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General Electric Shares Extend Gains After CEO Culp Gives Bullish Update On Industrial Cash Flow


General Electric ( GE ) - Get Report shares extended gains Thursday, following on from last night's 10% surge triggered by a bullish outlook on industrial group cash flow from CEO Larry Culp.


Culp told investors attending the virtual event that GE "will deliver positive cash flow in the back half", sending shares sharply higher even as broader markets sold-off following the Federal Reserve's interest rate decision and statement.


General Electric shares were marked 2.1% higher in pre-market trading Thursday to indicate an opening bell price of $6.86 each, a move that would still leave the stock with a year-to-date decline of around 38.5%.


In late July, when GE published a wider-than-expected second quarter loss of $2.2 billion, Culp noted "faster progress on elements within our control, including our targeted cost and cash preservation actions.'


GE's second quarter revenues fell 38.5% from last year to $17.7 billion, a figure that topped analysts' forecast by around $700 million for the three months ending in June.


Revenues from GE Power, one of the group's biggest divisions, remained reasonably solid, down 11.1% to $4.16 billion, while Aviation revenues fell 44% to $4.4 billion as global aircraft demand collapsed during coroanvirus travel restrictions and Boeing's BA 737 MAX remained grounded under FAA orders.






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