(Sharecast News) - General Electric raised its full-year free cash flow forecast on Tuesday amid an expected boom in demand for its jet engines and spare parts thanks to a recovery in the aviation market that led to revenue growth throughout the second quarter.
The Massachusetts-based firm stated 2021 free cash flow was now expected to be $3.5bn to $5.0bn, up from prior forecasts for an FCF of $2.5bn-4.5bn.
General Electric also reported a free cash flow of $388.0m for the second quarter, a marked difference when compared to analysts' expectations for an outflow of $287.0m.
GE stated all of its industrial segments witnessed an improvement in profit margins during the quarter, with its aviation unit seeing the most significant uptick after having been decimated by the Covid-19 pandemic.
Revenues rose to $18.28bn in the quarter ended June 30, up from $16.81bn, while GE also reported an adjusted profit of $0.05 per share, slightly ahead of average analyst estimates for a profit of $0.03 per share.
As of 1355 BST, General Electric shares were up 2.94% in pre-market at $13.30 each.
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