GE exceeds profit forecasts but remains true to forecasts for the whole year

General Electric, the struggling US manufacturing group, reported better-than-expected earnings for the first quarter but posted a net cash outflow.

Earnings per share, excluding special items, was 14 cents, down 7% from the same period of 2018 but above the average forecast of 9 cents.

However, Larry Culp, chief executive, said the stronger than expected performance was "largely time-driven", and that the company was sticking to its previous expectations that adjusted earnings for 2019 in its together would be in the range of 50 to 60 cents.

Revenues for the quarter were $ 27.3 billion, down 2% and in line with expectations.

Equities rose more than 5% in pre-market transactions.

Mr. Culp said in a statement: "It's a quarter of what will be a multi-year transformation, and 2019 remains a pivotal year for us."

GE's aviation division, which manufactures the Leap engine used on the Boeing 737 Max airliner, has announced a 4% increase in profits to $ 1.66 billion. Deliveries from the Leap engine continued to rise sharply, reaching 424 units in the first quarter, up 186 units from the same period last year. Engine orders increased 7% to $ 8.7 billion, despite the grounding of the 737 Max following two fatalities.

However, the group's activities providing equipment and services to the electricity sector had a difficult quarter. The profits of the electricity division, which produces gas and steam turbines and other equipment for the production of fossil and nuclear energy and the grid, decreased by 71% to $ 80 million, while that orders fell 14% to $ 4.8 billion. The renewable energy division, which manufactures wind turbines, lost $ 162 million due to damages and contract termination.

GE's industrial operations generated $ 1.2 billion in disbursements, which was worse than expected, but the company explained that this was also due to timing issues, and that it is maintaining its previous exit forecast $ 2 billion or less. the year as a whole.

Mr. Culp also highlighted the work done by GE to reduce its debt, stating: "We continue to focus on reducing debt and improving the underlying performance of our businesses in order to reduce debt. create long-term sustainable value. "

During the quarter, GE announced the sale of its biopharmaceutical business to Danaher for approximately $ 20 billion in cash and completed the merger of its transportation division with Wabtec, generating $ 2.9 billion in cash.