General Electric Co. stood by its annual financial forecast despite a first-quarter blow from the coronavirus outbreak that has disrupted supply chains and hurt business activity worldwide.

Free cash flow from GE’s manufacturing operations will take a first-quarter hit of as much as US$500 million due to the virus, GE said Wednesday in a statement. The infection’s spread will also drag down operating profit by up US$300 million, in part from reduced capacity at GE and some suppliers.

The company maintained its full-year forecast, which calls for adjusted earnings of 50 cents to 60 cents a share and industrial free cash flow of as much as US$4 billion. But the 2020 outlook doesn’t incorporate any coronavirus impact beyond the first quarter.

That leaves a potential risk for Chief Executive Officer Larry Culp’s bid to pull GE out of one of the worst slumps in its 128-year history. After losing more than US$200 billion in market value during the two years ended 2018, GE had one of its best annual stock gains last year amid efforts to reduce debt, sell assets and improve company culture.

The shares rose three per cent to US$11.21 before regular trading in New York.

Despite the drag from the virus, GE got some clarity on its outlook as it reached a deal with Boeing Co. specifying payment terms for engines for the 737 Max jetliner, which has been grounded for almost a year following a pair of deadly crashes. Safran SA, with makes the engines through a joint venture with GE, said last week that the agreement calls for payment of all delivered units this year and a schedule of compensation for 2019 deliveries.

“That does give us certainty relative to that stream of cash at aviation, which is a helpful piece in the puzzle,” Culp said in an interview.

Adjusted earnings in the first quarter will be about 10 cents a share, GE said. That trailed the 13-cent average of analyst estimates compiled by Bloomberg.

The virus reduced operating capacity at GE and its suppliers. Departures of aircraft serviced by GE have dropped about 60 per cent in China, reducing billings. All but two of GE’s sites in China have restarted since the outbreak.