Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

GE warns of profit hit in first half from supply and labor issues

Stock Markets Feb 18, 2022 12:35PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: Hummer EV are seen on the production line as U.S. President Joe Biden tours the General Motors 'Factory ZERO' electric vehicle assembly plant, in Detroit, Michigan, U.S. November 17, 2021. REUTERS/Jonathan Ernst/File Photo 2/2

By Rajesh Kumar Singh

CHICAGO (Reuters) -General Electric Co warned on Friday that a supply chain logjam coupled with a labor crunch and inflation will pressure profits through the first half of the year.

The Boston-based industrial conglomerate, however, did not change its 2022 earnings forecast. In a regulatory filing, the company said the forecast, which was shared with investors last month, had factored in supply-chain and inflationary challenges.

GE expects adjusted profit in the range of $2.80 per share to $3.50 per share in 2022, compared with $1.71 per share last year. Full-year free cash flow is estimated at $5.5 billion to $6.5 billion, up from $2.6 billion in 2021.

The company's shares were down 5.6% at $92.94 in early afternoon trade.

Roughly two years into the coronavirus pandemic that has snarled supply chains across the globe and driven up costs for everything from labor to raw materials, companies of all sizes are scrambling not just to produce enough to feed current demand - but to also restock inventory shelves.

Last month, Tesla (NASDAQ:TSLA) said it would delay releasing new vehicles until next year because of supply chain breaks that the electric car maker said could last through this year.

Siemens Gamesa, the world's largest maker of offshore wind turbines, has issued three profit warnings in nine months, citing supply-chain problems.

GE said it was grappling with supply-chain issues across most of its businesses. It said raw material and labor shortages, along with soaring costs, were adversely impacting its healthcare, renewable energy and aviation units.

In response, the company said it is raising prices and trying to keep a lid on costs. It is trying to source alternative parts to help deal with shortages.

"While these improvements will take time to show in our results, we continue to see strong demand which will support our growth throughout the year," GE said.

GE will hold an investor conference on March 10.

GE warns of profit hit in first half from supply and labor issues
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email