Salem Radio Network News Friday, August 19, 2022

Business

GE posts higher earnings on recovery in aviation industry

(Reuters) -General Electric Co on Tuesday surprised Wall Street with higher quarterly profit and positive cash flow as recovery in the aviation industry drove up its jet engine business, sending its shares higher in pre-market trade.

The Boston-based industrial conglomerate reiterated that its full-year results were on track to come in at the low end of its forecast as the company continued to wrestle with supply-chain and inflationary pressures. However, it trimmed the full-year free cash flow forecast by about $1 billion.

“Working capital will be pressured as GE protects customers from the impact of supply chain challenges, as well as Renewable Energy-related orders,” the company said.

The pressure will see about $1 billion of free cash flow pushed “into the future”, GE added.

In January, it projected adjusted profit in 2022 to be in the range of $2.80 to $3.50 per share and expected to generate $5.5 billion to $6.5 billion in free cash flow.

GE’s shares were up 4.8% at $71.63 in pre-market hours.

Adjusted profit for the quarter through June came in at 78 cents a share, significantly higher than analysts’ expectations for a profit of 38 cents a share, according to Refinitiv. The company reported $162 million in free cash flow in the second quarter.

(Reporting by Rajesh Kumar Singh in Chicago and Abhijith Ganapavaram in Bengaluru; Editing by Sriraj Kalluvila, Kirsten Donovan)

Previous
Next

Editorial Cartoons

View More »

Gary Varvel
Mon, Aug 8, 2022

X CLOSE