GE expects full-year earnings at lower end of forecast as supply chain disruptions take a toll

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General Electric, however, reported higher-than-expected adjusted profit of 24 cents a share in the quarter through March

on Tuesday pegged its full-year earnings at the lower end of its previous forecast, as persistent supply chain disruptions and rising freight and raw material costs take a toll.

In January, the company projected adjusted profit for the year to be in the range of $2.80 per share to $3.50 per share. It also expects to grow its profit margin by 150 basis points and to generate $5.5-billion to $6.5-billion in free cash flow. “We’re holding the outlook range we shared in January, but as we continue to work through inflation and other evolving pressures, we’re currently trending toward the low end of the range.” GE Chief Executive Officer Larry Culp said.GE said revenue growth at its health care unit was hit by COVID-19 related lockdowns in China and lower volumes in Russia and Ukraine. The company added that its aviation segment was navigating through the lockdowns but demand is expected to remain strong.

The Boston-based industrial conglomerate, however, reported higher-than-expected adjusted profit of 24 cents a share in the quarter through March. Revenue for the quarter came in at $17.04-billion, topping Wall Street’s estimates of $16.89-billion.Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter.

 

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