GE: sets debt targets; shares inch up

(CercleFinance.com) - GE has set debt metric targets, according to the US conglomerate's annual report, as the company is continuing with its asset sales to cut debt.


In its 10-K filing, GE said it intends to maintain a "disciplined" financial policy, targeting a net debt/EBITDA ratio of less than 2.5x and a dividend in line with peers.

The conglomerate said that it expects to make "significant progress" towards its leverage goals over the next two years.

GE said it still has significant sources that can be used to de-lever and de-risk the company, including the proceeds from the closing of the merger of its transportation business with Wabtec, the recent sale of its bio-pharma business and the monetization of remaining stakes, such as Baker Hughes.

But investors were hardly impressed by the financial discipline targets, and GE shares rose just 1% in morning trading on the NYSE.

GE had net debt of 55 billion dollars at the end of 2018.

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