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The
U.S. industrial conglomerate cut its full-year adjusted profit
forecast to $2.40 to $2.80 per share, compared with an earlier
expectation of $2.80 to $3.50, primarily driven by warranty
costs and reserves at its renewable unit.
Shares of GE fell 7.3% before the bell.
The company, which is in the process of breaking up into three
companies, said adjusted profit fell to $1.06 billion for the
quarter through September from $1.32 billion, a year earlier.
GE, like other U.S. manufacturing majors, has been hit by raw
material shortages and rising freight costs across its
operations, though price hikes and cost controls have helped
offset some of that pain.
Last month, Chief Financial Officer Carolina Dybeck Happe said
the company was still grappling with supply-chain bottlenecks,
which have made it tougher to deliver products to customers on
time.
It has also been struggling with poor results in its renewable
energy business due to policy uncertainty following the expiry
of renewable electricity production tax credits last year, which
has hit customer demand.
Reuters reported earlier this month that GE is laying off
workers at its renewable business' onshore wind unit.
Free cash flow, a closely watched metric, fell about 11% to
$1.19 billion in the third quarter.
(Reporting by Abhijith Ganapavaram in Bengaluru; Editing by
Saumyadeb Chakrabarty and Sriraj Kalluvila)
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