GE Finds Its Footing and Posts Strong 4Q Cash Flow
January 29 2020 - 7:42AM
Dow Jones News
By Thomas Gryta
General Electric Co. reported strong cash flow from its
industrial operations in the fourth quarter and gave an upbeat
outlook for 2020, as the conglomerate reverses losses in its power
business and its aviation division continues to support the rest of
the company.
GE said it generated $3.9 billion in industrial free cash flow
in the December ended quarter, helping the company exceed its
targets for the full year. Cash flow is essentially the money
remaining after paying bills and making investments.
On Wednesday, executives projected cash flow and profits would
rise in 2020, as restructuring efforts and improved business
conditions offset challenges from the grounding of Boeing Co.'s 737
MAX jet. GE is part of a joint venture that makes the engines for
the airplane; its financial projections assume the plane returns to
service in mid-2020.
GE shares rose 3.5% to $12.14 in premarket trading. After
tumbling below $8 last summer, the shares have rallied as Chief
Executive Larry Culp makes progress on his plans to pay down the
company's debt load and streamline its operations. Strapped for
cash, GE slashed its dividend and has been selling off business
units.
The company said it would provide a detailed 2020 financial
outlook in early March.
Write to Thomas Gryta at thomas.gryta@wsj.com
(END) Dow Jones Newswires
January 29, 2020 07:27 ET (12:27 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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