Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

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.

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.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.