Investors expressed support for GE to pay no more than $ 1.5 billion previously allocated to WMC. GE stocks rose by 17% on Thursday to three months high. GE's performance was the best since 2009.
"We can start moving this episode behind," CEO Larry Culp told analysts about WMC settlements.
"We're on something big," said Culps. "It's the beginning, but we have a lot to do."
Electricity orders declined by 19% in the fourth quarter and revenue fell by 25%. The company blamed "continuous execution and operational problems". GE promised to improve its power discipline, project management and execution. GE Power is slashing jobs and closing equipment.
"Fixing force will take time," said Culps, adding that the division would have fought again in 2019, and its turnover is "very early."
"We don't plan to sell the aircraft leasing unit," said Culp.
As expected, the bright spot for GE was its fast growing aviation business that benefited from fast-growing engine orders. GE Aviation recorded a quarterly profit of 24% and increased its order backlog by 89% for the LEAP engine program.
Culp expects industry profit margins to expand in 2019, while the free cash flow warning is facing wind. Revenues and profits are expected to grow slightly this year.
Culp was faster than long-term prospects, predicting cash flow to "grow significantly" in 2020 and 2021.
"2019 The year is still a very unfinished job, but the company is getting stronger," said Culps.
JPMorgan Chase analyst C. Stephen Tusa, Jr., one of the largest on GE Street on Wall Street, rigorously asked managers whether the company would create a free cash flow in 2019. .
John Inks, an analyst at Gordon Hasket, discovered an alarming reaction.
"Why do you, how many years have you lost, would you give GE the benefit of doubts?" Inch told CNN Business.
GE Empire Shrinking
GE reported sales of about $ 8 billion in the fourth quarter, resulting in 2018 sales of $ 15 billion.
Next big business: GE Healthcare, which produces MRI equipment and other medical equipment. Culp said that GE could earn almost half of the cost-effective healthcare department, although he refused to detail the time of the deal.
Asking if he was convinced that "all the closets in the closet" were found, Culp left the door open to get more bad news.
"I don't think I ever said, even here on the last day that we've found all the skeletons," Culps said. "I have no tendency to take the absolute."