GE Hit by Steep Decline in Jet-Engine Business

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General Electric posted a nearly $2 billion quarterly loss as revenue tumbled 24%

By Thomas Gryta Close Thomas Gryta July 29, 2020 6:52 am ET General Electric Co. GE 2.68% posted a nearly $2 billion quarterly loss as revenue tumbled 24%, hurt by a steep decline in a jet-engine business that has been hobbled by the coronavirus pandemic.

However, GE said it burned through less cash in the June quarter than it had previously warned. The company reported adjusted negative cash flow from industrial operations of $2.1 billion, compared with its projection of negative $3.5 billion to $4.5 billion in May. Analysts were expecting negative cash flow of $3.29 billion, according to FactSet.

GE also said it expects a return to positive cash flow in 2021. The measure is closely watched by investors after troubles in generating cash forced the company to slash its dividend and sell off business units.

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