The General Electric (GE) conglomerate warned on Tuesday that inflation, difficulties in its supply chain, the war in Ukraine and disruptions linked to Covid were affecting its operations.
“We maintain the guidance range we shared in January, but as we continue to face inflation and other sources of pressure, we are currently trending towards the lower end of the range,” said company CEO Larry Culp in a statement.
GE said in a stock market filing that it faces “inflationary pressures in its supply chain, as well as delays in the supply of key materials needed for (its) products”.
“Geopolitical uncertainties related to the ongoing conflict between Russia and Ukraine, as well as the recent impacts of Covid-19 in China, present additional challenges,” he added.
GE’s stock lost more than 5% in early trading on Wall Street.
In the first quarter, the company’s overall turnover stagnated at 17 billion dollars (16.3 billion francs).
Revenues from aviation, supported by the resumption of air traffic after an air pocket at the start of the pandemic, increased by 12% to settle at 5.6 billion dollars.
Sales stabilized in healthcare (+1% to $4.4 billion).
Revenue from the renewable energy sector, on the other hand, fell 12% to $2.9 billion, while orders for this entity fell 21%, due in particular to lower demand for onshore wind turbines in the United States.
Sales also fell in the gas turbine sector (-11% to $3.5 billion).
The group’s net loss narrowed to $1.1 billion.
GE notably had to record a charge, already announced, of 800 million dollars linked to the probable sale to EDF of part of its nuclear activities following the signing in February of a prior agreement between the two parties. The operation should be finalized in the first half of 2023.
The conglomerate also recorded a $200 million impairment charge related to its operations in Russia and Ukraine.
The group, which announced in November its next split into three separate entities, specializing in aeronautics, health and energy (renewable energies and turbines), also indicated that this operation was “on the right track”.
/ATS