GE adjusted profit falls 19% on supply snarls, renewable unit weakness By Reuters

© Reuters. FILE PHOTO: A woman stands in front of a General Electric (GE) sign during World Artificial Intelligence Conference, following the coronavirus disease (COVID-19) outbreak, in Shanghai, China, September 1, 2022. REUTERS/Aly Song

(Reuters) – General Electric (NYSE:) Co reported a 19% drop in adjusted quarterly profit on Tuesday, as the U.S. industrial conglomerate struggles with company-wide supply snarls, inflationary pressures and weakness in its renewable energy business.

GE, which is in the process of breaking up into three companies, said adjusted profit fell to $1.06 billion for the quarter through September.

The company, 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.

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