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- General Electric announced Thursday its outlook for 2019.
- President and CEO Larry Culp said the company could use up to $ 2 billion in cash this year, but that it will have a positive free cash flow in 2020 and 2021.
- General Electric has accelerated its efforts to reduce debt and raise funds by selling assets.
- Watch General Electric's trade live.
General Electric released its outlook for 2019 on Thursday morning and said the road was still difficult.
"GE's challenges in 2019 are complex but clear," GE President and CEO Larry Culp said in a press release. "We are addressing them as we implement our strategic priorities to improve our financial position and strengthen our business."
The company has set the following expectations for 2019:
- GE Industrial organic revenues will increase in the low to medium range.
- GE Industrial's adjusted margin will be in the range of flat to 100 basis points.
- GE Industrial Adjusted Free Cash Flow of – $ 2 billion flat.
- Adjusted earnings per share from $ 0.50 to $ 0.60.
Culp said the company was hoping to generate positive free cash flow in 2020 and 2021 "as headwinds mitigate and our operational improvements yield financial results"
Thursday's announcement comes a little over a week after JPMorgan analyst Stephen Tusa thinks GE's turnaround will be decisive. "stretch until 2021", adding that his price target of $ 6 "sounds generous".
GE shares lost more than half of their value last year electricity sector has experienced difficulties, price and cost pressures have been exacerbated by the trade war between the US and China, and his LEAP engine has suffered late deliveries.
The company announced a massive restructuring in June, saying it would reduce its debt by $ 25 billion. In October, GE replaced John Flannery, CEO, by Larry Culp. Under Culp's leadership, GE accelerated its efforts to reduce debt and raise funds by selling assets.
In November, GE announced that it would accelerate its efforts to sell a $ 4 billion stake in the oilfield service provider. Baker Hughes. In addition, its financial subsidiary, GE Capital, sold a Portfolio of 1.5 billion health care equipment financing to US lender TIAA Bank.
And in December, General Electric said that its digital unit would be sell a majority stake in ServiceMax, a software provider, to the technology-driven technology capital investment company, Silver Lake.
In January, GE announced that it had amended the merger agreement between the Wabtec rail transportation company and its GE Transportation business unit. Under the new deal, GE will receive $ 2.9 billion in cash, but will bring more equity to Wabtec.
In addition, GE Capital sold $ 8 billion of assets in the fourth quarter and reduced its debt by $ 21 billion, according to the group. publication of the results.
General Electric was down 1% early Thursday. It was up 37% so far this year.
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