Sagging sales from aviation business burn General Electric Q2 results

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NEW YORK: General Electric Co (GE) reported a bigger-than-expected loss today, due in part to sagging sales from its aviation business in the wake of ...

General Electric Co reported a bigger-than-expected loss today, due in part to sagging sales from its aviation business in the wake of the coronavirus outbreak.

However, GE saw less cash outflow than estimated in the second quarter. The Boston-based industrial conglomerate reported cash outflow of US$2.1 billion from industrial operations, a tad lower than a quarter ago and considerably below its own estimate of between US$3.5 billion and US$4.5 billion for the quarter.

However, the company is taking heart from an improvement in flight departures globally, which it expects would boost the unit's services business. The company also took a one-time accounting charge of US$608 million in light of weakened expectations for aviation and customer credit risk. Aviation had been one of GE's stronger division prior to the coronavirus outbreak.

"Still, based on what we see today and the actions we've taken, sequential improvement in earnings and cash in the second half of the year is achievable."

 

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