General Electric on Wednesday reported a smaller quarterly loss due to falling revenues and a continuing recession in aviation, but said cash flow would be positive in 2021 following cost reduction measures
Shares of the industrial giant advanced in pre-market trading despite some negative points in the earnings report, including lower third-quarter orders in its four business segments
GE chief executive Larry Culp said the company increased profit margins in all segments except aviation when currency effects were removed
« We are managing in a still challenging environment with better operational execution across our business, and we are on the right track with our cost and cash actions, » Culp said
GE reported a loss of $ 1.2 billion in the quarter, down from a loss of $ 9 the year before, 5 billion inflated by a one-time non-cash loss
Demand for GE products remains under pressure in a global economy slowed by the coronavirus epidemic
GE’s aviation segment has been hit particularly hard due to a slowdown in air travel that is not expected to fully recover until there is a widely available vaccine against the virus
But Culp has taken steps to improve GE’s cash flow and business performance, including revamping the electrical business, cutting costs by $ 2 billion, and announcing the cut of 13,000 jobs in the spring.
During the quarter, GE announced that it began launching the world’s largest offshore wind farm, achieved federal certification for a new fuel-efficient aircraft engine, and launched new health technology products
General Electric, NYSE: GE, earnings, stocks
World news – CA – GE announces lower loss, higher stocks
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