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

[April 21, 2017]  (Reuters) - General Electric Co <GE.N> 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.

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

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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