GE sees rise in industrial orders, lifting shares
Jul 28, 2021 - 07:08 AM
NEW YORK — Shares of General Electric rose early Tuesday as it scored increased orders in aviation and other key divisions while reporting a smaller loss compared with the year-ago period.
Aviation orders jumped 47 percent compared with the year-ago period when the travel industry was mired in the coronavirus downturn, as the company benefited from a series of new plane acquisition plans by major carriers.
GE also garnered increased orders in healthcare, renewable energy and power.
Revenues also rose across GE’s business during the quarter, lifting overall revenues nine percent to $18.3 billion, above analyst expectations, and enabling the company to boost its projections for 2021 industrial free cash flow.
“Momentum is building across our businesses, driven by healthcare and services overall, with aviation showing early signs of recovery,” said GE Chief Executive Lawrence Culp. “Based on our encouraging cash results, we are increasing our full-year free cash flow outlook.”
Since being named chief executive of GE in 2018, Culp has overseen asset sales and cost-cutting moves after a bumpy stretch for the US giant, which was bumped from the Dow index.
For the quarter, GE reported a loss of $1.2 billion, compared to a loss of $2.2 billion in the 2020 period. Factors behind the loss included interest payments and other costs connected to debt reduction.
Shares rose 3.5 percent to $13.37 in pre-market trading.