General Electric Company (GE) has recently completed the separation of GE Vernova Inc., resulting in a change in its financial position and performance. The separation has led to the reclassification of GE Vernova's business as discontinued operations, with the company now operating through two reportable segments: Commercial Engines and Services and Defense and Propulsion Technologies.
In terms of its preliminary unaudited supplemental consolidated financial position information as of December 31, 2023, the company's total assets have been revised to $173.3 billion, representing an increase from the reported amount of $163.0 billion. This adjustment is primarily attributed to changes in current receivables, inventories, and current contract assets.
Looking at the preliminary unaudited supplemental consolidated cash flows information for the year ended December 31, 2023, the cash from operating activities for continuing operations has been revised to $4.6 billion, reflecting a decrease from the reported amount of $5.6 billion. This change is mainly driven by adjustments in operating working capital components such as current receivables, inventories, and contract liabilities.
Furthermore, in the preliminary unaudited supplemental consolidated earnings information for the year ended December 31, 2023, the total revenues have been revised to $35.3 billion, down from the reported amount of $68.0 billion. This revision is primarily due to the reclassification of sales of equipment and services, resulting in significant changes in the reported figures.
In the supplemental segment information for the same period, the segment profit (loss) for Commercial Engines and Services has been adjusted to $6.6 billion, while Defense and Propulsion Technologies reflect a loss of $4.0 billion.
The market has reacted to these announcements by moving the company's shares -0.8% to a price of $155.41. If you want to know more, read the company's complete 8-K report here.
