General Electric’s supply chain face struggles due to shortages

Supply-chain and macroeconomic pressures caused 5 percentage points from GE's revenue

General Electric Co. is struggling to keep up with the supply-chain bottlenecks which have made it tougher to deliver products to the customers on time. The announcement was made by its Chief Financial Officer Carolina Dybeck Happe. The Boston-based industrial conglomerate has been facing challenges in its businesses in satisfying customer demand due to shortages of raw materials, labor, and parts. In the second quarter, supply-chain and macroeconomic pressures caused 5 percentage points from GE's revenue. Dybeck Happe told a Morgan Stanley conference those factors continue to impact the output of its jet engines and healthcare products. "Supply chain continues to be tough and continues to impair our ability to deliver to our customers," she said.

As a result, she said the company's cash flow is expected to be under pressure. She expects GE's free cash flow in the quarter through September to be either in line or slightly better than the June quarter. The company reported $162 million in free cash flow in the second quarter. Dybeck Happe told a Morgan Stanley conference those factors continue to impact the output of its jet engines and healthcare products.