GE Finds Its Footing and Posts Strong 4Q Cash Flow

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 [e-mail]

(END) Dow Jones Newswires

January 29, 2020 07:27 ET (12:27 GMT)

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