GE’s declining cash flow raises pressure on CEO Immelt

BOSTON: General Electric Co (GE) reported a sharp drop in cash flow, further denting the firm after investors had grown anxious about recent results.

“Our cash performance was worse than we expected to start the year,” said chief executive officer Jeffrey Immelt. Industrial operating cash flow fell to negative US$1.6 billion (RM7.04 billion) in the first quarter, about US$1 billion worse than expected.

The results amplify the pressure on Immelt to get GE back on track after the oil-price slump and sluggish economy constrained growth and weighed on shares last year. The company agreed last month to step up cost-cutting efforts after talks with shareholder Trian Fund Management, which was co-founded by Nelson Peltz. Bloomberg