General Electric expects to burn less cash in Q2 than a year ago

FILE PHOTO: The General Electric logo is pictured on working helmets during a visit at the General Electric offshore wind turbine plant in Montoir-de-Bretagne

CHICAGO (Reuters) – General Electric Co expects to burn less cash in the current quarter than it did a year earlier, continuing a year-on-year improvement in cash generation, Chief Financial Officer Carolina Dybeck Happe said on Thursday.

The industrial conglomerate expects to post a similar level of improvement in cash flow this quarter as it did a quarter ago, Dybeck Happe said at a Wolfe Research Transportation and Industrials Conference.

In the quarter through March, GE reported a $1.7 billion of improvement in cash flow from a year ago.

Analysts surveyed by Refinitiv, on average, expect the Boston-based company to report a cash outflow of $746 million in the current quarter, smaller than an outflow of $2.1 billion a year ago.

GE has forecast to generate $2.5 billion to $4.5 billion in free cash flow this year.

The company’s shares closed up 7.1% at $14.35.

(Reporting by Rajesh Kumar Singh; Editing by Leslie Adler and David Gregorio)