General Electric (GE -1.2%) anticipates "strong" revenue growth this year but rising raw material and logistics costs will exceed its ability to increase prices to customers during H1, CEO Larry Culp told a Citigroup investor conference.
Culp said supply chain and inflation pressures are present across GE's manufacturing businesses, and will pressure the company's profit outlook through the first half before easing in H2.
The company is adjusting prices and trying to tamp down costs, as well as trying to source alternative parts to help deal with shortages, which should start showing results in H2, Culp said.
The CEO also said GE's onshore wind business likely will see slow orders for at least next two quarters due to the expiration of U.S. tax credit before volumes improve in H2.
Culp comments come on top of last week's warning that supply chain challenges will continue to pressure growth, profit and free cash flow at least through H1.