GE raises profit outlook even as economic risks mount
General Electric Co (GE.N) on Tuesday raised the low end of its full-year profit forecast after quarterly profit topped Wall Street estimates as strong air travel demand drove up sales of jet engine spare parts and services.
Rising interest rates, high inflation, mounting job losses and turmoil in the banking industry have increased the odds of an economic recession as soon as the second half of the year.
But CEO Larry Culp told Reuters that GE’s businesses have not seen any loss in momentum nor has its supply base faced credit pressure in “any meaningful way,” he said.
“We’re on watch,” Culp said in an interview. “But, thus far, we really haven’t seen anything from where we sit.”
GE’s shares, which have gained 53% this year, were little changed, up about 0.3% at $100.5 in morning trade.
A speedy recovery in aviation from the depths of the pandemic has lifted results of engine makers as supply chain disruptions have forced airlines to use older jets, boosting demand for aftermarket services.
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