About GE Aviation Muskegon

From turbines and oilfield equipment, to aircraft engines and power plants, General Electric (GE) is plugged in to industrial equipment businesses that shape the modern world. The company produces aircraft engines, locomotives and other transportation equipment, generators and turbines, and oil and gas exploration and production equipment. GE also is a major healthcare products provider. GE still owns GE Capital, but has gradually divested the majority of its non-industrial business assets. To accelerate growth for its oil and gas business, in 2017 GE spent $25 billion to acquire Baker Hughes and merged it with its GE Oil & Gas division.

Operations

GE's raison d'etre has traditionally been its industrial products. The company has shuffled its organizational structure several times, but its long-term goal is to specialize in industrial manufacturing. Currently, the company divides its operations across several segments: Capital, Healthcare, Aviation, Power, Oil & Gas, Renewable Energy, Energy Collections & Lighting, and Transportation.

Power is its largest segment, accounting for almost 25% of its total revenue. This is followed by Aviation (above 20%), Healthcare (about 15%), and Energy Connections & Lighting (more than 10%). In addition, Oil & Gas and Capital each account for about 10%, while Renewable Energy and Transportation account for the remainder.

In a key strategic move to compete with other digital leaders in the marketplace, GE in late 2015 created GE Digital. The new division is focused on assisting in the market development of its digital product offerings across all its segments through software design, fulfillment and product management, while also interfacing with its customers. Digital revenues include software-enabled product upgrades, internally developed software (including Predix), and associated hardware, and software-enabled productivity products.

To focus solely on its industrial and new digital offerings, GE in 2016 sold its former appliance business to China-based appliance manufacturer Qingdao Haier Co. for $5.6 billion. In addition, since 2015, GE has gradually reduced the size of its GE Capital segment, only retaining financial assets as they pertain to the industrial or digital spheres.

Geographic Reach

GE has 185 manufacturing plants in some 40 states in the US and Puerto Rico; it also operates about 325 plants in 40 other countries. Its vast operations are located in Africa, the Americas, Asia, Australia, Europe, and the Middle East. The company serves customers in about 180 countries and generates more the half of its revenue from international markets.

Financial Performance

GE's revenue climbed 5% from $117 billion in 2015 to $124 billion in 2016. This was mainly fueled by increases from its Power (25%) and Renewable Energy (44%) segments.

GE's revenue growth for 2016 was also driven by a 6% spike in Industrial revenue, which included the net effects of acquisitions of $11.2 billion, offset by the net effects of dispositions of $5.6 billion and the unfavorable effects of a stronger US dollar of $0.8 billion. The surge in Renewable Energy revenue in 2016 was fueled by growing global demand for wind turbines which resulted in the shipping of 420 more onshore wind turbines than in the prior year, as well as higher sales from the effects of its Alstom acquisition.

GE reported a net loss of more than $6 billion in 2015. The huge net loss was due to $7.4 billion loss from discontinued operations. However, GE was able to post net income of $8.8 billion in 2016 due to decreased charges of about $6.7 billion associated with its 2015 GE Capital Exit Plan.

In addition, GE has experienced declines in operating cash flow over the years and posted negative cash flow of $244 million in 2016. This was due to about $6.3 billion in cash it spent on discontinued operations primarily related to its GE Capital Exit Plan.

Strategy

GE's leadership team is not shy about making sweeping changes, whether by divesting underperforming segments or investing in probable growth industries. As a result, GE has been growing in such areas as biotech, renewable energy, nanotechnology, and digital technology, while divesting its financial, appliance, and other non-core businesses.

To focus on its higher-margin businesses, GE in late 2017 agreed to sell its Industrial Solutions business to European rival ABB for $2.6 billion. Industrial Solutions makes circuit breakers, switchgear, and power supply equipment for facilities including data centers, and ABB’s portfolio includes a similar suite of products.

As part of its strategy to focus on its industrial and digital operations, the company announced in mid-2015 that it would be selling its GE Capital business (which included its banking, real estate, and leasing operations) and other non core assets. The majority of this process was completed in 2016, when GE sold $26.5 billion of real estate assets (which included factories, commercial loans, and apartment complexes) to Wells Fargo bank and private equity firm Blackstone.

In 2016, GE sold its appliance business to China-based appliance manufacturer Qingdao Haier Co. for $5.6 billion. GE shed its consumer-facing appliance operations to focus on more lucrative industrial manufacturing products such as jet engines, industrial power systems, and locomotives.

Mergers and Acquisitions

Over the years, GE has made significant acquisitions to solidify its position atop the diversified industrial leadership board.

In its largest acquisition to date, GE in 2017 purchased Baker Hughes for $25 billion and merged it into its existing oil and gas assets. The combined entity is called Baker Hughes, a GE Company and is publicly traded. GE owns about 63% of the entity and legacy Baker Hughes shareholders own the remaining amount.

In a significant move to bolster its growing GE Digital operations, GE in early 2017 purchased ServiceMax, a provider of cloud-based field service management (FSM) technology, for $915 million. The acquisition gave GE Digital new capabilities in the $1 trillion market for industrial service, enabling customers to glean more value from their assets and find greater efficiency in their field service processes.

Also in 2017, GE obtained LM Wind Power, a Denmark-based technology developer and manufacturer of rotor blades for the wind industry, for almost $1.7 billion. The major transaction deepened GE's capabilities and scope within the burgeoning renewable energy sector. The company plans for LM Wind's technology and blade engineering capabilities to improve its own overall wind turbine performance, lowering the cost of electricity and increasing the value for its customers.

In late 2015, GE acquired the power assets of France's Alstom for about $10 billion. The significant deal expanded GE's global base of power-generating turbines. It also provided the company with access to expected growth in emerging markets as most of the global markets switch to cleaner power plants.

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GE Aviation Muskegon

2034 Latimer Dr
Muskegon, MI 49442-6232
Phone: 1 (231) 777-2685
Fax: 1 (231) 773-1397

Stats

  • Employer Type: Public
  • Engineer: Gene Bordeaux
  • Director of Human Resources, Manager: Kurt Evans
  • Director of Engineer: Jesse Martka
  • Employees: 600

Major Office Locations

  • Muskegon, MI