General Electric Company (GE) Presents at Morgan Stanley’s 14th Annual Laguna Conference Transcript

Kristine Liwag
Morgan Stanley, Research Division

Hello. Good morning, everyone. I’m Kristine Liwag, Morgan Stanley’s Head of Aerospace & Defense Equity Research. Very excited to host our next panel of GE Aerospace with Rahul Ghai, CFO of GE. So welcome, Rahul.

Rahul Ghai
Senior VP & CFO

Thank you, Kristine.

Kristine Liwag
Morgan Stanley, Research Division

Before we get started, you guys know the drill. For important disclosures, please see the Morgan Stanley research disclosure website at www.morganstanley.com/researchdisclosures. If you have any questions, please reach out to your Morgan Stanley representatives.

So with that, maybe Rahul, I’ll pass it on to you for some opening remarks.

Rahul Ghai
Senior VP & CFO

Thank you, Kristine. Thank you for having us. Obviously, excited to be here. There’s lots going on. As you guys know, GE Aerospace is a great franchise, one of the largest aerospace and defense fleets, 80,000 aircraft underwing right now, 50,000 on commercial, one of the fastest growing in the world, 30,000 on defense. We power 2/3 of the U.S. combat aircraft. So a fantastic franchise.

And it has been a very, very busy summer for us. Last time most of us were together was at Farnborough. And prior to that, we reported our second quarter earnings. But we had a really good air show. We got over 1,800 new engine orders at Farnborough, including the largest ever aerospace order from IndiGo Airlines for the LEAP-1A engine. That was a 1,000-plus engine order. And since then, we also got 100 engine order yesterday, engines and services from the Korean Airlines. So really strong commercial momentum in the business.