GE drops 4.6% in extended trading after CFO points to supply-chain pressures on cash flow

New General Electric logo installed on former Alstom building

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General Electric (NYSE:GE) fell 4.6% in extended trading on Thursday as CFO Carolina Dybeck Happe said ongoing supply-chain issues are pressuring the company's cash flow.

"With the continued supply chain pressures, we are continuing to deliver later in the quarter," she said at a Morgan Stanley investor conference in Dana Point, California. "So, we would expect free cash flow in the third quarter to be in line with the second quarter or slightly better than that."

GE is looking to the first week of 2023 to complete the spinoff of its healthcare unit, the firm said this week. The company expects to retain a 19.9% in GE Healthcare, which has been performing well recently because of strong demand for medical equipment and services.

GE has fallen 28% this year, compared with a 19% slump for the S&P 500 Stock Index (SP500).

Seeking Alpha contributor Fredrik Arnold has a Buy rating on General Electric (GE) on its potential dividend. Columnist Pinxter Analytics rates General Electric (GE) as a Strong Buy on aerospace growth.

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