GE doesn’t see profit growth for power unit in 2018, backs EPS, FCF outlook

GE (GE) CEO John Flannery does not see profit growth at the company’s power unit this year and is planning for the market for heavy duty gas power turbines to remain weak through 2020, the company said in presentation slides for the 2018 Electrical Products Group Conference. The company affirmed its targets for 2018 EPS of $1.00-$1.07 and free cash flow framework of $6B-$7B, and said profit at GE’s Baker Hughes (BHGE) oil and gas unit would rise by 50% or more this year, while profit at the aviation business would be up 15%. The current Street consensus for FY18 EPS is 96c. GE is down 2.6% to $14.90 near noon.