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

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© 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

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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 challenges are affecting its units including healthcare, renewable energy and aviation, the company said in a regulatory filing.

But the Boston-based industrial conglomerate said its 2022 earnings 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 3.9% at $94.57 in late-morning trade.

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