GE Chairman and CEO H. Lawrence Culp Jr. hosted an outlook meeting with analysts and investors today. He walked them through the company’s plans to deliver on its strategic priorities of improving its financial position and strengthening its businesses in 2019 and beyond.
As part of the guidance for 2019, GE is expecting Industrial organic revenue (non-GAAP) growth in the low-to-mid single digits and adjusted Industrial free cash flows (non-GAAP) in the range of negative $2 billion to $0 billion.
Looking ahead to 2020 and 2021, GE expects Industrial free cash flow to return to positive territory in 2020 and accelerate thereafter in 2021. “GE’s challenges in 2019 are complex but clear,” Culp said. “We are facing them head on as we execute on our strategic priorities to improve our financial position and strengthen our businesses.”
Culp was joined by GE CFO Jamie Miller, GE Gas Power CEO Scott Strazik, and GE Vice Chair & GE Aviation President & CEO David Joyce during the Outlook presentation. They shared projections for each segment to give investors a clear view of the company’s expectations for the next few years. “We have work to do in 2019, but we expect 2020 and 2021 performance to be significantly better with positive free cash flow as headwinds diminish and our operational improvements yield financial results,” Culp said. “We will continue to take thoughtful actions to reduce downside risk and increase upside optionality to create value for our long-term shareholders.”
You can find more details, including expected segment performance, on the investor relations website.
Caution concerning forward-looking statements: This document contains forward-looking statements – that is, statements related to future events that by their nature address matters that are, to different degrees, uncertain. For details on the uncertainties that may cause our actual future results to be materially different than those expressed in our forward-looking statements, see https://www.ge.com/investor-relations/important-forward-looking-statement-information as well as our annual reports on Form 10-K and quarterly reports on Form 10-Q. We do not undertake to update our forward-looking statements. This document also includes certain forward-looking projected financial information that is based on current estimates and forecasts. Actual results could differ materially.
Non-GAAP financial measures: This document uses non-GAAP financial measures, which supplement our disclosures prepared in accordance with generally accepted accounting principles (GAAP) and should not be considered an alternative to the GAAP measure. The reasons we use these non-GAAP financial measures and the reconciliations to their most directly comparable GAAP financial measures are included in the 2019 GE Investor Outlook supplemental information package posted to the investor relations section of GE’s website at www.ge.com.
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