|
|
|
|
||
GE says its wind, energy business will lose money this year Boston Business Journal GE says its wind, energy business will lose money this yearBy Lucia Maffei – Technology Reporter, Boston Business JournalGeneral Electric Co.'s energy businesses, the only division set to remain based in the Boston area after the planned spinoff, is projected to lose money this year as other parts of the business are forecasted to be in better shape. After spinning out Chicago's GE Healthcare earlier this month, the one-time multinational conglomerate (NYSE: GE) reported financial results on Tuesday, focused on its remaining segments. Those include power and renewable energy, on track to become a Cambridge-based independent company to be called GE Vernova in 2024, and aerospace, which will be headquartered in Cincinnati, Ohio. Based on 2023's outlook, GE Vernova is projected to finish the year with an operating loss between $200 million and $600 million, the company said Tuesday. By contrast, GE Aerospace is expected to deliver an operating profit of $5.3 billion to $5.7 billion. GE Vernova is expected to split off in early 2024 and be home to up to 200 employees in Cambridge’s Kendall Square. At that point, the entity historically known as GE will essentially become its aviation and aerospace business. GE CEO Larry Culp acknowledged in a Tuesday call with analysts that lower volumes and inflationary pressures continue to weigh on GE Vernova. The 20% decrease in headcount in its onshore wind division, announced last year, will deliver savings in 2023, Culp said Tuesday. "The Inflation Reduction Act is a real game-changer for us and the industry going forward," Culp said. "In fact, we began to see a rebound in demand this quarter, with renewables orders up 7%." In its latest quarter, GE Aerospace's revenue rose by 25% year-over-year to $7.62 billion, fueled by a rebound of air traffic and strong demand from customers such as Boeing Co. (NYSE: BA) and Airbus. Renewable energy dragged down the whole GE Vernova's quarterly performance with revenue coming at $3.41 billion, down 19% from the comparable quarter; Power, the other side of GE Vernova, had revenue up 8% at $5.03 billion. "Power delivered a solid performance this year and we are making real progress running a similar strategy at renewables," Culp said. |
return to message board, top of board |