The Most Important Takeaway From GE's Latest Presentation
After keeping its collective head down for months, General Electric's (NYSE: GE) management team has started to put itself out there, offering numerous conference calls, presentations, and Q&A sessions to promote its plans for the company. In this, her first presentation during Culp's tenure, Miller largely repeated the same talking points Culp had used. But there was one important point that many investors might have missed that doesn't bode well for the company. Culp used the term "reset" in his presentation, and many news outlets picked up on it, dubbing 2019 a "'reset' year" for the company. That's longer than many investors may want to wait. For example, while Miller stated that Q1 2019 is expected to be the company's weakest quarter of the year -- implying subsequent improvement -- the company is still almost certain to be cash flow negative for 2019 and is only projecting "positive cash flow" (which could be $1) in 2020. When discussing the company's deleveraging efforts, Miller pointed out that the company has "$25 billion of debt maturing in 2019 and 2020," after which (i.e., in 2021) the company will be in a much better situation.