AP Images / Richard Drew
- General Electric on Thursday gave its 2019 outlook.
- Chairman and CEO Larry Culp said the company could burn up to $2 billion of cash this year, but that it’ll have a positive free cash flow in 2020 and 2021.
- Watch General Electric trade live.
General Electric released its 2019 outlook on Thursday morning, and indicated that it still has a difficult road ahead.
"GE’s challenges in 2019 are complex but clear," GE chairman and CEO Larry Culp said in the press release. "We are facing them head on as we execute on our strategic priorities to improve our financial position and strengthen our businesses."
The company laid out the following expectations for 2019:
- GE Industrial segment organic revenues will grow in the low- to mid-single-digit range.
- Adjusted GE Industrial margin will be in a range from flat to 100 basis points.
- Adjusted GE Industrial free cash flow of -$2 billion to flat.
- Adjusted earnings per share of $0.50 to $0.60.
Culp said the company expects to reach a positive free cash flow in 2020 and 2021 "as headwinds diminish and our operational improvements yield financial results."
Thursday’s announcement comes just over a week after JPMorgan analyst Stephen Tusa said he thinks GE’s turaround will "stretch into 2021," adding that his $6 price target "looks generous."
This story is developing…Check back for updates.
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Source: Business Insider – jgarber@businessinsider.com (Jonathan Garber)