Investing
Ge Reaffirms 2022 Earnings Forecast Despite Challenges
Published by Wanda Rich
Posted on March 10, 2022
2 min readLast updated: February 8, 2026
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Global Banking & Finance Review®
Company
Published by Wanda Rich
Posted on March 10, 2022
2 min readLast updated: February 8, 2026
Add as preferred source on GoogleBy Rajesh Kumar Singh
GREENVILLE, S.C. (Reuters) -General Electric Co on Thursday reiterated its 2022 earnings forecast despite inflationary and supply-chain challenges.
Ahead of an in-person investor meeting, the Boston-based industrial conglomerate said it expects to post high-single-digit revenue growth this year on the back of a more than 20% increase in aviation revenue.
Adjusted profit for the year is projected to be in the range of $2.80 per share to $3.50 per share. It also expects to grow its profit margin by 150 basis points and to generate $5.5 billion to $6.5 billion in free cash flow.
The company expects to generate about $10 billion in adjusted operating profit and more than $7 billion in free cash flow in 2023.
“We’re running GE’s businesses better, creating value for shareholders today and tomorrow,” said Chief Executive Larry Culp. “Our stronger balance sheet positions us to deploy capital to invest in growth.”
The investor meeting comes weeks after the company warned that its profits would suffer in the first half of this year due to persistent supply-chain and inflationary pressures.
Almost two years into the coronavirus pandemic that has snarled supply chains across the world and driven up labor and raw material costs, companies of all sizes are scrambling not just to produce enough to meet current demand – but to also restock inventory shelves.
A run-up in global commodity prices following Russia’s invasion of Ukraine has worsened the situation.
Mounting concerns about supply-chain and inflation have also hurt GE’s shares, which are down 11% since mid-January.
The company has said it is raising prices and trying to keep a lid on costs. It is also trying to source alternative parts to help to deal with shortages.
GE, which last November said it would split into three public companies, reaffirmed the timeline for the spin-offs.
It plans to spin off its healthcare business into a separate publicly traded company next year. It would combine its power and renewable energy units, and spin off that operation in 2024. Following the split, it will become an aviation company.
(Reporting by Rajesh Kumar Singh. Editing by Jane Merriman)
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is typically measured by the Consumer Price Index (CPI).
Free cash flow is the cash generated by a company after accounting for capital expenditures. It is an important measure of financial performance and indicates how much cash is available for distribution to shareholders.
Adjusted profit refers to a company's earnings that have been modified to exclude certain one-time expenses or income, providing a clearer view of ongoing profitability.
Revenue growth is the increase in a company's sales over a specific period, often expressed as a percentage. It indicates the company's ability to expand its business and increase sales.
Profit margin is a financial metric that shows the percentage of revenue that exceeds the costs of goods sold (COGS). It is an indicator of a company's profitability.
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