General Electric cut cash flow estimates by $1 billion as the U.S. industrial group expects little relief from supply chain distortions and cost pressures that hit first-quarter results.
The American company’s stock is down 2.3% pre-conference.
“Working capital will be pressured as GE protects customers from the impact of supply chain challenges, as well as renewables-related orders,” the company said.
The squeeze will generate about $1 billion in cash flow “in the future,” GE said.
The company previously said it expects 2022 cash flow to be between $5.5 billion and $6.5 billion.
The US company faces pressure from raw material shortages and rising transportation costs across its operations, although price increases and cost controls have helped offset some of that.
Source: Capital
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