GE Posts Loss on Restructuring Charges But Raises Cash-Flow Goals
October 30 2019 - 7:14AM
Dow Jones News
By Thomas Gryta
General Electric Co. reported a more than $9 billion
third-quarter loss, weighed down by accounting charges tied to its
ongoing restructuring. But the company's core operations generated
cash in the quarter and GE raised its cash-flow outlook for the
year.
Larry Culp, who took over as CEO about a year ago, has been
revamping GE with a focus on cutting its debt and generating cash
from its businesses of making jet engines and power turbines.
GE reported adjusted cash flow from industrial operations of
$650 million for the third quarter and predicted it would generate
as much as $2 billion of cash on that basis for the full year.
GE's struggles in recent years -- including a gutting of its
dividend largely stemming from deep problems in its power business
and financial services division -- have made cash flow the most
important financial measure for investors. GE previously projected
2019 cash flow ranging from negative $1 billion to positive $1
billion, an estimate it increased in July.
In the third quarter, GE reported a net loss attributable to
common shareholders of $9.47 billion, compared with a year-ago loss
of $22.8 billion, when it booked a big charge on its troubled power
business. Revenue was flat at $23.36 billion as gains in aviation
and health-care units were offset by declines in power.
GE booked an $8.7 billion charge to reflect the lowered value of
its investment in oil equipment and services firm Baker Hughes. The
company also recorded a $1 billion charge on its legacy insurance
business and a $740 million write-down on the value of its
hydropower business.
Excluding charges, GE said its adjusted earnings were 15 cents a
share, ahead of an analyst projection of 12 cents a share,
according to Refinitiv.
(END) Dow Jones Newswires
October 30, 2019 06:59 ET (10:59 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
GE Aerospace (NYSE:GE)
Historical Stock Chart
From Mar 2024 to Apr 2024
GE Aerospace (NYSE:GE)
Historical Stock Chart
From Apr 2023 to Apr 2024