General Electric told shareholders on Thursday that the plagued conglomerate expects earnings for 2019 to be below analyst expectations as it continues to plague electricity-related issues.
GE revised its profits and earnings for 2018 lower. Adjusted, GE reduced earnings for 2018 to 53 cents per share (65 cents a share). On a GAAP basis (unadjusted), GE revised total revenue for 2018 from $ 113.6 billion to $ 105.2 billion.
GE expects its energy segment to be "significantly better, but negative" in 2020.
about GE's assets. His focus has been on improving the company's cash generation and cutting costs.
GE also confirmed what Culp told investors on March 3: GE's "free cash flow from industry will be negative in 2019", with the measure expected to be in-between and negative $ 2 billion. GE's industrial free cash flow in 2018 was $ 4.5 billion. Free cash flow – money left over when a company pays operating and capital projects – is often used as a measure of efficiency. GE's free cash flow is an important measure observed by investors.
GE expects industrial free cash flow to return to positive territory in 2020.
The debt overhang of the company is also a focus of Culp. GE said that "the company remains committed to a Single A rating." For the heavily indebted GE Capital, the company targets a debt-to-equity ratio of less than 4.
Culp is seeking to "balance" GE Capital's net income by 2021, the company said.