- General Electric Co (NYSE:GE) issued an investor newsletter, mentioning continued supply chain pressure across most of its businesses as material and labor availability and inflation affect Healthcare, Renewable Energy, and Aviation.
- GE expects these challenges to persist at least through the first half of the year.
- GE said it had included such pressures in its annual guidance. As announced earlier, GE's outlook calls for organic revenues to grow in the high-single-digit range, adjusted organic profit margin to expand by 150+ basis points, Adjusted EPS of $2.80 - $3.50, and Free cash flow of $5.5 billion - $6.5 billion.
- However, the magnitude of these challenges likely present pressure to overall growth, profit, and FCF through Q1 and 1H, beyond typically expected seasonality.
- Related: GE Q4 Revenue Misses Street View; Expects Revenue Growth In FY22
- GE said it is focused on mitigating the pressures through pricing and cost actions and with lean mindset. In Aviation, lean is improving first-time yields.
- GE expects supply chain headwinds may continue to partially mask the significant progress across its businesses.
- Also Read: Analysts Cut General Electric Price Target Post Q4 Results
- Price Action: GE shares are trading lower by 4.68% at $93.85 on the last check Friday.
