General Electric told shareholders on Thursday that the agglomerated conglomerate expects 2019 earnings to be below which analysts are expected, as it is still plagued by problems in its power business.
With the company's power business expected to continue to fight, Culp is working to reverse GE's assets, focusing on improving the company's cash generation. , as well as cutting costs.
In addition, GE confirmed what Culp told investors March 3: GE's industrial free cash flow "in 2019 will be negative", with the main metric expectation between flat and negative $ 2 billion. Free cash flow was $ 4.5 billion in 2018. Free cash flow is a financial term defined as money again after a company pays operating expenses and capital expenditures, and is often used as a performance measure. GE's industrial free cash flow is a key target for investors.
GE expects industrial free cash flow to return to positive by 2020.
The company's debt overhang is also a focus of Culp. GE said "the company is still committed to targeting a single A-series rating." For heavily exploited GE Capital, the company said that it is targeting a debt to equity ratio below 4 times.