GE Aerospace’s third-quarter profit has shot up more than 50% year on year, to $1.3 billion, reflecting a significant bump in engine deliveries and increasing demand for aftermarket services.
Parent General Electric reports on 25 October deliveries of 347 CFM International Leap turbofans in the period – a 53% increase on the 226 shipped in the same period of 2021.
CFM is a joint venture between GE and Safran Aircraft Engines and produces Leap-series engines for the Airbus A320neo and Boeing 737 Max.
Including its other commercial aircraft engines, such as the GE90 for the 777, GE Aerospace handed over 489 engines in the third quarter, up 30% from 377 deliveries one year earlier.
It delivered 151 military engines in the three months ended 30 September – three fewer than in the same period of 2021.
Ohio-based GE Aerospace “delivered strong orders, revenue and operating profit growth in the third quarter, driven by continued commercial momentum and improving execution”, GE says.
“We are seeing early signs of supply chain easing,” adds Carolina Dybeck Happe, GE chief financial officer.
GE Aerospace’s $1.3 billion third-quarter profit compares to a $846 million profit in the same period of 2021.
The strong results come on third-quarter revenue of $6.7 billion for the aerospace division, up 24% from $5.4 billion in the same period of 2022. GE Aerospace landed orders in the third quarter valued at $7.3 billion, up 6% year on year.
On the aftermarket side, GE Aerospace saw third-quarter services revenue jump 33% year on year, it says.
GE Aerospace landed orders for 101 Leaps in the third quarter, down from 287 in the same period last year. But, it took orders for 936 Leaps in the first nine months of 2022, up from 866 in the first nine months of 2021.
Boston-based parent GE says it is on track to divest its healthcare business in the first week of January 2023, followed by the sale of its other non-aviation businesses, leaving GE Aerospace as the sole remaining company. CEO Larry Culp is to retain the top executive position.