General Electric expects cash flow to turn positive in second-half of 2020: CEO
Reuters
Published Sep 16, 2020 01:27PM ET
Updated Sep 16, 2020 02:10PM ET
(Reuters) - General Electric Co (N:GE) expects free cash flow to turn positive in the second half of 2020, Chief Executive Officer Larry Culp said at a Morgan Stanley (NYSE:MS) Laguna Conference on Wednesday.
Shares of the company, which have fallen about 45.4% so far this year, were last trading up 10.7% at $6.75 in afternoon trade.
"We will deliver positive cash flow in the back half," Culp said.
The Boston-based industrial conglomerate reported cash outflow of $2.1 billion from industrial operations in the second quarter as the coronavirus pandemic pummeled demand in its aviation business.
Analysts expect GE third-quarter cash outflow to be about $656 million and cash inflow of about $1.17 billion in the fourth quarter, according to Refinitiv data.
Culp said the company's performance in the second half of the year will set the stage for a positive cash flow in 2021 as well.
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Written By: Reuters
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