GE lifts full-year free cash flow target on recovery hopes

General Electric lifted its free cash flow forecast for the year on Tuesday, as a recovery in the aviation market is expected to boost demand for the U.S. conglomerate’s jet engines and spare parts.

The Boston-based company said it expects 2021 free cash flow to be $3.5 billion to $5 billion, up from its prior forecast of $2.5 billion to $4.5 billion.

GE’s aviation unit, usually its biggest cash cow, has been hammered by the Covid-19 pandemic as airlines cut back on flights and grounded aircraft.

But the company said in June it planned for a recovery in the airline market in the second half of the year.

Revenue rose to $18.28 billion from $16.81 billion in the quarter ended June 30.

GE reported an adjusted profit of 5 cents per share for the quarter, compared with Refinitiv’s average analyst estimate of a profit of 3 cents per share.

This story is developing. Please check back for updates.

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