i say to myself if i were larry culp i'd try to get that business together and get rid of it i know youople that work there and don't want to hear that but, larry, that is a business whose time has come and gone >> well, as you point out, jim, lots of different moving pieces within both power and renewables i think if you look at our power business it's largely a gas business today >> eh. >> it is just in terms of size. >> i'm saying the aps and dominions. >> our utilization, jim, with respect to the use of our installed base in gas was up 2.5% last year, right? >> service, service, service >> but that is utilization of those turbines and utilization as part of the energy transition there is no better way to transition from other sources than to gas today. right? renewables can't pick up all of that capacity. there's no more fuel better positioned than gas to run along side renewables be it solar or wind so we think that if you look at that data that we see in our installed base today, we look at the shape of the energy transition broadly these businesses have a role to play our wind bu

larry culp is coming up next on "balance of power."is bloomberg. ♪ david: from bloomberg world headquarters in new york to our tv and radio audiences worldwide, i am david westin. welcome to "balance of power," where the world of politics meets the world of business. on a special edition of "balance of power," we start with a one-on-one conversation with larry culp, chairman and ceo of ge. welcome. good to have you here. you had a big investor call and we have heard much of it. you did not make fundamental changes. for first quarter he did say he would get hit by coronavirus some. larry: what we took the opportunity to do this morning was bring the leadership team in an flesh out our framework 2020 that we hinted at at the end of january during our fourth quarter earnings call. a good opportunity for investors to hear from the entire team with respect to how we are approaching 2020. basically what we said was we are reaffirming our low single-digit organic growth guidance for the year. we see margin expansions in the zero to 75 basis p

on a special edition of "balance of power," we start with a one-on-one conversation with larry culp, chairman and ceo of ge. welcome. good to have you here. you had a big investor call and we have heard much of it. you did not make fundamental changes. for first quarter he did say he would get hit by coronavirus some. larry: what we took the opportunity to do this morning was bring the leadership team in an flesh out our framework 2020 that we hinted at at the end of january during our fourth quarter earnings call. a good opportunity for investors to hear from the entire team with respect to how we are approaching 2020. basically what we said was we are reaffirming our low single-digit organic growth guidance for the year. we see margin expansions in the zero to 75 basis point range, and we think we will see two to $4 billion of free cash, which is an uptick from where we were a year ago. we also highlighted that that guidance incorporates what we are seeing in the wake of the coronavirus and the first quarter, but we did not take a view with respect to the rest of the year because w

continue to talk about jack welch joining us on the phone is the current chairman and ceo of ge larry culpots to ask mr. culp about involving the company now but we'll leave that for another day. today is about jack welch. as ken just pointed out, larry, almost 20 years since mr. welch stepped down as ceo of the company you now lead i'm curious, though, when you look around and in the work you do, do you see his influence still at ge? >> david, good morning today obviously is a very sad day for us here at ge and for the entire ge family those of us who knew jack knew him as ken said earlier to be a larger than life figure and certainly was the heart and soul of this company for over half a century. i think with respect to his influences today, i think we certainly see a great deal of those influences around the company today. i know speaking personally he was a strong influence on me throughout my career, despite the fact i never worked for him. as we look around the company today, i mean, his memory and his influence is certainly very large. >> tell us a bit about your own experiences. as

we've heard that from larry culp yesterday.k that your customers are in control of this situation. if your customers are under stress then theoretically it is not a business you want to buy shares in. boeing has tremendous demand if they can get the max going >> right >> i don't think it has to be called the max i think it can be called 737 because of all the changes they've made i remain optimistic that that plane flies this year. >> phil, i know you're still there. when do we start looking at the balance sheets of these airlines i know many of them are not levered particularly and don't have a great deal of debt at this time. quite healthy. you look at american airlines stock price roughly 50% over the last 12 months and 38% the last three months >> david, generally speaking the balance sheets of the north american airlines are pretty healthy. they are in good shape the biggest concern out there is american airlines. that's why this stock has been hit harder than any other ones if you take a look at its debt to ebitda the gen

. >> has larry culp been able to turn thing around faster than you expected is that fair to say?> if you look at last year and define a a turnaround by the amount of cash they generated than expectations that was definitely better than expected year we are clear in the report that we took a good month and a half to deliberate on this. woe got the earnings results in late january the 10k a month later and it shows there are aspects of that $2 billion beat, if you will, in 2019 that are timing related so if you define a turnaround by generating $2 billion more in free cash ploe flow than expected, yes, he is if you look at the underlying trend on fundamentals, which is more defined by pined the p&l and earnings, you know, i would say things are stable. certainly not inflegting to the upside i think that's the point as to why we are not getting all, you know, bulled up here because that trend line still remains pretty stagnant in many areas. some areas down, some areas a little better. but certainly generating that better free cash was critical. and they did what they needed to do o

you mentioned the one with ge, i talked to larry culp via e-mail and the teams are working closely.be subdivided to suppliers and there's a parallel that prime minister boris johnson has asked for our support in the uk and we're working with mclaren and airbus and there's a product there coming to market. we're producing hundreds of thousands of these ventilators in the future. how long do you think it will take to get them out to hospitals? >> well, that's a great question. you know, the problem is that the lines that have been in place produce hundreds or thousands. we're talking about meeting hundreds of thousands just to put that in perspective, an f-150. one is built every 52 seconds. the ventilators we need to scale as these collective companies come together. we need to scale up something like that. so we're talking about early june where we don't think it's a problem, but between now and june it's about ramping up. >> and how exactly are you doing it, jim, since a lot of the ford plants have closed due to the coronavirus? how are you making this happen? ? that's a great ques

spending, and the ceo will forgo half of his salary >> and larry full salary for the rest of 2020 >> larry culpght >> they are not asking for a bailout. i think there's --that term gets tossed around boeing not asking for a bailout. a lot of companies are very, very sensitive to the idea that bailouts, what the american people hated in 2008, they're trying so hard to be sure that people understand that it's not -- they don't have demand, but they're still not asking for the government to give them a handout. the 50% furlough, u.s. maintenance, repair and overhaul employees for 90 days, makes sense. so few of the airlines are flying both boeing and ge are faced with what i addressed to the treasury secretary is this demand issue you cannot create demand it's similar to the great depression, there was supply, but no demand. they have to stimulate something so there's demand. we don't want -- remember, the great depression ended when world war ii started that's the demand. it hung around it hung around because there were no people who figured out what to do i know you have to go to the opening bel