GE Delays Release of Quarterly Results Until Oct. 30--2nd Update
October 12 2018 - 2:07PM
Dow Jones News
By Thomas Gryta
General Electric Co. delayed the release of it quarterly results
by a week, saying its new CEO needed more time to complete his
review of the embattled conglomerate.
GE said it would report third-quarter results Oct. 30. It was
previously scheduled to report Oct. 25.
The company moved its earnings call to allow new Chairman and
Chief Executive Larry Culp more time "to complete initial business
reviews and site visits" following his Oct. 1 appointment, the
company said in a notice to investors.
Mr. Culp is in his second week on the job after the industrial
conglomerate abruptly fired John Flannery. The company disclosed on
Oct. 1 more troubles in its already hobbled power business and
again cut its cash-flow projections.
General Electric stock has surged almost 13% since Mr. Culp took
the helm but is still down 45% in the past 12 months. The stock
recently traded up 2 cents to $12.74.
In the Oct. 30 report, Mr. Culp "will share his initial
observations, with more detail expected in early 2019," the company
said Friday. In years past, GE has presented its annual financial
outlook to analysts and investors in December, although that didn't
happen last year under Mr. Flannery.
Several analysts also expect new financial projections along
with some strategic shifts or possibly even another dividend cut to
come with the third-quarter results. GE cut its dividend by half
last year after the severity of its financial troubles was
revealed.
Analysts were surprised by Friday's delay and left open the
possibility that there could be an unknown issue or a pending asset
sale. The company is telling investors that the delay is related to
Mr. Culp's travel schedule as he is reviewing GE businesses.
Mr. Culp, formerly CEO of Danaher Corp., and the first outsider
to run GE, joined the board of directors in April and was named
lead director two months later.
UBS analyst Steven Winoker didn't think the move raised alarms
and sees the new CEO as giving himself enough time before
addressing investors rather than rushing the process. Mr. Winoker
said he expects a GE turnaround to take years but sees the
third-quarter results as the next notable event for GE
shareholders.
Melius Research analyst Scott Davis said the delay adds to the
noise around the company and allows for investor speculation about
the reasoning. He said Mr. Culp is used to giving details to
investors when reporting results and future projections, but that
numbers will only be part of the story for investors.
"It will be 95% what Larry says and 5% what they actually
report," he said.
Write to Thomas Gryta at thomas.gryta@wsj.com
(END) Dow Jones Newswires
October 12, 2018 13:52 ET (17:52 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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