GE's cash flow will be in "negative territory," Culp said at a JPMorgan conference, adding that the company is embracing the reality that its power unit has been slow to adjust cost structure during its slump.
General Electric drops sharply after CEO says it will keep burning cash (GE)
General Electric dropped more than 7% Tuesday afternoon following comments from CEO Lawrence Culp, which said he sees the company having a negative free cash flow this year.
"This is a multi-year turnaround" in power unit, he said.
GE shares were under pressure in 2018, losing more thanhalf of their value as its power business struggled , price-cost pressures were compounded by the US-China trade war, and its LEAP engine suffered through behind-schedule deliveries .
To reorganize its business, GE in October replaced John Flannery with Larry Culp as GE's CEO. Under the leadership of Culp, GE has been working hard to reduce debt and raise cash by selling assets.
This story is developing. Check back for updates .
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