GE shares have suddenly tumbled over 7% this morning, 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.”
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?
via ZeroHedge News https://ift.tt/2NGDOcA Tyler Durden