By General Electric’s chief financial officer said at an investor conference that the company is seeing continued supply-chain pressure, putting the conglomerate under pressure in preopen trade on Friday.
Speaking at a Morgan Stanley investor conference, CFO Carolina Happe said those persistent pressures are resulting in deliveries moved later in the quarter.
That, she says, translates into free cash flow in line, or slightly better, than the second quarter. “I would say the combination of keeping the top line and bottom line, but delivering it later in the quarter means that we see some pressure on the cash flow,” she said, according to a transcript from S&P Global Market Intelligence.
Analysts polled by FactSet had expected free cash flow to climb to $891 million from the second quarter’s $162 million.
Some renewable orders are “also moving to the right,” she said. The fourth quarter, Happe says, will be a big quarter, with strong growth both from aerospace and healthcare on a bit of a catchup, and a big transactional services quarter for power.
GE
GE,
-1.60%
shares fell 4% in premarket trade.
GE shares have dropped 27% this year, underperforming the 18% decline for the S&P 500
SPX,
-1.13%.
