GE Warns Of Negative Industrial Cash Flow In 2019

(RTTNews) - General Electric (GE) chief executive officer Larry Culp said that the company's industrial free cash flow will be negative in 2019.

The Cash flow from GE's industrial operations will be negative this year as GE grapples with further challenges in its power business and other operational pressures, Larry Culp said Tuesday at an industry conferece. That's a sharp drop from 2018, when the maker of gas turbines and jet engines brought in $4.5 billion by the closely watched measure.

"We think this is a transformation in the making, but we need to pay the piper," he said. GE is taking steps now to "manage though a challenging time, with an eye toward '20 and '21."

"This is a multiyear turnaround in power," Culp said. This year's cash outflow from the power division will be worse than last year's $2.7 billion burn. The headwinds to 2019 cash flow will "meaningfully lessen" in 2020 and 2021, GE said in slides accompanying Culp's presentation.

The company anticipates strong performance in its aviation and renewable energy units this year.

GE plans to provide its full 2019 forecast on March 14.