(Reuters) – General Electric (NYSE:) Co on Tuesday forecast an outright fall in free cash flow from its industrial business this year on the back of continuing weakness in its power unit, sending shares in the company spinning 8 percent lower.
The 7.8 percent dive drove shares below $10 in value and was the biggest intraday percentage drop in more than three months, knocking another $4 billion off the value of the struggling conglomerate.
Chief Executive Officer Larry Culp said the power business would face headwinds for “a couple of years”, would not resolve problems with its turbine blades for “a while” and promised to step up restructuring in the business and elsewhere.
He said free cash flow in the company’s industrial segment overall would be negative.
In January, he had said investors could expect industrial free cash flow to weaken in 2019 as it spends on restructuring in its power and renewables divisions, and the cash flow would increase “substantially” in 2020 and 2021. https://reut.rs/2u05kcl
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