Bond Market News

General Electric (GE) reported Q2 2022 results with $18.6bn in revenues, up 2% YoY. GE Aerospace revenue gained 27% YoY to $6.1bn, while GE Healthcare revenues were 1% higher to $4.5bn. Its adjusted profits came in at $1.7bn, up 81%, translating into an EPS of 78 cents vs. analyst expectations of 38 cents. Adjusted profit margin rose 400bp to 9.3%. It also reported free cash flows of ~$200mn. For 2022, GE expects around $1bn of free cashflow on the timing of working capital dynamics to serve customers & Renewable Energy orders. Chairman and CEO of GE and CEO of GE Aerospace, Larry Culp said, “For Q2 aerospace was a key driver, and services remained a bright spot of performance. While this remains the toughest operating environment. GE just starting the annual strategy and budget planning cycle for 2023. The company still expects to deliver significant YoY improvement in both profit and cash, but below our prior view.”

GE’s dollar bonds were down 1.27 points with its 3.375% 2023s at 98.85, yielding 4.12%.