GE Shares Head for Best Day Since February
April 30 2019 - 11:08AM
Dow Jones News
By Jessica Menton
Shares of General Electric Co. headed for their best day since
February 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 was recently up 5.6% at $10.28, on pace for its best
one-day percentage gain since Feb. 25. The stock has climbed
roughly 41% in 2019 but remains down 24% 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.
Write to Jessica Menton at Jessica.Menton@wsj.com
(END) Dow Jones Newswires
April 30, 2019 10:53 ET (14:53 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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