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GE Stock Falls. Supply-Chain Issues Aren't Fading.GE Stock Falls. Supply-Chain Issues Aren't Fading.Barron's (Online); New York General Electric shares were falling Friday after the company's chief financial officer said supply-chain issues were still impacting deliveries. The ongoing challenges, particularly affecting GE's aerospace and healthcare businesses, are set to impact the company's third-quarter performance, Carolina Dybeck Happe said Thursday. "Supply chain continues to be tough and continues to impair our ability to deliver to our customers," Dybeck Happe said at Morgan Stanley's Laguna conference on Thursday. "What we are seeing with the continued supply chain pressures, we are continuing to see deliveries move later in the quarter," she said, noting that the company expects free cash flow in the third quarter to be in line with or slightly better than the second quarter's $162 million. GE had expected to deliver more aerospace products and jet engines but they have been pushed later, "which has a negative impact on profit," she said. In July, GE said it expected to generate $4.5 billion to $5.5 billion in free cash flow for the full year. That forecast is about $1 billion lower than an earlier outlook due to working capital pressures "as GE protects customers from the impact of supply chain challenges." The stock was down 3.9% to $66.22 in premarket trading Friday. Shares have fallen 27% this year as of Thursday's close. |
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