GE’s turnaround rides a pandemic rebound1 min read . Updated: 27 Jul 2021, 05:54 PM IST
- Industrial giant raises 2021 cash flow goals on higher orders for jet engines, power and hospital equipment
General Electric Co. reported higher orders for its industrial machinery and raised its goal for cash flows this year, as the manufacturer continues to recover from pandemic-induced shocks to the global economy.
GE said its second-quarter revenue rose 9% to $18.3 billion from the year-ago period, when airlines grounded planes and canceled jet purchases as Covid-19-related lockdowns took hold.
The company reported another quarterly net loss on Tuesday, but said it had an adjusted profit that topped Wall Street’s expectations excluding one-time charges.
The company said it expects to generate free cash flow from its industrial operations between $3.5 billion and $5 billion for the full year, excluding discontinued operations and finance charges. On that basis, it had previously projected $2.5 billion to $4.5 billion in cash flow. GE left its 2021 earnings and revenue targets unchanged.
GE has been slashing costs in its aviation unit and streamlining its power business, while shrinking its debt load through asset sales including a deal to shed most of its Gecas jet leasing business earlier this year. That deal is expected to bring in $24 billion in cash and close by year-end.
GE shares rose about 3% in premarket trading. The shares were up about 14% in the past six months, closing Monday at $12.92, almost matching the percentage increase in the S&P 500 index over the same period.
This story has been published from a wire agency feed without modifications to the text
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