GE Swings to Quarterly Profit as It Shrinks
30 April 2019 - 9:34PM
Dow Jones News
By Thomas Gryta
General Electric Co. swung to a first-quarter profit as the
conglomerate reported stronger cash production than expected while
leaving its full-year expectations unchanged.
GE reported adjusted cash flow from industrial operations of
negative $1.2 billion; the company warned earlier this year that
cash flow would drop as much as negative $2 billion this year from
its core industrial operations.
It has called 2019 a "reset year" but has warned the first
quarter would be the low point of the results. New CEO Larry Culp
is restructuring the company, prioritizing the struggling Power
division as well as reducing the conglomerates massive debt
load.
In the first quarter, GE reported a profit of $3.55 billion,
compared with a year-ago loss of $1.18 billion. Revenue fell 2% to
$27.29 billion, as a sharp decline in the Power division, which
makes turbines for power plants, offset gains in Aviation and other
units.
"Our quarterly results were better than our expectations,
largely driven by timing of certain items, which should balance out
over the course of the year," Mr. Culp said in a statement. "This
is one quarter in what will be a multiyear transformation."
In the quarter, GE completed the sale of its century-old
locomotive business, struck a more than $20 billion deal to sell
its biotechnology business and paid $1.5 billion to settle a
long-running Justice Department probe into a legacy mortgage
lending business.
Write to Thomas Gryta at thomas.gryta@wsj.com
(END) Dow Jones Newswires
April 30, 2019 07:19 ET (11:19 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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