General Electric (GE) reported a disappointing fourth-quarter earnings report as the electricity giant pointed to continuing supply chain woes to explain its dip in revenue, the company reported.
GE’s fourth-quarter revenue fell 3%, with $3.8 billion of free cash flow coming from its industrial operations, bringing the company’s full-year free cash flow to $5.1 billion, according to the company’s earnings release. GE previously projected improved sales in 2022, estimating that its cash flow would reach $6.5 billion.
General Electric said fourth-quarter revenue was weighed down by supply-chain difficulties and projected a return to sales growth in 2023 as its aviation business begins to recover https://t.co/9g5whrlqFp
— The Wall Street Journal (@WSJ) January 25, 2022
GE plans to split it into three separate companies over the next two years to combat supply chain problems and the COVID-19 pandemic’s impact on its aviation business, the WSJ reported.(RELATED: Biden Touts That ‘89%’ Of Grocery Store Shelves Are ‘Full’)
“We’re seeing real momentum and opportunities for sustainable profitable growth from near-term improvements in GE’s businesses, especially as Aviation recovers and our end markets strengthen,” GE chairman and chief executive Larry Culp told the WSJ.
GE’s share price was up over 2.5% as of the start of 2022, closing Monday at $96.91, according to Bloomberg. The company’s stock price surged to $111.29 in November 2021 after the electricity giant announced its plans to split into three separate divisions.
GE will begin its separation early in 2023, beginning with its healthcare division, the WSJ reported. The powers and renewables will form their own division in 2024.
“By creating three industry-leading, global public companies, each can benefit from greater focus, tailored capital allocation, and strategic flexibility to drive long-term growth and value for customers, investors, and employees,” Culp previously said in a press release. “We are putting our technology expertise, leadership, and global reach to work to better serve our customers.”
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