GE Sees Long Recovery Ahead After Progress on Costs, Cash
- Industrials posted double-digit order drops in second quarter
- Stake in Baker Hughes to be sold over next three years
General Electric Co. predicted slow gains in operations this year and next after the coronavirus pandemic battered results in the second quarter.
The jet-engine division has tracked “early signs of improvement” in flight departures on the path to a lengthy recovery, GE said in a presentation as it reported results. The company burned through $2.1 billion in industrial free cash in the second quarter, less than the $3.3 billion drain expected by analysts.
“It’s really about sequential improvement from here,” Chief Executive Officer Larry Culp said on a call with analysts. “The environment remains challenging. But with respect to those things that are within our control, we think health care is well-positioned to lead, the turnarounds in power and renewables continue, and we’re expecting a multiyear recovery in aviation.”