GE Aerospace rings the opening bell at NYSE, trading under ticker 'GE'
Over the last several years, GE has taken steps to significantly strengthen the business, including more than $100 billion in debt reduction since 2018
image for illustrative purpose
Hyderabad: GE Aerospace announced its official launch as an independent public company on Tuesday, following the completion of the GE Vernova spin-off. The company will trade on the New York Stock Exchange (NYSE) under the ticker “GE”. Today, on April 2, 2024, at 9:30 a.m. ET, GE Aerospace and GE Vernova will ring the opening bell together at the NYSE.
GE Aerospace Chairman and CEO H. Lawrence Culp Jr. stated, “With the successful launch of three independent, public companies now complete – today marks a historic final step in the multi-year transformation of GE. I am tremendously proud of our team, their resilience, and their dedication to achieving this defining moment.”
Culp added, “Building on a century of learning and carrying forth GE’s legacy of innovation, GE Aerospace moves forward with a strong balance sheet and greater focus to invent the future of flight, lift people, and bring them home safely. With FLIGHT DECK, our proprietary lean operating model, as our foundation, I am confident we will realize our full potential in service of our customers, employees, and shareholders.”
GE Aerospace launches as an established global leader in propulsion, services, and systems with an installed base of approximately 44,000 commercial engines and approximately 26,000 military and defence engines around the world. The company generated approximately $32 billion in adjusted revenue in 2023, with 70 per cent generated by services and the strong economics of the engine aftermarket.
At the company’s Investor Day in March, GE Aerospace reaffirmed its 2024 guidance and presented a longer-term financial outlook, including expecting to achieve $10 billion of operating profit in 2028. Additionally, GE Aerospace shared a capital allocation framework to invest in growth and innovation, while also returning approximately 70-75 per cent of available funds to shareholders.
The launch of GE Aerospace represents the completion of GE’s multi-year financial and operational transformation. Over the last several years, GE has taken steps to significantly strengthen the business, including more than $100 billion in debt reduction since 2018. Simultaneously, the company-wide implementation and adoption of lean and a relentless pursuit of continuous improvement in the service of the customer enabled a deep and sustainable shift in culture. This stronger foundation enabled the successful creation of three independent companies – GE HealthCare, GE Vernova, and GE Aerospace – each of which is now well-positioned to build upon GE’s history of innovation.
Holders of GE common stock were entitled to receive one share of GE Vernova common stock for every four shares of GE common stock. For United States federal income tax purposes, the distribution has been conducted in a tax-efficient manner for GE shareholders in the United States.
Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as legal counsel. Evercore, Morgan Stanley, and PJT Partners were the lead financial advisors to GE on the transaction. The Company also received legal advice from DLA Piper and Gibson, Dunn & Crutcher LLP and financial advice from Citibank, The Consello Group, BNP Paribas, and UBS.
GE Aerospace will issue its first quarter 2024 earnings on April 23, 2024.
