- 4Q’18: GE CFOA (GAAP) of $6.4 billion; adjusted GE Industrial free cash flows (non-GAAP)-a) of $4.9 billion
- FY’18: GE CFOA (GAAP) of $2.3 billion; adjusted GE Industrial free cash flows (non-GAAP)-a) of $4.5 billion
- 4Q’18: continuing EPS (GAAP) of $0.08; adjusted EPS (non-GAAP) of $0.17
- FY’18: continuing EPS (GAAP) of $(2.43); adjusted EPS (non-GAAP) of $0.65
BOSTON – January 31, 2019 – GE (NYSE:GE) announced results today for the quarter ended December 31, 2018. GE reported revenues of $33.3 billion, GE cash flows from operating activities of $6.4 billion, adjusted GE Industrial free cash flows (non-GAAP) of $4.9 billion, continuing earnings per share (EPS) of $0.08, and adjusted EPS (non-GAAP) of $0.17. Full details, including full-year results, are below.
Recent actions to make GE simpler and stronger include:
De-leveraging the balance sheet:
- Reduced quarterly dividend, accelerated the sell-down of GE’s stake in BHGE, and increased GE’s retained stake in the planned Wabtec transaction, collectively allowing GE to generate or retain approximately $10 billion of cash.
- In GE Industrial, signed or completed substantially all of the $20 billion asset disposition program in 2018.
- In GE Capital, completed $8 billion of asset sales and other actions in the quarter, bringing the total dispositions to $15 billion in 2018; paid down external debt by $21 billion in 2018.
- Reached agreement in principle with the United States Department of Justice to settle the FIRREA investigation of WMC, with GE to pay a civil penalty of $1.5 billion, consistent with the prior reserve for this matter.
Strengthening the businesses:
- Delayered Power to improve accountability and cost structures in underlying businesses.
- Announced plans to consolidate GE’s renewable and grid assets into Renewable Energy.
- Launching an independent GE-owned Digital business to better focus on growth opportunities in industrial IoT.
- Refocused Global Growth Organization (GGO) to support commercial growth in emerging markets.
- Named new leaders, including Kevin Cox as chief human resources officer, Rachel Duan as CEO of GGO, Scott Strazik as CEO of Gas Power, Karyn Ovelmen as transformation leader of Gas Power, John Rice as chairman of Gas Power, and Steve Winoker as VP of Investor Relations.
- Appointed Paula Rosput Reynolds to GE’s Board and announced GE’s intention to conduct an auditor tender process.
GE Chairman and CEO H. Lawrence Culp, Jr. said, “Our strategy is clear: de-leverage our balance sheet and strengthen our businesses, starting with Power. To do this, we are improving execution, customer focus, and how we set priorities across GE. I’m confident in our team, technology, and the global reach of GE’s brand and relationships. We have more work to do, but I’m encouraged by the changes we’re making to strengthen GE and create value for our shareholders, customers, and employees.”
