Shares of industrial manufacturer General Electric (GE) dropped 4% after the Boston-based
company warned that ongoing supply chain issues are dragging on its earnings.
General Electric said that continued difficulties in obtaining parts from suppliers are hurting its
ability to deliver products such as jet engines.
Those problems are pushing planned shipments further out on the company’s delivery timeline,
which is likely to have a negative impact on the company’s profits, GE said.
The supply chain issues are also putting pressure on GE’s cash flow, which the company
expects to be in line with or better than the roughly $162 million U.S. generated in this year’s
second quarter.
General Electric added that it is facing other challenges such as squeezed profit margins at its
healthcare division and a decline in demand for its wind turbines. The company said it plans to
cut costs going forward.
Shares of General Electric fell 3.9% to $66.39 U.S. on news of the supply chain issues. The
stock is down 31% so far this year.
