Thursday, July 24, 2014

General Electric's Aviation Growth Prospects

The aviation sector has been a standout performer for General Electric  in recent years, and the evidence suggests that Fools can expect more to come in the future. Near-term and mid-term indicators look positive, even as Pratt & Whitney, a unit of United Technologies , is competing hard with General Electric for new engine orders on the revamped Airbus A320 plane. General Electric's engines remains well placed on Boeing and Airbus programs, and its services revenues also look set to turn upwards. Moreover, industry trends remain positive, and the the aviation segment looks set to be a strong contributor to profits for years to come.

What aviation means to General Electric
A quick look at General Electric's industrial segment profit in 2013 demonstrates the growing importance of the aviation unit. Interested Fools can read an article focused on the oil and gas segment here.

Source: General Electric Presentations.

The aviation segment generated nearly $22 billion in revenue in 2013, with its commercial aerospace-based revenue significantly larger than its military business