong franchises – leading positions in critical sectors, differentiated technology, global reach
    • Being run better for the long term, today – a team with deep domain expertise and resilience; a focus on lean leading to sustainable improvements in safety, quality, delivery, cost (SQDC); and decentralization, bringing decision-making & accountability closer to the customer
    • Deliver better results for shareholders, today and tomorrow – Through sustainable financial performance, solid balance sheet and cash position, and three companies positioned to realize their full potential

What’s next for the Middle East

  • As the transition commences globally, business continuity will be the critical focus for GE in the region.
  • The company will work closely with its partners to ensure transitions will happen as smoothly as possible across regions, including the Middle East.
  • With a long-standing presence, deep commitment, GE is in a strong position to lead in these three important sectors, which continue to play a key role in the economic future of the region.

Source References

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For media enquiries, please contact:
Kirsten Kutz
Communications Director
GE Corporate
Kirsten.Kutz@ge.com 
Nivine William | Nisha Celina
ASDA’A BCW | Arab Youth Survey
nivine.william@bcw-global.com
nisha.celina@bcw-global.com