General Electric Co on Wednesday reiterated its 2021 forecast and announced a deal to sell its aircraft-leasing business to Ireland’s AerCap Holdings NV as part of efforts to pare its debt.
The Boston-based company said it expects to generate $2.5 billion to $4.5 billion in free cash flow this year, with an adjusted earnings of $0.15 to $0.25 per share, reaffirming the guidance it provided in January.
All industrial businesses except non-gas power are projected to book higher cash flow in 2021. Free-cash flow is closely watched by investors as a sign of the health of GE’s operations and ability to pay down debt.
“We are on a positive trajectory in 2021 as momentum builds across our businesses and we transform to a more focused, simpler, and stronger industrial company,” said Chief Executive Larry Culp.
GE shares are up 31% this year, compared with a 3% advance for the benchmark S&P 500, and have gained about 160% since their May low. They were up 2.3% at $14.32 in pre-market trade.