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UPDATE 1-GE posts loss, takes Boeing hit but raises forecast; CFO to leave

Alwyn Scott and Rachit Vats

(Adds detail on company forecast, EPS)

July 31 (Reuters) - General Electric Co swung back to a financial loss in the second quarter, as the cost of restructuring its ailing power business and the grounding of a Boeing Co jetliner model drained more cash than expected from GE's otherwise profitable industrial units.

The Boston-based maker of jet engines, power plants and medical devices also said Chief Financial Officer Jamie Miller was stepping down but would stay on until a successor is hired.

The company raised its 2019 outlook for industrial organic revenue growth to a "mid-single-digits" percentage increase from an earlier "low-to-mid single digits," lifted the range of adjusted earnings per share by 5 cents to between 55 cents and 65 cents, and shifted its forecast for industrial free cash flows to between negative $1 billion and positive $1 billion, from $0 to negative $2 billion.

The company said it saw a $600 million cash outflow due to the grounding of Boeing's 737 MAX planes, for which a GE joint-venture makes engines, and it would take a hit of $400 million per quarter in the second half if the grounding continued.

GE's adjusted industrial free cash outflow in the quarter was $1 billion, at the low end of the $1 billion to 2 billion range that Chief Executive Officer Larry Culp indicated in May.

GE said its loss from continuing operations attributable to shareholders was $291 million in the quarter ended June 30, compared to a profit of $679 million a year earlier.

Loss per share from continuing operations was 3 cents down from a profit of 8 cents, the company said. On an adjusted basis, GE earned 17 cents per share, including a one-time tax audit gain of 6 cents. That compared with analysts estimates of 12 cents, on average, according to IBES data from Refinitiv.

Total revenue fell 1.1% to $28.8 billion. (Reporting by Alwyn Scott in New York and Rachit Vats and Sanjana Shivdas in Bengaluru; editing by Patrick Graham and Nick Zieminski)