GE CEO sees ‘strong’ revenue growth despite challenges

FILE PHOTO: A logo sits over the entrance to a General Electric Co. facility in Medford
FILE PHOTO: A painted logo sits over the entrance to a General Electric Co. facility in Medford, Massachusetts July 17, 2009. REUTERS/Brian Snyder/File Photo

February 23, 2022

CHICAGO (Reuters) -General Electric Co expects to have “strong” revenue growth this year despite inflationary and supply-chain challenges, Chief Executive Larry Culp said on Wednesday.

The comments came days after the industrial conglomerate warned that supply and labor shortages, along with inflation, would pressure its profits through the first half of the year.

“This is a tough operating environment,” Culp said at the Citi Industrial conference.

Last week, the Boston-based industrial conglomerate said it was grappling with supply-chain issues across most of its businesses. It said raw material and labor shortages, along with soaring costs, were adversely affecting its healthcare, renewable energy and aviation units.

Culp said the company is adjusting its prices and trying to keep a lid on costs. It is also trying to source alternative parts to help deal with shortages, he added.

He said he expects the moves to start showing results in the second half of the year.

GE, which reported a drop in revenue in the last quarter, expects to return to revenue growth this year.

(Reporting by Rajesh Kumar Singh; editing by Jonathan Oatis)

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