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GE Renewable Energy Posts $419 Million Loss
Essay by Eric Worrall
Midterm blues? While GE Aviation posted a $1.2 billion profit, GE Renewable Energy Posted a loss. GE blames inflation and the expiration of Federal tax credits.
GE CEO reports progress but ‘much is still uncertain’
Aviation business carried profits, but renewables is still volatile
July 26, 2022
Updated: July 26, 2022 12:26 p.m.
SCHENECTADY – General Electric Co. surprised Wall Street on Tuesday with higher-than-expected adjusted profit of $1.7 billion, up 81 percent from a year ago as CEO Larry Culp Jr. continues to cut costs and improve operations at the Boston-based industrial conglomerate.
Uncertainty remains for GE’s Capital Region workforce, which includes GE’s power plant and renewable energy businesses in Schenectady that GE is planning to spin off as a separate company known as GE Vernova.
GE’s aviation business carried the day, posting a profit of nearly $1.2 billion on $6.1 billion in revenue. Profit margin was 18.7 percent, and orders were up 26 percent as the commercial airline industry rebounds from the COVID-19 pandemic.
GE’s renewable energy business, which is currently based in Paris but will be merged with GE Power before its planned 2024 spin-off, lost $419 million during the second quarter, forcing GE to cut back on its expectations for the unit for the rest of the year. Orders were down 3 percent.
…Read more: https://www.timesunion.com/business/article/Political-and-business-climate-hurting-GE-s-17329251.php
Maybe GE Renewable Energy will turn their business around. But potential downsizing and a shrinking order book doesn’t exactly scream raging business success.