General Electric Co. shares fell May 23 after CEO John Flannery indicated that the industrial conglomerate's 2019 dividend is not assured and that there are no immediate solutions for its troubled power and capital units.
Speaking to analysts at the annual Electrical Products Group conference in Florida, Flannery said GE's 2019 dividend would depend on free cash flow, operating performance and possible business portfolio changes, according to Reuters.
GE shares closed down 7.26% at $14.18.
Flannery said GE's power business is not expected to attain profit growth in 2018, as the market is expected to remain weak through 2020.
"This is not going to be a quick fix," Flannery was quoted as saying in a report by Bloomberg News.
Flannery also said he would be "highly motivated" if he saw a chance to deal with the insurance operations held by its GE Capital unit, according to the report. In January, GE said it was taking a $6.2 billion charge for the fourth quarter of 2017 for the insurance portfolio.
Flannery affirmed the company's profit targets for 2018, according to Reuters. He said the oil and gas unit's profit would jump by 50% or more, and the aviation unit's profit would increase 15%.
