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General Electric expects cash flow to turn positive in second-half of 2020: CEO

Published 09/16/2020, 01:27 PM
Updated 09/16/2020, 02:10 PM
© Reuters. The GM logo is pictured at the General Motors Assembly Plant in Ramos Arizpe

(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.

© Reuters. FILE PHOTO: The logo of General Electric is pictured at the 26th World Gas Conference in Paris

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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