GE Shares Hit Highest Level in Nearly a Month -- Update

By Jessica Menton 

Shares of General Electric Co. recorded their highest close in nearly a month after the struggling conglomerate said it swung to a first-quarter profit.

GE, which is in the midst of a planned turnaround, on Tuesday said its operations burned through less cash than expected. Investors view cash production as a strong measure of a company's performance.

The stock rose 4.5% to $10.17, its highest closing level since April 2. The stock has climbed 40% in 2019 but remains down 25% over the past 12 months.

Once ranked among the most stable of blue-chip companies, GE's stock has been battered in recent years amid the company's complex restructuring. GE, which was once the most valuable U.S. firm, dropped out of the Dow Jones Industrial Average in 2018 after being part of the 30-stock index for more than a century.

Larry Culp, who took over as chief executive in October, is in the process of implementing a turnaround plan. During an earnings call with shareholders Tuesday morning, executives said they expect cash flow to be negative in the second quarter. Mr. Culp had cautioned that the company's cash flow in 2019 would be impacted by restructuring.

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(END) Dow Jones Newswires

April 30, 2019 17:40 ET (21:40 GMT)

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