General Electric (NYSE:GE)
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3 Months : From Oct 2019 to Jan 2020
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)
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