GE Sees 2019 Profit Below View

(RTTNews) - General Electric (GE) said that it now expects adjusted earnings per share to be in the range of $0.50 to $0.60 for fiscal year 2019. Analysts polled by Thomson Reuters expect the company to report earnings of $0.70 per share for 2019. Analysts' estimates typically exclude special items.

GE Chairman and CEO H. Lawrence Culp, Jr. said, "GE's challenges in 2019 are complex but clear. We are facing them head on as we execute on our strategic priorities to improve our financial position and strengthen our businesses. 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. We will continue to take thoughtful actions to reduce downside risk and increase upside optionality to create long-term value for our shareholders."

For full-year 2019, the company expects GE Industrial segment organic revenues will grow in the low- to mid-single-digit range; adjusted GE Industrial margin will expand in a range from flat to 100 basis points; adjusted GE Industrial free cash flows of negative $2 billion to $0 billion.

Looking ahead to 2020 and 2021, GE expects adjusted Industrial free cash flows to be positive in 2020, with the pace of improvement accelerating in 2021.