GE - Earnings call transcript Q4 2017 | General Electric Company

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Operator

Good day, ladies and gentlemen, and welcome to the General Electric Fourth Quarter 2017 Earnings Conference Call. At this time, all participants are in a listen only mode. My name is Ellen and I will be your conference coordinator today. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the program over to your host for today's conference, Matt Cribbins, Vice President of Investor Communications. proceed. Please

Matt Cribbins

welcome John I'm and Flannery; CEO Stokes. and Chairman with GE today's Russell CEO and CFO to morning here webcast. our Power Good Jamie Miller;

the the would available making been earlier today and we are them note today world website and remind Before some supplemental investor since like based our are best www.ge.com/investor. start, presentation, and today. forward-looking as I you we view businesses on are that we at press on of release, have statements of to our our Please the see

described on the elements As in I’ll to website, our And changes. and SEC turn as our change call over filings John. can now, the those world

John Flannery

Thanks, Matt.

step back review stand start we've in the we in made and progress the and I a like on to short to time. just I'd where Before moment quarter, take a

since been from in we've CEO You've has Insurance, specifically us August. a time, news that I heard the recognize shared I tough. became and that Power lot in around

very long-term. so the in We are of doing we for context businesses quickly and issues moving our running the are these tackle to

Our in responsibility I as I next team. making and good reshape the of is has about ensure And strength it the one. the about our in past century progress take matters as stock company we are that as and GE to today, the much feel this especially good

we of are recovery stepped report in our show the The proud together improved Back have goals a and reshaping additive of the each focused execution, allocation, to future, up Today, improvement. purpose. is strategy, nimble mission The challenges. forward We and for progress to clear generation go, a moving beginning we and way key a are accomplish execution. long was to more And and one out the an stronger become organization which have rapid to to quarter, and our and November, portfolio a and cash we laid vision the a a team of but of capital see the new to responding as in more they this of signs upon obsession digital backbone with embraced can single with against is this beginning that I'm common simpler, organization. called the initiatives. teams what is pursue drive we are when foundation

businesses lot ever convinced team but also The as a have have lot are strength and to We a that work as on, to work remains I intact. our core the we of with.

with a our leadership markets. positions our that key in we customers, create create shareholders execution will We performance. franchises more stronger opportunities through value disciplined best for And and operational have and our have for will global for valuable the great team, path outcomes ahead

kind components. early to additive are the lives. world's Aviation, results and the the new introduced envelope in will we Healthcare and new across suitable In by this said, laser device print industry's are I mammography the market XXXX, are manufacturing of patient-assisted the gain. some Pristina It's I of products of innovation the for a am As Healthcare, structural seeing save we profit key and In It our first indicative of the progress and cubed, margin progress is the engine is we and announced in share XX demonstrate especially quarter build it's quarter, machine. also resulted jet meter gain system. It proud we excited in we one significant initiatives. of largest which making powder Additive. we're mammography making Senographe investments in In improve

and XXX XX% and believe to in year, even XXX units year. our and last is are higher while across there margins businesses additive positioned of We we quarter quarter pace in up the in to break utilization to backlog we the capabilities fourth expect and in potential game shipped additive the innovation from the Our truly drive changing Additive XXXX is in was our tremendous increase XXXX. here. a

the we While costs challenging, manufacturing the million have our Power made footprint. remains progress market out in taking organization, rightsizing rationalizing and $XXX of

demonstrating see in and above customers. integration. We And is capturing cost all challenge in the continue for synergies markets. I successfully our to on Predix-powered team through them on we and performance are the path with has driving up also orders for opportunities outcomes fourth is The XXX%. The At achieving Hughes, laser-focused on the am XXXX. is else focusing the up XXXX. ServiceMax. delivering team disciplined with we here is execution pleased the business a team in Baker OPM, profit for clear our the did as XX% billion year, were $X.X growth quarter Digital's APM, refocused strategy up for in and core customer our and

quarter better we to due of a planned, was $X.X than base and cash. lot installed the about here fourth result was is billion so was opportunity with the of key penetrated With a are timing Cash today, it. only other the this after half to have aggressively we in We priorities, half of better progress payments respect there significantly higher. of of start About let's execution. and the going our X% operating

our this weak minds number from discipline the The has and results in quarter been November, more and had investors, execution. three quarters. our we one first you performance the recall of through also given focus our As reflect cash discussion in the

focused are and year. for year we raised came $X a delivered in billion. to our the than third similar of We structural at tenacity a $X.X that, billion higher improving a execution, little target costs. cost-out It's that billion the We quarter visibility, on on with We on and $X.X cash. into story the

strong We have costs. and execution on discipline

$X out billion additional an targeting XXXX. in are We

and are In addition reducing additive on accelerating particularly attacking of we of costs, manufacturing. quality, and manufacturing product focused implementation cost to that, overhead, the design

coming simplifying currently have in in of on we see The dispositions quarters. highly in XX deliver will the that the confident working also We that is active will discussions team are to begin portfolio. goal. tangible over and year you GE We We towards results change to in active the Industrial capital communicated the allocation $XX-billion-plus exit cash billion the plan with There is XXXX increase previously plan and We to our with year ended XX. of no balance on November cash. $XX cash.

pension targeting We AX/PX EBITDA $X a ratings. disciplined policy to billion principal times voluntary short-term our a debt contribution will make debt-funded and to will financial And net maintain we X.X plan.

to We XX, to the XX directors. including new Board are on track from shrink X

position Board new to We the expect statement. the to in prior announce proxy to be

capital on reduction. cash are deep and we cost operational So rigor, allocation, at and the overall focused company level, intensely

is well. priority first the Our running Company

long-term As of I best we Company our the the best for and deliver are at customers structure businesses week, last mentioned the the maximize our and time, the of to value same employees. potential reviewing

deliver the will shareholders GE to GE that most There future, and all enduring employees. the strength The in people. will for our today. for We have our dedicated different it at look a looking best and lies the of the truly but it in details team options a the value does considering than will attractive jobs our be

also had critical planned to is approach continue year quarters we progress, was We had further are changing. the new of us coming These is update of I'm signs that, you we the pieces. working am us in XXXX the significant moving for this intend pleased the lot With totaled insurance, beginning. but that and moves. let and these reform, of beginning portfolio I for for to charges quarter the and and me show challenging $X.XX EPS. made quarter. quarter has team in progress. organization a demonstrating is that turn will cognizant is We only tax year a Clearly, a fourth the charges very when our tangible to XXXX

market, orders were Issues those Excluding by by was Power $XXX Jamie leadership orders both with Corporate. XX% earnings going X% in year EPS team Company in you action in in drivers the delivering in Aviation EPS Aviation the orders and Overall, market driven was LEAP results their will was to And adjusted in in amazing important up offset Russell were billion, for an fourth and $XX additional the but by full take will margins partially quarter, we performances service the the business. in shipping they This be challenging. quarter down Transportation. two continues Renewables, grew continued give entire $X.X Transportation. and with billion, localized and Power through period. XXXX. Service Renewables, We be right. charges. the X% is you an by premier organically. million billion industries. strength the and to the through decline update continue of and mostly on now the the reported, other down minutes. These is you of while grew Healthcare, strong were Healthcare With Aviation plan behind and us businesses focused remains asked quarter, XX%. dedication difficult $X.XX, on orders, strong our walk Backlog good revenue The Power. at the quarter. Healthcare to for Aviation, at the Equipment structural X% The I GE in $XX a quarter Healthcare. year. low versus the but quarter, offset the you franchises team performance $XXX market to we organically. points resilience XXXX softness Strong them. few quarter the by on I've finished guide costs is XX the and and and and through execution totaled gave engines. behind Healthcare in fourth Cash fourth support in In were misses, some the orders Power earnings certain to and working and walk XXX down in business respect basis in you on Power the is reduced a quarter charges, power the highlights were an And fourth-quarter end in challenging. equipment and up had X% franchise through have the last year. driven in and billion. Power

going We be to of gigawatts we term, important to gas are and expect XX in to Long power less orders the year. is next component for XXXX planning for generation. be an again remain down than overall market gas it new

generate as well, European markets and growing very are sector. XX%, above Load October signed in remain volumes in markets pending In XXXX. Renewables across the growth remain in see the We kilometers The pressures growth. tax of markets. there reform X.X is grew passenger very have a valuable tax growth Global December. In the strong Air growth, we with digested date, resolution both to to activity US and experience continues is to the internationally. bill, and strong continues strength market seeing US US almost XX% impact year double-digit aviation healthy, growth. price to stable, was strong, demonstrating been of strong markets globally electricity. in the the to freight market a have date. factors the expect which The world's one-third as strong of revenue but industry. in Emerging tax asset be significant industry we year domestically Healthcare, with the pressure to see onshore pricing slowdown the but saw equity continues wind mid-single-digit

costs. margins, Next, revenue, walk through and me let

the Oil $XX Baker saw all the Power, driven and organic and reported organic. broad For negative revenues revenues volumes. was strength, quarter, The as up mainly Healthcare well. of difference were Renewables up and on lower down X% Transportation had strength re-power organic X% on Gas, the by was Hughes & acquisition. billion, impact continued segment

billion, X% $XXX the margins Industrial organic. flat points. the For down were up revenues in quarter, were and basis XX.X% year, XXX

in delivered camps You basis basis we really team basis Industrial early, were continue XXXX, to XXX grow over points margins the an XXX to and margins will of a were two that XXX on outstanding on in Company. up rest year in years. The X March margins margins sharply. Oil plan the while Healthcare quarter year. to and XXX Gas collectively margins of year XX% were a Aviation hitting & had XXXX LEAP XX% XXXX. In the in delivering points basis the points here. in Healthcare have engines. margins, and points down grow increasing XX XXX up presented margins Power points basis

$XXX Jamie. for turn As good million to I XXXX. going I And billion we've taking the the quarter and structural will mentioned over out have fourth on year. we made good progress earlier, cost, momentum And it $X.X in now into

Jamie Miller

Thanks, John.

you remind of I start consolidated of I want that some we Before in the in our discussed results, to metrics November. with reporting to changes XXXX

quarter that the First, this EPS. Industrial plus Verticals is EPS, we report on last

report and GAAP expense. related reporting an we to to will total cash of EPS we two number, opposed operations accounting earnings, revenue which addition the continuing non-operating changes move restructuring, Industrial to In pension flow cash, to as adjusted will gains, lastly, adoption CFOA. recognition the free new excluding standard. is And On

X, January lower adjusted resulting to new our a will be our or the earnings balance asset lower cash of standard, balances and going This balances As in related forward. doesn't anything change to XXXX, contract cash flows. asset reflect

restated XXXX basis a the on consistent provide and new information We accounting. quarterly XXXX will with

performance is a after remaining a will and first or file provide is of newly report the in quarter it GAAP restated is We are obligations, and we the to standard also we to change the RPO process measure still financials new once in to Related RPO implemented. finalizing move you the XX-K. the reporting will shortly RPO. them accounting we

that Additionally, new believe press has have format. and more it's substantive may you We noticed release earnings our easily digestible. more a

will to with investors all the at communications goal standardization our to transparency. We of formats to and continue we re-look increase that and data provide to continue

more see XXXX. as likely move throughout will you we changes So

$XX.X Next, revenues consolidated billion, X%. on were results, fourth-quarter down

actions in in the and For $X.XX from EPS taking week, discussed tax Industrial Insurance-related driven impacts $X.XX plus Industrial. are in down $X.XX negative by adjustments XXXX. was the fourth the last Included quarter quarter, $X.XX, negative the of of was Verticals we portfolio-related reform, we charges

Vertical discontinued EPS plus page. $X.XX the impact activity, year, includes year which negative I of Power in the segment. $X.XX non-operating pension, negative Industrial principally and over Capital Operating Continuing still $X.XX $X.XX. continuing GE results these negative GE Capital EPS quarter, EPS was by the will cover more the includes items, of was on significantly other EPS down the net Excluding incorporates driven of operations. This of

a reform. negative And Next charges, other the on tax on was in charges XXX% quarter taxes, tax and fourth-quarter restructuring, reflecting our This quarter year. tax and the quarter, and to a the GE X% pre-tax the Industrial for related negative tax Industrial tax includes rate loss. the for positive was in US excluding gains, rate charge reform XX%

On principally The over Aviation, Healthcare, & right the was better offset the by Power are XX%. Industrial and Oil year results. op profit year and was year. year Gas side Corporate, driven decline segment by partially down over and

separately. $XXX million of As cost-out and structural John cover another the the mentioned, quarter we will in took I individual segment dynamics

On to billion Capital in the That the we activities future. including expect $X line the dividend reported cash cash Baker prior page, not GE dividend our operating of this our next from did is Capital quarter. a And quarter We CFOA. foreseeable the receive from don't represents was GE in Hughes communications. receive in flow a GE from with XXX% and for

And million and billion. Hughes Hughes this from the dividend in our was billion CFOA taxes. deal on year. plan $X.X Baker excluding pension and was US down GE quarter, CFOA, $XXX is With a CFOA Baker Industrial prior the million basis Industrial principal the adjusted for funding of GE Our $X.X $XXX

was strong year, performance. CFOA better-than-expected our and performances, adjusted for businesses asset driven This and Hughes expectations. above Healthcare cash full-year the guidance progress $X.X Power Industrial turned the Baker in of in in GE For of was with The by contract billion. $X our came performance primarily billion, Aviation collections total and line

components side, cash some on On activity color in I fourth quarter. the right-hand have the of

receivables, with growth favorable assets the such the inflow, by of from fourth reform, progress CSA in held-for-sale by driven an working tax This higher-than-expected in deferred Power asset growth, operating billion $XXX billion, impact flow, of in from from and inventory generated consistent as contract total primarily cash shipments higher increase by amortization $X and sequentially of higher in expenses All during better Renewables. million. partially charges, principally offset a $X.X flat lower flows assets. about intangible sales our was offset flows taxes, inflows other quarter. flow were a deferred inventory non-cash by was of cash usage cash Contract First, driven capital quarter positive and on including

XX% For the guidance generated no billion to is cash There billion rate. of an change of billion flow. of $X free conversion $X.X we XXXX to year, flow free our with $X cash

challenging expect However, we markets the potentially worse do in continue be power expected. we XXXX, to and than

Additionally, our which headwinds progress in accelerated the is cash quarter the our in fourth collections particularly quarter, some the free cash quarter. always will lowest flow, present first to

with We cash, planning are a restructuring at to operating And execution in incremental heavily our are Power. We rigor focused we tied quarter. for on cash quarter on evaluating cash compensation free negative performance. flow first and remain

We will decisions this made. on as are update you

Next XXXX. not see but left-hand through the I for is of this, going the side the cash to balance can of am all you on detail the walk go page.

GE, $XX.X of billion Hughes ended Baker we Excluding with $X.X billion. started the cash year and at

We improving disciplined with are balance of framework. a capital our the allocation focused on strength sheet

of quarter, new our greater flexibility which operating XXXX. During $XX security the executed and billion credit lines, we we execute throughout transition as provide

than end to billion cash. expect XXXX We $XX more of with

Before I items I cover through other the quarter. segments, the the for go will

synergy-related. an was charges. which we Baker actions represents additional at Power, Gas $X.XX of restructuring our to Oil we related driven taking We $X.XX most was & Corporate, cost-reduction GE's & primarily GE, restructuring, items, and of are First, that Gas, by was our on Industrial of the related portion Oil Hughes and Renewables. and of other incurred to excluding segment, incurred $X.XX which

of held related $X.XX these for to exits the at taking charges Aviation. XX several in related move to assets we X we our to decisions incurred focus We as are platform to a charge $X.XX and announced in intent Lighting sale. portfolio. have We businesses resulted some meeting, investor we our as November actions the Second, to exit and covered

incremental In the addition for impairment held-for-sale power recorded to we impact, charge $X.XX a conversion. goodwill an in

became value our written the goodwill, of power the conversion could which off. now has support that began we remaining clear fully it been actions, As portfolio not

insurance and certain disclosed charges week, incurred related taking we to Capital's $X.XX business we Capital we last GE shrink of As businesses. GE related actions are to

related will a items reform. the US cover two tax pages. We these recorded next I $X.XX also charge on to

right all will the through the you given of of pieces, page, walk I just On the a reconciliation bottom EPS. moving

$X.XX Insurance of reform. tax excluded that full-year You October which excluded GE $X.XX, in and will portfolio-related It Capital-related remember charges also guidance provided we to actions. and

Insurance adjusted -- adjusted we the to $X.XX. related EPS Industrial the a at we related we EPS reported fourth top, $X.XX. the number results $X.XX fourth-quarter In earned the starting of through So of quarter. reform Verticals from provide. $X.XX actions, This for to GE $X.XX and the of and total-year the our negative EPS range related -- guide Adjusting $X.XX, third $X.XX quarter, were in end EPS excluded that items our of Capital portfolio, tax to was low at plus

and week, Insurance. As $XX contributions to funding be billion, plan. impact $X this pre-tax recorded to We funded from XXXX $X.X billion. will which of capital $X.X our capital charge our we annual approximately allocation related the mentioned last next XXXX point, At don't estimate expect contributions no to to There our this that estimate impact to was ratings XXXX after-tax approximately billion. we charge requirement be will over the approximately and an we years. $X related be statutory The XXXX billion we billion a of seven will be

the exiting We and GE reducing Energy focused, Financial of Services make Industrial including of Capital are taking actions more Finance. to size most

we recorded result, EFS of quarter. at charges the $X.X in for non-cash impairments billion As a

timing XXXX, million the could earnings depending in excess and be sales. post be breakeven. the expect And We or debt to asset as continuing XXXX in $XXX XXXX about of expect runs be Capital GE actions we to on earnings GE higher lower That Capital about off.

$XX ended for also of from year GE cash liquidity. expect the Capital. and GE We dividends future billion with do not foreseeable the Capital

until long-term contributions. reduction incremental will the previously note which agreements. XXXX, planned that recognition as expect leading the insurance well to issue expect is as fund are provide to to asset year want investigating the the consequently SEC communicated. fourth-quarter These to debt generate the billion increase over Insurance they to and sufficient have continue actions service I $XX also to process And years. two actions of GE's than reserve We also a cash charge later approximately revenue next from that liquidity notified by and controls we been the don't for

very fully We are with cooperating in the early is investigation, which stages.

billion last finalized GE a tax to tax longer impact available on tax $X.X $X.X is our since reform, we billion tax partly the review. new $XXX impact credits million. was billion Of $X.X billion Capital benefit from the deferred charge, of the for billion the Industrial slightly our will call Insurance by to and of US as driven be overseas transition write-off $X.X and relates revaluation The Next, reform US existing positions by from the in no of law. increased the that $X.X $X.X billion, offset week, the on under tax earnings use

We than experienced Longer be the credit to XX%s, to transactions over in next over the payments benefits the existing the is and excluding attributes, largely Industrial as term, our impact last related the the several tax to offset have history. disposition from tax cash the higher transition to the taxes. we will This credits both tax we required. to lower low years compared rate due expect loss be losses, recent mid expect rate years, modest to few

our in these a equipment billion Power, detail US with tax we down in of pages. Overall, services the billion of positive for years high several through our charges segment walk expectations. million, dynamics companies. and few take reform year-over-year that market expect impacted down think for headwinds $XXX Russell operational Revenues the the the for XXXX significantly expectations. $XXX and XX%, quarter to Adjusting versus issues of were the negatively was prior will then about XX% year We which million. of down quarter $XX.X the by over the fourth mid next On as will through still tax business couple items I'll you you we a was to and is of the experienced. for a XX%. We $X.X profit give well rate and below overview were well quick be quarter teens. Op Orders more was execution real Russell you as items, had and down XX%. below incurred and below volume

and X.X increase see were equipment driven with which product and on to cost-out, X%. volume price equipment about was re-powering Next times. have due megawatts, orders $X.X a In Operating lower US up and growth, X%. up reported reflecting Onshore an pressure an turbines. by process. on price. pricing as during XX%, orders billion, down were down X% up price was orders significant driven Pricing in the being of were unfavorable XX% was partially for we significant XX%, by year offset international very strong down mostly up total Renewables, remain US been The gigawatts. up XX%, by wind We've competitive This was XX% bid across lines. up basis. to which the is were $X.X competitive, by particularly billion turbines, the continues markets the strong up moving on Onshore XX%. was orders. seen wind. at for but in X% Offset business market market equipment pressure down down megawatt Revenues and by XX%, wind driven offset cost-out re-powering market. partially the was service, $X.X all it headwind. profit booked international This gradually US strong The was auction by organic focused is using quarter. re-powering continuing services, reflects The a X,XXX onshore X%, reported year total, X%, dynamic orders But to offset X by markets organically. down Renewables onshore billion, onshore XX% with up

turbine year, by by quarter year, profit XX% price fewer commercial $X.X the of XXXX, offset billion, quarter totaled grew significantly in in over X% the a lower this X%. Equipment were continuous year driven For Aviation, first up US engine XXX Aviation op expect revenues grew down Equipment XX%. versus legacy LEAP XX%. quarter shipments rate quarter. number down profit services XXX were shipments. spares Aviation XXXX, CFM growth $X higher $XX.X market. we gap, improving at RPK engines XX shipments. revenue cost orders up higher Commercial billion. by the shipped in the On quarter, to The orders shop orders GE higher orders up margin commercial on flat pressure expansion rising fuel Services positions mix, and XXX billion, engine on mainly million and we points. LEAP billion LEAP engines engine day, basis Revenues shipments, offset in were on with last at LEAP and record down of costs spares units $X.X and X%, X% partially military $X.X engine In LEAP year. in X% up for continues grew Operating and by of performance. cost another and in engines and productivity, specifications expect value higher both reliability military. of volume Operating service solid perform margins LEAP XXX delivering had was partly visits. strong the driven high-single-digit points a favorable and continued and expanded growth basis despite despite delivering to

X%, is well up executing $X.X track to were of for X,XXX ramp. mid-single-digit are with LEAP year. Military a emerging orders is core by production the by by the organically, by were and up XX%. On XX%, imaging Healthcare Life Healthcare Europe, cost-out holding and XXXX. to X% mammography. grew LEAP CT than billion up more Middle in X% organic by performance XXXX on grew growth. and Geographically, a on committed ultrasound of orders delivery up up and on commitment higher by in by product XX%, systems orders on X% and our is with imaging basis, meet the good driven of engines US, organic and driven China East bioprocess Sciences in X% volume versus team margins up engines basis, track X% X% markets The flat driven grew X%. despite in steep up last X,XXX X% We an

a and For a imaging was Digital. of up the Sciences the orders $X.X small XX% with Life by higher and non-strategic quarter Revenues X%. of X% HCS organically, organically, on in Operating including with up profit up core a billion grew Healthcare Sciences X%. gain X% X% disposition grew XX%, up operation year, bioprocess Life in

XX% offset to are op right programs move driven Healthcare continue we business had which operational expect gain, market team by in The similar Underlying relatively volume and dynamics points productivity, the expected price expanded year is Excluding Healthcare by and while XXX throughout basis a strong to organically, Margins we by program be drive improving to as profit XXXX. rigor, results and reported. strong the in in invested investments. grew the the XXXX, partly year.

were X%. in primarily turbo million, driven realized This organically. million machinery were $XX the a $XXX earnings Orders Next, business. and quarter business on The down XX% investors XX% team billion, And Lorenzo our of down $X.X the businesses. reported Oil basis, in today a and mid-XXXX. down Hughes were oilfield since GE in Revenues reported XX% their were will a.m. On Oil legacy down equipment $XXX up at forma with And his basis, financial & hold & down billion, million Gas, and about this the $X.X and deal X:XX XX% at pro down by forma call XX% pro results reported was X% longer-cycle and combined synergies on was Baker organically. closed X:XX. revenues Gas morning its orders and X%. released profit up Operating

XXXX, driven cash distributions billion $XXX XXXX. billion, possible the $XXX included The X% deliveries. international will with On by Baker operate mods profit million, $X for of Transportation, equipment million, Current Lighting, $XX from were from Hughes is XX% business their Mining was the and year. fourth million At rigor and low units driven to for times team as expect Revenues up down XXXX. share partially locomotive Lighting XXX were down the totaled volume Brian and down with up locomotives were quarter mining non-repeat were to the fourth $X.X driven continued down Current $XX GE volume. the last wheels quarter, in be shipments is Class was legacy mining X and $X I orders Lighting repurchases a for up locomotive Equipment on continuing call million, we in XX%. from down X%, units, about XXX primarily driven restructuring. Op of In to which locomotive quarterly with by down and up of the or more XX%, quarter lower today. was orders transactional X% zero orders large by $X.X revenue year. on billion orders billion disposition. total position from comparisons. of details offset business XXX Services Lorenzo XX, engaged profit were XX% and times. During partially order including orders actively controls down volume, offset XX%, volume up of down Services by dividend we with of Current and Op cost provide last million. versus mostly the XX%, X were revenues $X by and by

GE Finally, I will cover Capital.

GE column, I net of excludes column through the reform. primarily billion with talk operations billion Capital associated GE million continuing preferred exit $XXX income covered EFS income excess and generated adjusted driven net Insurance income. the the earnings by in reflects partially we largely gains. cash earnings, prior in and On by $XXX short-term generated equity gains and driven by you costs. The base in Verticals million benefits, the plan. core will investments, earnings of $XXX with primarily tax $XXX expenses quarter lower of XX% Capital. assets, billion those Capital the ended million topics which down of of related with expense, provided of by The were from impairments offset partially GE Other and operations billion page by the benefits higher higher of including impairments, and third the quarter. tax tax and I the Since year, $XXX of in the in million, both offset EFS adjusted operations million and Discontinued $X $X.X operating $XXX charges, adjusted the of restructuring net effects driven earnings the quarter, HQ costs, line quarter, earlier, interest $XX reported core

I hand to over it Now will Russell Power. to cover

Russell Stokes

And with you fixing the we I Thank will let But in outlined dollars orders, I I we XX%. through the capture fourth business. prioritization $X.X spoke a holistic business you Starting on Power in income. down down Aero productivity at prior total a talk December, announced XX%, year. being the quarter XX, with the in gigawatts anticipate, nine in awarded opportunity versus reduction unit of first XXXX. of X footprint. ordered GPS of manufacturing indicating to performance, cycle driving gas in am operating below versus increase lowest noted industry In services results year. upgrades that XX I return units, comments scope. combined XXXX. quarter total-year Equipment confident XX detail will which impact is for pursuing significant our believe on be we the still a by orders focus contractual misses, the what the the be in the what of line were run global even about lower turnkey orders move of base units you, a We Jamie. had with with XX and the the year. year, on versus November. X in to On I in could orders total though, more installed XXXX. versus expected, down said shared to heading commitment the I right-size quarter since In market cash a softer that November for our gas in up prior doing billion XX, XX% we versus turbine per than gigawatt And XX we in also down primarily way H than in quarter, by were last And and view roughly a thought coming more that versus to share XX,XXX-person in our eight softer on improve XX%, me and walk are year, the our driven were were with We orders the market units the forward. driven a units Total-year lower, gigawatts units units prior were XX with Mccoy the year at XX prior was with X in year. turbine December, down portfolio. that

revenues all some aero particularly form XX accounting XX% were working be the to TM services, are quarter, lower market offset within support Aero of of the that orders, quarter. were We solution $X.X XX fast-power XX%. unit year, at were XX XX as orders in was billion, Equipment revenues and In on of X Service These serve XX% down Power up gigawatts. geographies units, usually units, on units difficult shipments typically This accelerate convertible last in a arrangements. Total-year Aero could low units. was require partially for last were customers AGP to efforts units $X.X billion shipments the which were versus down decline. XX aero XX% down additional year. higher as lower which XX%. our are restructuring versus down grid by XXXX were XX. versus financing

XXX in more XXX H nine This gas the year. than line expect our would XXXX total-year quarter, in including the to first be We to last the we shipments XXXX, with In to XX expect have eight puts in November. shipments to the in lower total XXX, XX%, put to units believe XX our transactions half year, be in on range. in gas AGP revenues H the the outages XX XX aero and range last AGPs X totaled versus prior in provided range. but at end that billion, shipments the XX shipments close to XX-unit that year, turbines CSAs We year, of XX XX- turbine at shipped will XX%. lower at we XX versus XX the of versus XX were of and with pipeline down down we Services quarter estimate we the in This year. $X.X count. unit shipments XX% units, down upgrades

or XX down For $XXX $X.X we and XXXX, about XX% Op expectations. million AGPs. significantly billion was our of profit expect below

$X.X the billion Let me decrease. walk

an and operations. Conversion. and primarily just damages, Services and GPS, There volume, driven litigation and FX fourth of little I Power comprised in pricing, Power and Jamie Services, primarily mentioned, decline XQ the cost our in a year-over-year accounted the decline, of was of lower decline liquidated Power unit Systems, favorable business, underwritten ago. million million on unfavorable there logistic on million costs, aero and were higher amount. bankruptcy bit of unfavorable project the remaining quarter than and Water non-repeat issues Power Gas absence discussed. that one contributed Market base our the remainder by this of of from in of to a the upgrade The volume business. slow-moving As shipments primarily Grid, about Power service $XXX XXXX, sold included cost several and years The million The partially settlement, about was cost our The was $XXX execution million. XXXX, half roughly was related income, and $XXX field transactional less were in charges, the in cost, was overruns But of turnkey inventory by as driven which products Conversion by about of better distributors. was by remaining of offset $XXX mix of for $XXX obsolete execution

the throughout provide page. next significant highlights entitlement. team declines per And the Strazik he performance. on that Scott intensely These details put been rate dollar in our and on on more the opportunity services margin installed Power Our focus prior Services' of to And outage have including declines in base role has of our the experiencing CEO. penetration improving are and the focused margin margin on in saw I holistic year will related XXXX business, versus fourth with in been quarter we year. execution. we've are cost transactional Alstom, what improving consistent pricing

longer mentioned I were Deals taking the close softer are As earlier, the competitive. year, very expected. than to for markets and are

our for the are XXXX in in expecting gigawatts than XXXX. markets a we restructuring the low be to that are plans XX market We preparing as as gigawatts XX be less and could

gas proud operating of with the guarantees. HA We turbine is technology. line are performance in It

issues process. organizations project related curve some had to working commenced we've While have chain considered And at to readily learning address volume them. and we normal ramp supply certain and sites, things on issues address commissioning

of We units XX have installed and to units specifications performing hours XX,XXX and the all of over with guarantees. experience,

support I'm some I committed outcomes we that deliver their absolutely to in and well to how for visibility disciplines as Next, as we making Since business. role, forward. and progress taking the look investors allow to our them are for the excellence to the I'd you rewiring give customers. of required am deliver the by them reiterate want moving to continued into Power to who encouraged are our the to us deliver like customers, operational

a structure strict million of cost our fourth reducing achieved focus quarter, in Our million controllable first In with cost-out priority in $XXX took pools. is on and we footprint. our out $XXX costs, structural XXXX, with

addition, repair In footprint a sites, in our reduced XX% of line XX stated with manufacturing goal XXXX. by we by reduction and our

XXXX started $X a We outcomes. and We softer to all and deliver critical reducing this, with we on them successful of a XX% building truth more in single the and us with we total ERPs critical our accomplish accurate reducing number working in teams to cross-functional in by focus performance In in capital outcomes. is interrogate us our to for with customer lower-than-expected meaningful of of XX favorable business-wide aligned This ERPs, invest dedicated drive group as must billings, collections to the To implementation management track excellence continue and and commitments infrastructure. which rooms is IT with very year XXXX, this on we cost and in Company to business a project quarter. on our SPRINT and to The past are areas critical XX source XX scorecards orders. why of our these new opportunities too war complexity, demonstrated created much market assessing XXXX align focused team a operational well by are on are systems quarter, digital leaves employees far Xs track to committed during by for teams me. previously timely generation structure reality. billion is we for need ERP the operations further our results cost-out the and cash for and factory. material Still, with contributing disciplines, deliver system cash dues leadership the despite performance, information major why the allowed and working to our The progress Greenville our of including the clear giving our

achieve are plays Power We have clear and the performance executing clear goals them. for to business established

centralized an into quarter, am and milestones to we execution per outages these We've X billing installed yet can around and current that get identify our on lean, to billion to progress deviations. cost penetration. by can turns SPRINT moved focused a there. finished GPS world see same with by great times to on improve into laser-focus the outage launched our services our our reduction inventory transactional in by requires all team We already our XXXX, we we overruns. $X fourth on dedicated on execution plans In site performance turns the and In by example, performance that a Grid efforts improve margins, detailed the technology monitor are driving digital or XXXX and not were increase XXXX. To teams, project the attacking and material in a This and schedule teams conducted through X cross-functional all from holistic XXXX, to base region teams the we tracking. of a balances focus aligned on account commitment in ERP in inject with lower we management linked goods. liquidation for to processes, the dollar of we all in XXXX a visibility blitz with cost were confident accountability a capabilities I clarity volume believe existing that For ensured we and even inventory launched schedules and business application.

result, visibility XX% to we into in highlights higher improved our October As a billion XXXX our $X this $X entitlement from rate. opportunity We outages XX% to believe an than run in is up fleet, billion transactional today. that the our

We and portfolio. on teams deliver transactional our incentives the to and have both contractual organized commercial compensation

more were that changes leadership identified a have we executed team focused felt on new is alignment. We those and additional with have accordingly. services necessary The leadership

me. Our Power leader process in of supply leader reporting is in to directly are Gas And our chain transitioning Systems. the we new,

important contributor before, But said the will mix increase will XXXX fundamentally challenging power forward. to another I the will remain gas be to year. going gas and challenge an markets. I've penetration As continue energy Renewables believe

We have is largest the base expected. as utilization installed to are and CSA performing world's privileged our

by markets, improving have which While we IPP commercial we a outage driven in under reduction saw in whelmed and the a transactional the we sharp this extended our in year, capacity overcapacity, upgrades intensity and execution past. market, service are intervals, market

our can As a and services the base; manufacturing and installed maximizing we expanding strengthening cash project, power culture. business, margins; we leadership and product, service conversion; control: on improving are things reducing footprint; and dollars focused per structure

We ahead, challenging have a face the challenges road we fixable. but are

John Flannery

will There's positioned portfolio this up will be we lower earnings guidance. tightly. wrap XXXX. or to industrial our XXXX we with Healthcare to Power change in tough, cash Aviation I free and manage am to be but deliver no the Capital to continue Things, are going flow actions are markets taking. Russell. the well to framework. EPS due

$X had focused are Jamie on we At improving mentioned time, $X and billion same are free to We move billion. payments XXXX. into targeting CapEx. cash flow we progress of reducing capital the working some

making cost are progress cash. and on We

ended Healthcare We of company cash. Industrial Power team the excellent sheet on the Russell of and the year with performance our are the for had balance fixing and support focused GE well behind XXXX are $XX have XXXX. Aviation positioned they and and billion in strengthening and are them.

and We’re better running businesses simplifying the the portfolio.

I it will you. Matt, So over back with that, to turn

Matt Cribbins

the for call up With open John. let's that, questions. Thanks,

Operator

is first Steve Our question JPMorgan. Tusa from Instructions] with [Operator

Steve Tusa

Good Hi, morning. guys.

So I have questions. two

around with and here. lot profit, there moving base one, a the is lower First

you then guess I specifically And was think billion I profits. guide are going What looking of $XX on the for those to with in regards kind be the prior down segment to year next was segment $XX to range a Power billion XX%. all approach fourth Has flow. metrics? as and seen in to the changed two follow-up, next guidance that contract negative year cash the quarter what of free in asset And we've your selectivity? here relative at to billion $X project

Jamie Miller

November that So look Steve, back XX. XXXX outlook, when Industrial. how you thinking the are had everyone about at no we Really, change we is out on to segment for there laid

had So how really XXXX to about the before, however thought you ended. adjust is thing it only

Capital The to the about call, the through be think GE Insurance about work that Capital you And of next about second actions talked piece on that's with is other breakeven to year. last we week as GE would think about that. thing the

still thought something roughly we how change take really implemented that, starting to XXXX. billion. fourth $X about is to Now in pleased a the quarter. We capital contract that on we controls consume to the to have piece, But yet. about that Contract on that are see assets and expect we working we were flat of assets different while that are number not that hold of see no

flow really to expect see in yet. XXXX goodness don't that to we shift or start So that

Steve Tusa

little basis how think Power? I GE guidance a in it guys on profit obviously and then Capital where of segment your maintaining expecting XQ are lighter was is if us performance of below were you base So most a because

John Flannery

of that room also scenarios for back reflected contingency $X.XX. as that different of but each reality for a business. And here. One: to deep context. just the franchises really the I that businesses, one, $X We the really number that November indicated on business in allowed of thought businesses, the of we some that fall up for the of the you. came review work, the up with on detailed Steve, is with range And thoughts of couple shared a did leading in dive So as very into a how well, to we

model, issues immediately solving on and we count GE for working and definitely on team have strength see opportunity would But for to them in then put Power Aviation, more thing Healthcare, is a you obviously. Capital all And also through mailing just pressure us can of that's our I'd say that to I not strength in last the transparency, and So back right we the say cost-out. dedicated investors. issues but

So range we feel can we this comfortable ‘XX. in deliver

Operator

Citi. is next question from with The Kaplowitz Andrew

Andrew Kaplowitz

good morning, guys. Hey,

Jamie Miller

Good morning.

John Flannery

Morning.

Andrew Kaplowitz

ultimately John talk expectations us you do the just on or your Jamie, dynamics quarter's saw collections fourth your expected? in about weaker execution why can cash more What about XXXX on progress did stronger than business? you more you were generation does cash in dollar to the can you deliver fourth timing? color confidence think differently cash in give that teams deliver And the the the a it the you quarter? Was better performance cash give you And despite can quarter?

Jamie Miller

the comment go of your can pieces will flow I through on cash walk it. questions you fourth-quarter I as and Sure, through the

things of us quarter. lot saw chunk capital the across liquidated that just we working a about billion progress fourth were of the mentioned by shipments the accelerated billing progress, So moved fourth-quarter across inventory, helped the But see, We did as and really first, of strength milestone in board earlier, A some is On good that we payments. was $X.X about inventory. through. $X.X as into and billion quarter. businesses

team That saw timing by past but points. dues year, look expect. in didn't the movement the in of you receivables, done $X Some of When there. some nice X we has We work about billion. did And very we was that drop about fourth operationally throughout quarter. a good that see terms drop

on assets, then work was XXXX. before We I as expect into go contract the we that that to mentioned deferred And flat. really continue

on do on at and just Some several when are of about we're not at underwriting, the returns, how looks through really really the around costs making why billing. shop you coming are to zone the these think and bit profile really the we less little contracts sure how through a in controls revenue importantly only our lot with of Aviation, on much revenue which that things implementing that pulled flat Look, lower cash just was but strike of it a tighter like years. look out we that timing going quarter, had

are I'm done with we've So not while we years. this Look, effect the on couple expect yet, what seeing happy see these the over to next of do of controls inventory. we

was goods with finished we work were work really year on more more I'm and AR. see flat more. lot Good to the a opportunity lot burn-down to But the work assets, on to think again, expect also favorable. then I Turns it. do contract inventory. I on a And But here. do more have think pleased here and for

John Flannery

is thing X,XXX the say would our of investing variables. just It effort. is Andy, and a and here and different visibility are the requires I other we a execution, flow lot lot working cash of time really that's where

customers, performing front on we how are from do inventory, we manage billing. interacting execution, we the end, the how the with in involves it are So how we really how everyone terms, Company, project the

So process the I seeing -- team Healthcare it's pieces, good moving many, mechanical just this moving deep highly quite into are and just we dive running a in had pieces. a many

other The just say, for thing I would perspective.

number mentioned in our focus. the is that I As one opening remarks this

into we had numerous said the pay for As the team, teams, our we we go before, XXXX before. our structures as for incentive incentives structure for

in have We XXXX. two

flow. is One those of free cash

Company the around cash and incentivized focused flow. So is

Andrew Kaplowitz

Thanks, John,

Operator

is Sprague Research. Vertical with question next The from Jeff

Jeff Sprague

Hi, thanks.

things. two Just

guide. to the First, just back XXXX

us the we've XXXX, tough that, right? I seem So or to actually segment it X% for be X%, it you if rev be Doesn't there. going think to rec, where up Industrial on November It I'm something are seems so grow could mark it you and I a don't basis we an little you it's like expecting line. profit below get what is on in then know give Maybe outlook, on gets adjusted you what profit XXXX. missing. $X am X%. correctly, X% relative seem billion just your So to heard down there's exited to the understanding color that guidance does like to what I Industrial to take to like where dollars

Jamie Miller

is fourth when to where there. would was would the XXXX you Jeff, look in had land where that quarter. the we quarter point probably And Power tough I Yes, thought thing it you versus a lower very did, it at substantially

really you were themes when Power, Now, or two deconstruct the fourth there. really there main for quarter three

One of and which non-repeat one-time sort items. just adjustments of some is

aero market, we Another AGPs was units saw as impact we lower than expected. of the and

about of million, come was took. that don't charge obviously as and really piece around And obsolete in, expect for year. and to which $XXX We get next it, into as team about half that Another first, items is and inventory we execution. we that was Russell have the operations of a repeat one-time the slow-moving

AGPs. piece was million a other aero the in and The from saw market XXXX. the and both of non-repeats market it, across that The piece $XXX business third tough of we quarter fourth

And color it, piece that Russell we then on here just execution, Project more cost unfavorable operations and up. higher in saw into Now, down. the field XXXX an in and on then with as the a to And little expect PowerGen, overruns mix. costs Power and levelize both transactional bit We and second of back half Grid, services do give Conversion. can of a get more bit these. a we

of very Russell tougher a as some the of color into mean, in year stabilization activity And all important half above stabilize bit Russell, want get services. maybe is second give was place. on you we be we the XXXX that. some I in Now But these Power that areas, On expect on putting see and XXXX to more to year.

Russell Stokes

that We through XX. we had so throughout to the XX and Jamie million. we Lower and the dove related softness execution, I within versus and in XX are at at fourth been up have a overruns Had the XXXX, we take services the about XX in services some better. working On market XXXX what do we that X units gave there. is we projects, in we need And contracts. as and we deals quarter Jamie. partners with through mean, those the were critical able disciplines quarter to talked Truing to navigating run are were adjustments that Jamie right, then market real everything in that element lower place. cost aero can with Conversion in to was Power needed was back putting are into the versus better that controls confidence down milestones number better XX, hit. estimates timeframe. was that the That's those right. of $XXX nearing legacy dynamic the We feel that to on we we that forward in around year. us to And of just transactional deeply navigate of XXXX. business projects be. underwritten go going conclusion were upgrades, came in we costs They as continue of XXXX, there the

XX% of cost would assets see than actually like. had have with $X the to quarter. all our going versus nice softer a the we we million in in I Back out, those mentioned visibility $X assets, go outages Scott there be outages. that is the what with looking And team XXXX to we even at the that October, we the field, finding those in did billion continued those of favorable to installed field. of us and of understand cost able the now, have is those only job can But opportunity We be think XX% for run chase. working associated why done to $XXX to rate, it So of billion, good which a performance pressures, really at and

Jamie Miller

You I clarify. would know, Jeff, one just thing other

roughly clear, changed to be what of the had you was element modeled ought XXXX XX. be XXXX you similar thing XXXX, November now. modeling that is to Just not the probably what for to The

John Flannery

would I ran when through other Healthcare would here. whole I each outlooks say and in difficult the business. look period, I but Power, number one is very we Again, strong it's important performing It's still strong add. But point -- Those in scenarios about This Power a very for a a point I a talk obviously second. thing just again will of Aviation. a businesses going at Jeff, you And very we well. franchise. of have are really obviously would franchise this And focus discussion. out,

the XX% have We technology. in high-end share

installed We a of have got world's large third base; electricity. the a

there ongoing plenty electricity power. a new as It's show decades from we soft. clearly the in unit the coming market work So growth X% do for we to X the is with. look gas all But to -- is analyses

on execution, base, and project business Russell Russell to So as this get And of in terms management working still processes. the cash as manufacturing walked there four do and opportunity valuable that. installed out, that and asset. inventory really there's the footprint, the maximize rightsizing the in he value things lastly, that in franchise And That through. very track and the itself. to is And a basically the all the capability is improving laid of over then bandwidth is

the changes management obviously made in structure a business. lot of have of We that

a So it’s most to it of important into of make and ‘XX lot issues We an and would is the still a that. going ‘XX carry we’re business good Power. said work. in franchise But

Operator

The Winoker next Steven from UBS. question with is

Steven Winoker

you and see John do reserving, maybe that on the a you Good side in for the just of us it. all. level do sensitivities of some -- Thanks. quarter? kind here? of window that On reserving there assistance the are and that frame or we've you frame in other give seen operating the the downside And and liabilities by changes bit little quarter liability Jamie, help disclosed around of what could maybe morning, you quarter? How do WMC just

Jamie Miller

we we other will and Capital, which two. through So the and which of are that GE other talk we That litigation-related, some things trailing have around some indemnities out and play will got are we million. We've Steve, on I the some there. hold GE Ex-WMC, of just over WMC obligations just of reserves from $XXX year about Capital or assets you got next WMC sold. monitor

conducted DOJ, place. also disclosure fully we reserved pretty was the We at good past. reps you the being that there warranties When by there at and components I on -- WMC I are out One think couple million. of well. that The $XXX the we got that look think we've that's there think FIRREA lawsuits investigation is that the as itself, reserves those are in is in a disclosed right here.

the not We yet had have substantive with discussions Department. Justice

there, We are so don't want the on that speculate process in to one. really early I

Steven Winoker

that in quarter? reserves? raise all out didn't you The the And

Jamie Miller

No, we didn't.

Operator

The Lynch. next question Merrill of is America Bank from Andrew Obin with

Andrew Obin

Hi, Good morning. guys.

John Flannery

Morning.

Jamie Miller

Andrew. Morning,

Andrew Obin

Yes.

to Just XXXX? But to at a collect expected Baker of terms twofold. your price I exposure Water at impact would've in your think for in sort energy-rich of on the do your what also better question regions, does better that Hughes. the of oil question And dynamic is I then business. ability looking

Jamie Miller

across regions I'd look oil-rich So the call X:XX first of a some order and on finance take where you see those Baker When of our One Hughes, will in at through from we say did quarter. Lorenzo perspective. uptick some a businesses a fourth they things regions, in you that. have is Brian at the couple

of really Oil the work and more particular, favorable ‘XX. this a collect in of I think through other can business longer-cycle terms ability in issues, In the In for it's really Gas a operational us here. be some to & thing

in to time oilfield some while services, that over activity turbo you when should things machinery the solutions, So think about recovery, benefit. like we see starting are

Andrew Obin

outlook? figure How can. about I What if your that follow-up a EPS in does Just divestitures?

Jamie Miller

When you look at some moved those the this we for sale divestitures to -- so of quarter. held

that a -- on right and and We the in well, through. XXXX come the on value about be now right to timing business process now. we've have got ones, today. that product of we The flow and proceeds free billion when based estimate EPS, got are There handful in smaller cash is impact just should based no see of $X that billion to for $X range sales, on

But know flow. about and cash that's it's of free $XXX Everything You else of through, really Baker are million ‘XX more Hughes working that Transport we thing. IS. probably and a about

John Flannery

pricing good just of add just good. those would around level that the level I looks active, dispositions Andrew, in activity smaller interested, very terms of

what like far seen we've so we So that. on

Operator

Research. Our next Davis with question is from Melius Scott

Scott Davis

guys. Hi. Good morning,

John Flannery

Hey, Scott.

Jamie Miller

Morning.

Scott Davis

and look costs OE probably Power part at to taking a side. but comfortable of at I on one was are should -- just deflation Power. that I the in And we're If out, around price you're in insecure mean you of, model just don't bit our say, least I that little it's

that of I on Russell just for there. could that we side, comfortable rate think we've XX Or that on service fill you as are has maybe But Thanks. change? seen us the years. where in the stand stopped

Russell Stokes

transactional the Yes, business. so on we continue in through to assessments the side what's the happening of work

is portion say, given we've that There around should margin we felt that total to have level attention that that been So of would to did price an paying it of attention, I not performance. holistically now, had acknowledged element we just we have of that up on the have the we business.

be able better go look still the in forward. exercise feel the that progress. at we in offerings cost that to and We around that is be set fleet product as a we place of to some team how a is to that ought able see things the transactional stabilize. that taken support to work past we And through But actually the as provide working overruns the execution I also Scott of acknowledged well. with had

Scott Davis

You are into guys maybe Russell, projects and little on -- Is your weren't I changed something that the made that some competitors And said more is had mean, that your going the GE of a decisions economic. watch? tough that contracts has price. in you materially always So that under one have things with discipline? bit past

Russell Stokes

is we implementing that deals board, governance the that do managing new good from practices. price, that performance. process the is cash The are more going believe on are we is as go our zone to than past. terms would underwriting process disciplined I across CFO a tighter a and definite it of different well willing for strike be with to say levels myself in are than much So we that the we in us and There was long-term. And the

Operator

next Khanna with Cowen Gautam Our and from is Company. question

Gautam Khanna

of assets, interval Yes, right that the are scope I in along expand investigation whether you and if of into just the and balance contract you fidelity wondering on how nature now? review - that far SEC of was the the could

Jamie Miller

one. that on comment can I Sure.

I've you look is this, team, something And got deep This to exhaustively SEC a level would at over deep team. it. controllership reviewed a CSAs, as a we very finance really this has ton a I the that take space, started a is of spent Company the We've So years. its that days. early have the on tell time at

there mean, see pretty I just on come have I the into review point. I this But Look, am is through overly much I that nothing see role, don't with in I am look, it. concerned about. anything But everything I deal a will finance. going if something, John, at here deep we As like very

Gautam Khanna

And to your early point, it's days.

to up Just -- follow

Jamie Miller

process the with in days yes. SEC, Early the

Gautam Khanna

that on an up follow extent Okay. we And you, reserved earlier is the to there some to maybe liabilities the for have or where exposure on what isn't GE fully question not reserved any curious it? have would residual and exposure, Capital now. of on maybe Where possibly that I'm WMC just potential is -- some it's for.

of bigger that that are liabilities gone have in was in Just from about you? everything just of last we of actually hit because than to bite discovery -- years talked I'm charge some us and did us? the we curious you've expected. the that mode week I could through was back or you still QX going mean, the kind

Jamie Miller

gone reserves good a And our think got I through think inventory what we've appropriately this, set. see. we've as of we are I

out, of FIRREA out will plays will the point to If And early the this and Justice. we goes. work think with Department them. see But next over GE I really actions we in that as play land. look, how will take to need the is that year speculate two or we what where additional Capital, really on it's too at take that could

Operator

Goldman from question is Our Sachs. Joe next Ritchie with

Joe Ritchie

morning, Good guys. Hey.

John Flannery

Joe. Hey,

Joe Ritchie

I some made you related receivables Jamie, cash to you timing. sounded to XQ. timing flow better some being in to XQ the partly a wanted reference in question. ask Early, It like

curious. just I'm So

the $X the Is timing? then -- you relates expectation this to should down then it of cash it year, were of worse it about number last flow than be year billion As that flow. because I last was $X.X guys XQ XQ billion think to for partly cash free

Jamie Miller

than than don't last it be be expect I I to worse last it better expect to year. year. actually

I think to what going you of a a see, is are though, progress timing. bit around push

And were we hit remember, you coming really Renewables should ‘XX. progress If be XXXX into in into by business. a non-repeat going the that

progress So Having that we around. ‘XX, of fourth that's going first and with should back Aviation, us. timing be helpful quarter quarter the to to with Power saw that said between ‘XX swing that, of

negative, expect do year. to I last it So bad but be as as nearly not

Joe Ritchie

you. Got it. That's helpful. Thank

John Flannery

cash whole is orders commercial supply around our on that focused What with that, and beyond chains discrete our driving Obviously, move a Just behind inventories deposits machine the things and and thing. those and terms. our things, in manner. really we're

bit overall will is the on orders. you are move we how these managing tracking based a machine, little around But are will. discrete on So really if we what doing

Joe Ritchie

you the expecting $X no in change improvements on there's or been then point, so John, that XXXX? in it. billion Got to working are And that capital

Jamie Miller

correct. That's

I fact, should it be better In than that. expect slightly

Operator

Robert question Stifel. McCarthy with final from our comes And

Robert McCarthy

Good morning, everyone.

just conceptually the is are on potential years cash, CFOA, about in years? could out Industrial. headwind the raise in in How that does for question How that out a rate purposes free the be Industrial and effective the first you tax for cash? The how modeling affect just thinking much of

Jamie Miller

I think of should impact over the small. quite the next several years, transition be the tax

rate We are next mid- as us got continue losses carry deductions over modeling and we've and other couple really to that credits years, high-teens the through. of to tax will

we As low into rate get XX%s. that will out moderate the the XXXXs, into

In for terms expect a the that modeling, we of in near cash shift the significant don't term, profile.

Robert McCarthy

longer over headwind? obviously, structural a term, But the that's

Jamie Miller

our we term, it's three what this tax have I to speculate hard that point think is. to on years positioning four I one. to Look, at think longer the see Over out

Matt Cribbins

Thank you, John.

John? for like will our be we Reminding everyone up, thank wrap today's you. to replay afternoon joining on I of would available just investor To that Before call today. a website. this

John Flannery

as are asset we at by on I'd a said, we effective every just into is as and there really ahead the three deeply One more own quarter wrap thoughts Matt, we saying then that in move focused look is, running XXXX. manner. Great, thanks. up I

right those XXXX. really the cash, team the we call costs, resources, to did on how those. the of in businesses option need three Power, capital not context. core right that are Aviation, of investment basics about whatever will that's in November takes have have project to on at I'd think back about in to just we QX. signs are in that on flexibility. positioned I saw And thinking are like of in And focusing any XXXX, years you We flourish And execution. Healthcare. So and business in really X people, franchises allocation, it the we do and focus about make say really to the months winner. from flourish years into part green And talk best outlook I the QX, think We six sure as really XX most that best the have serving importantly, in of the they that future, we the And it's just XXXX, deep part shoots thing but looking have all each It's a best shareholders. will businesses And XX has now. then incredibly an And those What can team. has that our now, our about obviously, will GE up to customers, I've almost a really -- work deeply I watching years The we a team that for belt we just when now, teams. from desire a it CEO. XXXX competitive the close. to got is I context my passionate the businesses, been it the into our for our for customers, to say from about want for create last and right, the in under other. about be would is

with that the XXXX of into saying into close do and head say businesses, strength in XXXX we as come I strength the to confident the always when employees back can I this. come go just always GE, for and the back would overall the picture that. at I so look XXX,XXX of to And I'm I'd we with and team battle I just

in Thanks. and see we the for will time your thanks future. So you

Operator

and today's day. conference. this Thank you. for gentlemen, Ladies you Thank Good participating. concludes

General Electric (GE) 24 Jan 182017 Q4 Earnings call transcript