March 4, 2020 / 11:46 AM / 25 days ago

BRIEF-GE Sees Q1 Negative Impact Of Covid-19 To GE Industrial FCF Of About $300-$500 Mln

March 4 (Reuters) - General Electric Co:

* REAFFIRMED 2020 GE INDUSTRIAL REVENUES, ADJUSTED GE INDUSTRIAL PROFIT MARGIN, ADJUSTED EARNINGS PER SHARE AND GE INDUSTRIAL FREE CASH FLOW

* FOR Q1 2020, GE ANTICIPATES A NEGATIVE IMPACT TO GE INDUSTRIAL FCF OF ABOUT $300 MILLION TO $500 MILLION DUE TO COVID-19

* CLOSELY MONITORING THE COVID-19 OUTBREAK AS AN EVOLVING VARIABLE

* GE’S 2020 OUTLOOK ASSUMES THE 737 MAX RETURNS TO SERVICE IN MID-2020, IN LINE WITH BOEING

* EXPECTS TO GENERATE ABOUT $0.10 IN ADJUSTED EARNINGS PER SHARE, ABOUT NEGATIVE $2 BILLION OF GE INDUSTRIAL FREE CASH FLOW, IN Q1 2020

* FURTHER IMPACT OF CORONAVIRUS BEYOND Q1 IS NOT INCORPORATED

* IN 2020, GE CAPITAL EXPECTS TO GENERATE A LOSS IN ADJUSTED CONTINUING EARNINGS OF BETWEEN $0.3 BILLION TO $0.5 BILLION

* IN Q1 EXPECT NEGATIVE IMPACT TO OPERATING PROFIT OF ABOUT $200 MILLION TO $300 MILLION, FROM COVID-19

* COMPARED TO 2019, 2020 OUTLOOK ASSUMES LOWER FREE CASH FLOW AND PROFIT FROM BIOPHARMA DUE TO PLANNED DISPOSITION IN Q1

* COMPARED TO 2019, 2020 OUTLOOK ASSUMES REDUCED CASH FROM BAKER HUGHES SHAREHOLDER DIVIDENDS

* CONTINUES TO TARGET ACHIEVING GE INDUSTRIAL NET DEBT/EBITDA RATIO OF LESS THAN 2.5X, LESS THAN 4-TO-1 DEBT-TO-EQUITY RATIO FOR GE CAPITAL, IN 2020 Source text for Eikon: Further company coverage:

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