Business & Financial

GE cash flow turns negative in quarter; profit, revenue beat

The General Electric logo marks containers in the parking lot of a facility in Medford

The General Electric (GE) logo marks containers in the parking lot of a facility in Medford, Massachusetts, U.S., April 20, 2017. REUTERS/Brian Snyder

(Reuters) – General Electric Co reported on Friday that first-quarter cash flow from its industrial operations turned negative and was less than the company expected, though its earnings and revenue exceeded analyst estimates.

GE reported a negative $1.6 billion in cash flow from industrial operating activities compared with a negative $600 million it expected for the quarter due to higher working capital and the timing of bills to customers.

Still, GE said it expects to hit its cash target of $12 billion to $14 billion for the full year. Investors have been watching cash flow as an indicator of GE’s operating performance.

Revenue fell 1 percent to $27.66 billion at the maker of jet engines, power plants and other industrial equipment, due to lower sales in its oil-and-gas and lighting businesses. The figure beat analysts’ estimates of $26.26 billion, according to Thomson Reuters I/B/E/S.

Earnings from continuing operations attributable to GE shareholders rose to $858 million in the quarter ended March 31, from $248 million a year earlier.

Earnings per share from continuing operations rose to 10 cents from 3 cents. Adjusted earnings of 21 cents a share were unchanged from a year ago and beat analyst estimates of 17 cents, according to Thomson Reuters I/B/E/S.

GE shares were little changed in premarket trading at $30.28.

(Reporting by Alwyn Scott in New York and Rachit Vats in Bengaluru; Editing by Sriraj Kalluvila and Bernadette Baum)

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