GE shares tumble after warning of negative cash flow in 2019
The worse-than-expected outlook sends shares and bonds down
New York — General Electric's CEO Larry Culp surprised investors on Tuesday by forecasting a net cash outflow from the conglomerate's industrial business in 2019, a far more negative outlook than he offered previously, sending shares and bonds down. "Industrial free cash flow will be (in) negative territory," CEO Larry Culp said in a webcast interview with JPMorgan analyst Stephen Tusa, a longtime GE bear. "We lost $2.7bn last year in free cash in power," Culp added later in the interview, referring to expectations that GE's power business would take years to turn around. "I don't want to sugarcoat that in any way, shape or form." "We'll see what will be a greater negative number in this year as we work through the restructuring, as we work through the runoff liabilities there and just the localisation of timing around projects," Culp said.
GE's shares dropped below $10, which marked the biggest intraday percentage drop in more than three months, knocking $4bn off the company'...
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