Alwyn Scott and Rachit Vats
(Reuters) – General Electric (NYSE 🙂 In the fourth quarter of last year, it estimates sales and cash flow and announced on Thursday it has reached a probate deal with mortgage mortgage cases with US regulators.
GE's inventories jumped by almost 15 percent to $ 10.45, with profits and sales rising in aviation, health and oil and gas companies, which compensated for nearly 1 billion of cumulative losses on its strengths and GE Capital units.
Many analysts and investors have prepared for disappointing results and were thrilled that the new CEO, Larry Culp, managed to show some improvements while he was bad for bad news.
However, Culp offered only a poor prognosis, saying that the arrangements would soon be arranged.
Investors were mostly insensitive. "The only relevant quarterly figures are that real sales and free cash flow from operations with industries were better than expected," analyst William Blair Nicholas Heymann said.
GE also announced a deal with the US Ministry of Justice on its mortgage lending practices before the 2008 financial crisis. GE will pay a $ 1.5 billion civil penalty, which has already been set aside.
At a conference call, Culp has denied the possibility of selling GE's 40 billion-dollar aircraft rental unit, sparking concern over the rejection of one of the few profitable parts of GE Capital.
Although it does not provide forecasts, Culp has set targets that meet analysts 'and investors' requirements: raising GE's three-way credit rating on A, reducing industrial debt and dividend returns. Culp did not set the time frame.
However, GE's long-standing presentation featured numerous warnings and inaccuracies. The money will probably fall in 2019, but GE will not say how much; GE is still in "early innings" turning around its power business, where revenues will fall again in 2019; In February, GE will provide more details of its toxic liability obligations for long-term care after receiving a $ 6.2 billion reimbursement and allocating $ 15 billion to cover premium shortfalls last year.
It has also not provided more details on ongoing regulatory investigations into the accounting of long-term care policies and power plant contracts.
"The results are better than expected because expectations were so low," said Erik Gordon, a professor at the School of Business at the University of Michigan. "The company is still facing huge challenges of mountain debt management and restoring investor confidence in the accuracy of its numbers."
The 2018 results cover an exceptionally bad year for GE, which began charging $ 11 billion and announcing US accounting controls, ending with GE appointing a CEO of an outsider who wants to speed up $ 20 billion in sales and take away a huge GE- And ,
The 127-year-old conglomerate was also kicked out of the company, if the credit rating fell to three levels above the garbage, executive bonus was eliminated, quarterly dividend on the coin was reduced, because the wind and solar energy were switched, while the GE's gas turbine was operating with defective turbine blades.
GE announced that in the fourth quarter, the drive unit filled out $ 400 million to cover blade repairs to dozens of customers around the world and other costs.
GE recorded a profit of $ 666 million for the fourth quarter, and revenue grew by 5 percent to $ 33.3 billion, according to estimates by analysts of $ 32.6 billion.
Industrial free cash flow of $ 4.9 billion in the quarter, compared with last year's year-on-year low, surpassed the $ 4 billion threshold that investors wanted to win. He said that GE liquidated inventory and improved bill collection in renewable energy sources, but it was not clear whether these improvements could continue.
GE's loss lost $ 872 million in the quarter and GE Capital Finance lost $ 177 million.
GE's profit was 8 cents per share, compared to a loss of $ 1.29 per share a year ago. According to a corrected basis, GE earned 17 cents per share, which is below the analyst's estimate of 22 cents, according to Refinitiv IBES.