GE shares have suddenly over 7%, erasing the big short-squeeze spike from last week after CEO Larry Culp discussed the power unit's future and said free cash flow will be "in negative territory" this year.
Speaking at the J.P. Morgan Aviation, Transportation & Industrials conference in New York, Culp said the company was beginning to "embrace our reality," noting the power unity was slow to adjust its cost structure amid a slump in prices, adding that "this is a multi-year turnaround" and blaming the error in Alstom (one almost remember when companies engaged in due diligence before they pursued multi billion deals).
- GENERAL ELECTRIC CEO SAYS POWER BUSINESS WILL FACE HEADWINDS FOR "A COUPLE OF YEARS", MANY INHERITED FROM ALSTOM
- GENERAL ELECTRIC CEO SAYS WILL SEE EVEN GREATER NEGATIVE FREE CASH FLOW IN POWER THIS YEAR
Culp also said margins in GE healthcare would be similar to those recorded in 2018, with organic revenue in the low to mid-single digit range.
However, the big headline was when Culp admitted that free cash flow from the conglomerate's industrial division is likely to remain negative this year but insisted the troubled group would accelerate its ongoing restructuring plan.
But, but, but, Cramer said GE was fixed?