CLAIM #26225 · GE (GE) · 2024Q2 earnings call · Jul 23, 2024 · due Dec 31, 2024
“And then it won't be as much of a headwind as it was last year in the second half of the year.”
Rahul Ghai · CFO
In context
“und availability to the extent that we've got some folks that are performing. We don't want to, if you will, penalize them as we think about all that we're going to need from them, not only over the next six months, but frankly, over the coming years. Rahul Ghai: And Gautam, you'll see that in our Q. I think you're spot on. We've seen significant inventory growth here in the first half of the year, close to $1.2 billion of inventory growth, which is, call it, $0.5 billion higher than what we grew in the first half of last year. So significant headwind here. Now with the improvement in output that we are projecting here for the second half of the year, we do think that while inventory will grow in the second half of the year, obviously, the pace of growth will slow down significantly here. And then it won't be as much of a headwind as it was last year in the second half of the year. So it has been a challenge. But again, as Larry said, that is something we've been trying to manage and manage it as appropriately as we can. But the good news is, despite the $1 billion pool of inventory growth in the first half of the year, we still had 120% conversion. So strong cash growth. Cash was up about $1 billion year-over-year in the first half. So we kind of absorbed it, we managed it and try to do better in the second half. Operator: Our next question comes from the line of Scott Deuschle with Deutsche Bank. Scott Deuschle: Hey. Good afternoon. Rahul Ghai: Good afternoon. Lawrence Culp: Hey, Scott. Scott Deuschle: Hey, Larry. Not to beat a dead horse, but just following up on Myles' earlier question. I was wondering if you could offer some more detail on those, I guess, six o”
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SEC filings for GE ↗ · Claim quote is verbatim from the 2024Q2 earnings call.