Global supply shortages and continued challenges related to the COVID-19 pandemic are having a negative impact on GE Healthcare's financial performance in its third quarter.
In an investor update posted on September 8, Steve Winoker, GE's vice president of investor relations, said that worldwide material and labor availability "remain pressured" in several areas, particularly in semiconductors, resins, and logistics. These issues are expected to continue throughout the second half of the year and negatively affect revenue and margin growth, according to Winoker.
Nonetheless, Winoker said that GE remains encouraged by the performance and long-term prospects of its Healthcare business.
"Although we expect a challenging environment through the first half of 2022, we are working with our partners, suppliers, and logistics channels to alleviate the impact and help mitigate output and cost challenges," Winoker wrote. "We're committed to our full-year guidance of low-to-mid single-digit revenue growth in Healthcare, with greater than 100 bps of organic margin expansion."
