GE CEO says delivering products to customers is ‘number one’ challenge

FILE PHOTO: FILE PHOTO: General Electric Co. Chief Executive Officer Larry Culp at the company’s annual meeting in Tarrytown

CHICAGO (Reuters) – General Electric Co Chief Executive Larry Culp said supply-chain bottlenecks have made delivering products to customers the “number one” challenge for the company.

“Fortunately for us, it is not demand,” Culp told the Bernstein Conference. “We’ve got plenty of demand.”

In April, the Boston-based industrial conglomerate said it was trending toward the lower end of its full-year earnings forecast, citing worsening supply chain and inflationary pressures.

To mitigate the impact, the company has raised prices for its products and is invoking price escalation clauses in its service contracts. It is also trying to find alternative sources for parts and improve productivity to reduce cost.

Culp said all of the company’s businesses are grappling with a “host of challenges” in satisfying customer demand.

(Reporting by Rajesh Kumar Singh; Editing by Chizu Nomiyama)