GE Aviation

GE Aviation
GE Aviation Image link: https://www.spangdahlem.af.mil/News/Article-Display/Article/294404/spangdahlem-recognizes-powmia-day/
C O N T E N T S:

KEY TOPICS

  • Lufthansa Technik and GE Aviation are among the companies teaming up to focus on new engine types after announcing plans for a Poland-based joint venture operating as XEOS. From 2021, it will service the GE9X engine, expected for a 2020 entry into service powering the Boeing 777X, along with capabilities for the already operational GEnx -2B on the 747-8.(More…)

POSSIBLY USEFUL

  • With Asia-Pacific’s in-service fleet expected to grow at a 5.8% compound annual growth rate according to Aviation Week’s 2018 MRO & Fleet Forecast, along with a projected MRO sector value of $22.5 billion by 2027, the region’s maintenance opportunities are attractive to increasingly service-centric OEMs. (More…)
  • Fortunately, advanced options strategies can rectify many of the stagnation problems associated with the stock and market exposure to GE through covered call options is prudent based on the expectation that these longer-term trends will not be changing any time soon.(More…)
  • The Renewable Energy segmentholds decent growth potential for GE, as a result of the increasing domestic and internationalwind and hydroorders.We expect the segment’stailwinds to provide decent medium-term growth opportunitiesdriven by strong growth in the domestic andinternational onshore wind and hydroorders, and offshore wind orders.(More…)

RANKED SELECTED SOURCES

GENERAL INFO
Lufthansa Technik and GE Aviation are among the companies teaming up to focus on new engine types after announcing plans for a Poland-based joint venture operating as XEOS. From 2021, it will service the GE9X engine, expected for a 2020 entry into service powering the Boeing 777X, along with capabilities for the already operational GEnx -2B on the 747-8. [1]

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KEY TOPICS

Lufthansa Technik and GE Aviation are among the companies teaming up to focus on new engine types after announcing plans for a Poland-based joint venture operating as XEOS. From 2021, it will service the GE9X engine, expected for a 2020 entry into service powering the Boeing 777X, along with capabilities for the already operational GEnx -2B on the 747-8. [1] While the aviation business is expected to grow, thanks to GE’s market dominance in aircraft engines, the power division is expected to continue to languish, which has caused Flannery to reduce guidance for the troubled unit by half a billion dollars. [2]

The top five companies in the CMCs for aircraft engine market – GE Aviation, Pratt & Whitney, Composite Horizons, Safran Herakles, and COI Ceramics Inc. – are expected to remain the dominant players during the forecast period, according to the report. [3] AT&T Internet of Things division is working with GE Aviation to connect the onboard and offboard portions of the Aircraft Health and Trend Monitoring System (AHTMS) powered PlaneConnectHTM on the Gulfstream G500, G600, G650 and G650ER business jets. [4] Shrouds are projected to remain the largest application of CMCs in aircraft engines over the next five years, driven by their use in Leap engines, from CFM International, a joint venture between GE Aviation and Safran Aircraft Engines, in Cincinnati. [3] In fourth-quarter 2017, GE Aviation revenues were flat year over year at $7,222 million, as Equipment revenues (which declined 6% on fewer legacy engine shipments) offset higher LEAP engine shipments. [5]

According to GE Aviation, the AHTMS monitoring system can help speed diagnostics and give more time for notice and scheduling and performing maintenance. [4]

Aviation and Healthcare were the top performers for the conglomerate in the first half of 2018, with revenues growing 10% and 8% year-on-year, respectively.The company’s turnaround could take some time and will depend on an improving business environment and global growth, and accordingly, we expect GE to report mixed results in the next few quarters.Below we provide a brief overview of the company’s results and what lies ahead. [6]

June, 2017 – GE Aviation and AT&T Internet of Things (IoT) solutions have joint venture for on-board and off board portions of the aircraft health and trend monitoring system (AHTMS) powered on PlaneConnectHTM on the Gulfstream G500, G600, G650 and G650ER business jets. [7] Airbus, Boeing, GE Aviation, Rockwell Collins, United Technologies, Accellent Technologies, BeanAir, Meggitt, RSL Electronics, Rolls-Royce Holdings, and Ultra Electronics Holdings and others are some of the prominent players profiled in MRFR Analysis and are at the forefront of competition in the Global Commercial Aircraft Health Monitoring Systems Market. [7] Read employee reviews and ratings on Glassdoor to decide if GE Aviation is right for you. [8]

POSSIBLY USEFUL

With Asia-Pacific’s in-service fleet expected to grow at a 5.8% compound annual growth rate according to Aviation Week’s 2018 MRO & Fleet Forecast, along with a projected MRO sector value of $22.5 billion by 2027, the region’s maintenance opportunities are attractive to increasingly service-centric OEMs. [9] The FAA has developed a set of assumptions and forecasts consistent with the emerging trends and structural changes taking place within the aviation industry. [10] FAA develops the commercial aviation forecasts and assumptions from statistical (econometric) models that explain and incorporate emerging trends for the different segments of the industry. [10]

A SITA report claims half of airlines surveyed will invest in AI and cognitive computing in the next three years, while a recent Aviation Digital Transformation survey saw 37% of respondents identify AI as a key area for investment. [11]

Boeing, in its 2011-2030 market outlook, forecasts demand of over 33,000 aircraft worth $4 trillion in the next 20 years driven by creation of aviation hubs in these regions. [12] The entire aviation industry is keeping a close watch at emerging markets where air travel demand is growing at double digits. [12]

The commercial aviation MRO segment will continue to grow at a strong pace in 2017, according to Aviation Week?s Commercial Aviation Fleet & MRO Forecast. [1] Below are five key trends from Bombardier’s 2017 forecast that are poised to shape commercial aviation over the next 20 years. [13]

GE expects the Leap production rate to nearly double to more than 2,000 engines by 2020. [14] For now, though, the sales of the transportation and healthcare businesses and GE’s stake in Baker Hughes will generate some much-needed cash to shore up the company’s balance sheet — and hopefully avoid further downgrades by ratings agencies — but it leaves GE with nothing left to sell, making it more imperative that the company turn its power segment around. [2]

The Aviation Engines industry analysis is provided for the international markets including development trends, competitive landscape analysis, and key regions development status. [15] The Terminal Area Forecasts ( TAF ) are prepared to meet the budget and planning needs of the FAA and provide information for use by state and local authorities, the aviation industry, and the public. [10]

Fortunately, advanced options strategies can rectify many of the stagnation problems associated with the stock and market exposure to GE through covered call options is prudent based on the expectation that these longer-term trends will not be changing any time soon. [16] General Electric and GE stock should both benefit from that trend as long as GE holds onto its Baker Hughes stake. [17] Despite the constant calls for a “bottom” in the stock, anybody that has looked at a recent price chart knows that General Electric ( GE ) still finds itself in the high weeds. Even with the company?s recent headline beat on quarterly earnings expectations, GE is trading near its lowest levels in a decade. [16]

GE is the world’s Digital Industrial Company, transforming industry with software-defined machines and solutions that are connected, responsive and predictive. [18] To quantify what this means for the business, GE expects shop visits for the portfolio to grow at a 5% to 6% CAGR over the next few years (to roughly 5,500 visits in 2020). [19]

Notable engines in GE’s commercial portfolio include GEnx (65% win rate on the 787 and sole sourced on the 747-8) and LEAP (roughly 60% win rate on the A320neo and sole sourced on the 737 MAX and C919). [19] On top of significant market share, GE’s installed base of roughly 35,000 commercial engines is growing. [19]

To meet this growing demand of commercial aviation, it is important for the MRO service providers, across the globe, to ensure provision of efficient and high quality maintenance for airplane components. [20] Duncan Aviation, a Maintenance, Repair and Overhaul (MRO) company says requests for brighter colors, larger-scale patterns and more personalized interiors are on the rise, as well as colored lighting. [21]

Revenues in aviation (the company?s second-largest business segment) came in at $7.52 billion, which was a 13% gain and a solid beat on the $7.22 billion result that was expected by the consensus. [16]

The Renewable Energy segmentholds decent growth potential for GE, as a result of the increasing domestic and internationalwind and hydroorders.We expect the segment’stailwinds to provide decent medium-term growth opportunitiesdriven by strong growth in the domestic andinternational onshore wind and hydroorders, and offshore wind orders. [6] The use of ceramic matrix composites (CMCs) is up across the aerospace market, and among the fastest-growing trends in the global aviation industry. [3]

We expect GE’s latest wins at theFarnborough international airshowto complement the segment’s continuedtailwindsand drive segment revenue to nearly $28 billion (+ 4% y-o-y) driven by strong growth in the Military business, air freight volumes, and the delivery of 1200 LEAP engines by 2018 end. [6] Gulfstream business jets are the first to feature the technology which allows large volumes of aircraft data to be transferred to GE’s cloud for analytics and predictive maintenance analysis automatically from any airport worldwide. [4]

GE had a decent first half of 2018, with revenue growing by 5% year-on-year to just over $58.7 billion, while adjusted earnings came in at35 cents per share (flat year-on-year). [6]

Soft performance across the power, oil & gas, and transportation divisions has impacted GE’s earnings so far and we expect the trend to continue in the near term. [22]

RANKED SELECTED SOURCES(22 source documents arranged by frequency of occurrence in the above report)

1. (4) How Will GE Perform In The Second Half Of 2018? – Nasdaq.com

2. (3) Engine Demand MRO 2017 | MRO Network

3. (3) Aviation Forecasts

4. (3) General Electric: Stop The Madness – General Electric (NYSE:GE) | Seeking Alpha

5. (3) A Look at GE’s Aviation Business – GuruFocus.com

6. (3) Ceramic matrix composites in aircraft engines projected to double over five years, Stratview Research predicts

7. (3) IMC Connected Transportation News: GE, AT&T IoT worldwide aircraft health monitoring

8. (2) 2 Trends Driving GE’s Aviation Business Outlook

9. (2) Why General Electric Shareholders Have Something to Worry About — The Motley Fool

10. (2) Health Monitoring System Market 2018 : Global Aircraft Industry – Wandtv.com, NewsCenter17, StormCenter17, Central Illinois News-

11. (1) Four Commercial Trends Hitting Aviation in 2018 – Avionics

12. (1) Five Key Trends Affecting Commercial Aviation for the Next 20 Years | Commercial Aviation content from Aviation Week

13. (1) GE Aviation Partner Safran Expects Leap Jet Engine Delays To Clear Up

14. (1) https://www.openpr.com/news/1165201/Aviation-Engines-Industry-2018-Market-Trend-Technology-Growth-Top-Key-Players-GE-Aviation-Safran-Honda-Worldwide-Honeywell-Aerospace-Rolls-Royce-Holding-United-Technologies-and-2025-Future-Forecast-Report.html

15. (1) General Electric Results, Outlook Show GE Stock Poised to Rally | InvestorPlace

16. (1) GE Aviation and AT&T Enable Aircraft Health Monitoring

17. (1) Aircraft Component MRO Market 2017 Global Share, Trend, Segmentation and Forecast to 2023 – Press Release – Digital Journal

18. (1) 2017 NBAA Trend Report | PDT

19. (1) What To Expect From GE?s Q4 — Trefis

20. (1) Will Weak Margins in Aviation Segment Hurt GE’s Q1 Earnings? – April 18, 2018 – Zacks.com

21. (1) GE Aviation Marketing Reviews | Glassdoor

22. (1) OEMs Step Up Aftermarket Activity In Asia-Pacific | MRO Network