General Electric Company (NYSE:GE) shares plummeted after its CEO’s comments at an industry conference made investors less-than-energized about the stock.
During his remarks at the Electrical Products Group conference in Florida, CEO John Flannery said he doesn’t expect profit growth in the power business this year and sees the market remaining weak through 2020.
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The guidance for 2018 remains unchanged, but he does expect results at the lower end of the outlook range between US$1.00 and US$1.07 per share.
When asked if he was certain about the annual dividend rate of US$0.48 per share. Flannery tiptoed around the question, saying that he understands how important that is to investors, but he would have to see “how this plays out.”
“It’s ultimately a function of the free cash flow of the company and that’s ultimately a function of our operating performance with the assets and things that we do with the portfolio,” said Flannery.
Shares of the energy giant fell more than 7% following the announcement and continued falling less than 1% to US$14.10 Thursday pre-market trading.