GE Aviation reduces cash flow as MAX grounding continues

victoria@aviationnews-online.com
By victoria@aviationnews-online.com October 31, 2019 09:24

GE Aviation reduces cash flow as MAX grounding continues

GE Aviation has warned that the Boeing 737 MAX grounding will reduce its cash flow by $1.4 billion in 2019, provided the aircraft remains grounded all year.

The statement was provided by GE Chief Executive Larry Culp during the company’s Q3 2019 results.

The company, which along with French partner Safran SA make engines for the jet, said organic orders were down 1% year over year with services up 3% and equipment down 4%. In the year to date, organic orders are up 3%, primarily driven by services up 7%.

During the results, GE’s backlog ended the quarter at $386 billion, up 14% year-over-year, with equipment of $80 billion, up 4%, and services of $306 billion, up 17%.

Commenting on the results, Culp said: “This quarter, during strategy reviews with each of our businesses, we identified and prioritised operating improvements and growth investments that will drive sustainable results.

“We have more work to do, and we will continue to take actions to improve our financial position and strengthen our businesses as we prepare for 2020 and beyond. I remain confident that we will unlock value for GE’s stakeholders as our transformation accelerates.”

victoria@aviationnews-online.com
By victoria@aviationnews-online.com October 31, 2019 09:24