General Electric Company (GE) Expects Free Cash Flow Of $12 – $15 Billion In 2015


General Electric Company (NYSE:GE) Chairman and CEO, Jeff Immelt, said that the company was aiming to achieve free cash flow of $12 – $15 billion during the current year. This included dispositions, as well as, $10 billion plus returned to the shareholders. Immelt said that the company was focused on its commitments to investors and that there was no change to its goal of achieving double-digit industrial operating earnings growth.

CEO Comments

Immelt stated that General Electric Company (NYSE:GE) closed the December quarter margin growth and industrial earnings strongly. Though the environment remained volatile, the company indicated that it would continue to expect growth opportunities in infrastructure.

The company expressed his happiness in executing its plan in 2014. Aside from this, the company also met its commitment to industrial segment profit growth of 10%, increasing operating margins by half a percentage points and industrial segment’s organic revenue uptick of 7%. The business conglomerate expects to cut down GE Capital size and returning about $11 billion to its shareholders. Immelt said that in a volatile world, the company expects to implement its pivot to deliver 75% of its earnings from Industrial by next year.

4Q Results

General Electric Company (NYSE:GE) reported net earnings of $5.15 billion or 51 cents a share for the fourth quarter representing a whopping growth of 61% over the year-ago quarter. Last year, the company suffered due to financial obligations to Shinsei Bank in Japan. Excluding the impact, it would have earned 56 cents a share during the December quarter. On average, analysts’ predicted the company to deliver earnings of 55 cents a share.

The company’s top line advanced 4% to $42 billion driven by 9% uptick in GE’s organic industrial revenue. However, its’ oil and gas segment suffered 6% drop in revenue. However, on an organic basis, revenues in oil and gas division were flat with the previous year period.

General Electric Company (NYSE:GE)’s profit margin advanced 50 basis points to 18.8% at the end of the December quarter.

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.

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