GE Aerospace's engine deliveries ""disappointing"" after ""constrained"" supply chain

GE Aerospace reported a strong second quarter, but the company has lamented the supply chain constraints that has impacted its new engine output. The company produces the CFM International LEAP engine in a 50/50 joint venture with Safran Aircraft Engines. ""While we've made progress and services this quarter, our new engine output was disappointing, down 20% sequentially,"" said GE Aerospace chairman and CEO H. Lawrence Culp. ""It's a clear challenge that we're facing head-on, accelerating the use of FLIGHT DECK in partnership with our suppliers as we work to solve the ongoing supply chain constraints."" FLIGHT DECK is the company's operating model, which it claims to be a systematic approach that focuses on driving safety, quality, delivery, and cost improvements. Culp added: ""Last quarter, we shared that the common denominator impacting growth across both services and new engines is constrained material supply, with 80% of material input shortages tied to 9 suppliers across 15 supplier sites. This remains our focus today, we've deployed more than 550 of our engineering and supply chain resources into the supply base to use FLIGHT DECK to work hand-in-hand with our suppliers to identify and resolve constraints."" Total orders for the second quarter totalled $11.2bn, up 18% over last year. Revenues were $9.1bn, up 4%. Its operating profit was at $1.9bn up 37%, while its GAAP profit was $1.4bn, down 4% from last year's second quarter. The aircraft engine supplier reached agreements at this year's Farnborough International Airshow for four widebody wins including with British Airways for GEnx engines to power six 787s, Japan Airlines for GEnx engines to power up to 20 787s, Turkish Airlines for eight GE90 engines to power four 777 freighters, and National Airlines for eight GE90 engines to power four 777 freighters. Following the results, the company adjusted its full year 2024 guidance. It rose its operating profit guidance to $6.5bn-$6.8bn, up from its April full year guidance of $6.2bn-$6.6bn. Additionally, its adjusted earnings per share guidance was risen from $3.80-$4.05 up to $3.95-$4.20.