schema:articleBody
| - General Electric reported a dip in fourth-quarter earnings Wednesday as the Boeing 737 MAX grounding hit cashflow, but topped analyst expectations on progress in a company turnaround. Profits for the quarter ending December 31 were $538 million, down 6.3 percent from the year-ago period. Revenues slipped 1.0 percent to $26.2 billion. The company said the power business had stabilized and that it had made progress in lowering costs. Revenues, although much lower for the year, edged higher in the fourth quarter. Power has been an albatross around GE in recent years, plagued by overcapacity as increases in renewable power have hit demand for GE gas-fired turbines. GE reported higher revenues and profits in the aviation business due to solid demand, although cashflow was dented by the grounding of the 737 MAX. GE, which builds engines for the MAX, said the crisis over the plane lowered cashflow by $1.4 billion for 2019. Boeing trimmed output on the MAX for much of 2019 and idled production completely in January this year amid a prolonged grounding following two deadly crashes. GE reported higher profits in health care, but a loss in renewable energy. Chief Executive Larry Culp, who has worked to reduce debt at GE, said the fourth quarter marked a "strong" conclusion to 2019. "We are solidifying our financial position, continuing to strengthen our businesses as improvement efforts build momentum, and driving long-term profitable growth," Culp said. "We remain committed to creating value as we continue our multi-year transformation." Shares jumped 5.2 percent to $12.35 in pre-market trading. jmb/bgs
|