GE warns investors of weaker financial performance in 2019

Source: Xinhua| 2019-03-15 13:36:35|Editor: Shi Yinglun
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WASHINGTON, March 15 (Xinhua) -- U.S. industrial conglomerate General Electric Co. (GE) announced its 2019 outlook on Thursday, saying that its challenges in 2019 were "complex."

The Boston-based giant expected that GE Industrial, the company's core business, could burn up to 2 billion U.S. dollars in 2019. That means GE Industrial may see negative free cash flows this year.

"We have work to do in 2019, but we expect 2020 and 2021 performance to be significantly better with positive Industrial free cash flow as headwinds diminish and our operational improvements yield financial results," said Lawrence Culp, chairman and CEO of GE.

The company also expected that GE Industrial segment organic revenues will grow in the "low- to mid-single-digit range." Meanwhile, the adjusted earnings per share could lie between 0.5 to 0.6 dollars.

Culp admitted that the company was facing "complex but clear" challenges, saying that the company would face those challenges "head on."

"We are facing them head on as we execute on our strategic priorities to improve our financial position and strengthen our businesses," said Culp.

Although the profit forecast was gloomy, GE's shares rose 2.79 percent to 10.3 dollars after it finished the trading at the New York Stock Exchange on Thursday.

"We will continue to take thoughtful actions to reduce downside risk and increase upside optionality to create long-term value for our shareholders," Culp added in the announcement.

GE is an American multinational conglomerate founded in 1892 by several business tycoons including Thomas Edison and J.P. Morgan. The company's businesses now include aviation, healthcare, power, renewable energy, digital, additive manufacturing, venture capital and finance, lighting, transportation, oil and gas.