(Reuters) -General Electric Co 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 the second half of the year.
Revenue rose to $18.28 billion from $16.81 billion in the quarter ended June 30.
GE reported 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.
(Reporting by Abhijith Ganapavaram in Bengaluru; Editing by Saumyadeb Chakrabarty)
