General Electric expects cash flow to turn positive in H2 of 2020: CEO

General Electric expects cash flow to turn positive in H2 of 2020: CEO

The GM logo is pictured at the General Motors Assembly Plant in Ramos Arizpe
The GM logo is pictured at the General Motors Assembly Plant in Ramos Arizpe, state of Coahuila, Mexico, on Oct 7, 2019. (Photo: REUTERS/Daniel Becerril)

NEW YORK: General Electric Co 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 (Sep 16).

Shares of the company, which have fallen about 45.4 per cent so far this year, were last trading up 10.7 per cent at US$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 US$2.1 billion from industrial operations in the second quarter as the coronavirus pandemic pummelled demand in its aviation business.

Analysts expect GE third-quarter cash outflow to be about US$656 million and cash inflow of about US$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. 

Source: Reuters

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