GE Raises Yearly Forecast
CBJ — General Electric has raised its yearly forecast following a modest improvement at some of its industrial units. However, despite that optimism the company still posted a net loss, which is of concern to shareholders, and it’s resulted in the public stocks trending lower.
The Boston-based maker of jet engines, power plants and medical devices also said Chief Financial Officer Jamie Miller, who was appointed in October 2017, plans to step down after a successor is hired in coming weeks.
GE says there is a chance it will generated as much as $1 billion in free cash flow this year, compared with a potential outflow of $2 billion that it forecast in May. GE also raised its profit outlook by 5 cents a share.
But GE’s portfolio of low-margin industrial businesses remains a concern. GE posted its red ink again after two profitable quarters due to a $744-million goodwill charge for its power grid business.