General Electric expects cash flow to turn positive in second-half of 2020: CEO
(Reuters) - General Electric Co GE.N expects free cash flow to turn positive in the second half of 2020, Chief Executive Officer Larry Culp said at a Morgan Stanley 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.
Reporting by Rajesh Kumar Singh and Rachit Vats; Editing by Arun Koyyur and Nick Zieminski