Business World

Saturday 23 February 2019

Gecas boost: GE chief says no plans to sell off Shannon-based aviation unit

Technicians prepare an H80 turboprop engine for testing during manufacture at the GE Aviation plant, a unit of General Electric Co., in Prague, Czech Republic
Technicians prepare an H80 turboprop engine for testing during manufacture at the GE Aviation plant, a unit of General Electric Co., in Prague, Czech Republic

General Electric insisted it has not lined up a sale of Gecas, its Shannon-headquartered aviation finance arm, after announcing results that sent shares surging yesterday.

"We have no plans to sell Gecas," GE CEO Larry Culp told investors. Reports had said private equity firm Apollo had approached GE to buy the Irish business.

Shares in General Electric (GE) soared the most in almost a decade as the new chief executive officer, Larry Culp, yesterday detailed his efforts to reduce the company's debilitating debt load, fix the ailing power business and ease lingering uncertainties weighing on the shares.

GE also announced a deal to settle a US Justice Department probe into its defunct subprime-mortgage unit for less than investors had feared.

"We are going to de-lever the balance sheet while we strengthen the underlying operations of the business," Mr Culp said in an interview yesterday after GE reported fourth-quarter earnings.

GE jumped as much as 18pc at one point yesterday after results showed sales rose 5.3pc to $33.3bn (€2.9bn) in the fourth quarter of its financial year, exceeding expectations of $32.3bn.

Bloomberg

Irish Independent

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