'I think some of the uncertainty for us has been addressed,' General Electric CEO Larry Culp told CNBC.
Culp said GE has reached an agreement to be paid for both the engines it delivered in 2019 and those it plans to deliver this year. The agreement with Boeing was reached through GE's joint venture with French aerospace company Safran. The joint venture manufacturers the LEAP engines used on the 737 Max.."
In January, Culp forecast GE's first-quarter free cash flow at a negative $2 billion, attributed largely to complications with the 737 Max, which has been grounded worldwide for nearly a year after two deadly crashes.Culp said GE's agreement with Boeing "gives us an opportunity to catch up and be paid during the course of this year for the engines that we delivered."
"That will be a good thing at a time of some volatility to assure folks with respect to our cash position," he said.Boeing has told airlines and suppliers ittook over as chief executive in January"Boeing, I think, has been crystal clear that the regulators are going to shape the timing of the return to service," Culp said.
Shares of GE opened higher Wednesday but later fell slightly. Earlier, Culp addressed investors on a call Culp said the company's first-quarter cash flow would be reduced by $300 million to $500 million as a result of the coronavirus, but heGE hit a 52-week high of $13.26 per share on Feb. 12, but like the overall market, its stock has fallen in recent weeks as concerns about the coronavirus escalate.
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