(Reuters) – General Electric on Tuesday raised its 2023 adjusted profit forecast for the third time this year, on strong demand for parts and services for aircraft engines, as well as improving performance in its business in the field of renewable energies.
GE stock is up 6% in pre-market trading on Wall Street.
The Boston-based industrial conglomerate now forecasts adjusted earnings per share for 2023 of $2.55 to $2.65 (2.40-2.49 euros), compared to $2.10 to $2.30 previously announced.
Free cash flow for the year is expected to be between $4.7 billion and $5.1 billion, up from the $4.1 billion to $4.6 billion forecast in July.
“At GE Aerospace, we continue to experience rapid growth driven by robust demand and strong execution, primarily in commercial engines and services,” Chief Executive Larry Culp said in a statement.
A faster-than-expected recovery in the aviation sector from the pandemic has boosted engine manufacturers’ results since the start of the year. Indeed, the shortage of commercial aircraft has forced airlines to use their old aircraft for longer, spurring demand for lucrative services in the secondary market.
(Reporting Rajesh Kumar Singh in Chicago and Abhijith Ganapavaram in Bangalore; Gaëlle Sheehan, editing by Kate Entringer)
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