GE Aerospace (GE)

[JPetroInc]

2019 is a "reset year" with the 1st Qtr. the "weakest quarter."

Date : 03/14/2019 @ 7:56AM

https://ih.advfn.com/stock-market/NYSE/gen-electric-GE/stock-news/79471549/ge-warns-of-another-year-of-falling-profits

Click Here for more Gen Electric Charts.By Thomas Gryta

General Electric Co. warned investors of another year of lower profits and weak cash flow from its core industrial operations.

GE forecast on Thursday that its industrial operations could burn up to $2 billion more cash than they generate in 2019 and set earnings targets for the year that were below Wall Street's forecasts.The financial projections follow two difficult years in which the conglomerate has reported falling profits and slashed its dividend.

For 2019, GE expects adjusted earnings of 50 cents to 60 cents per share, compared with the 70 cents forecast by analysts. In 2018, GE reported a per-share profit of 65 cents and positive cash flow of $4.5 billion from its industrial operations.

Larry Culp, who took over as chief executive in October, had declined to provide detailed financial targets for GE as he spent time reviewing the company. He recently gave a hint of the struggles ahead by revealing that GE's portfolio of industrial businesses will fail to produce cash this year.

The negative cash flow is a consequence of the troubled Power business and the costly restructuring it needs to adjust to market demand. GE has excess capacity after buying the power business of Alstom SA in 2015.

GE will hold a conference call at 8:30 a.m. EDT with executives to discuss the projections. In slides posted for the call, GE said 2019 is a "reset year" with the first quarter the "weakest quarter."