GE Renewables Articles $419 Million Loss – Did It Grow With That?

Essay by Eric Worrall

Midterm blues? While GE Aviation made a profit of $1.2 billion, GE Renewable Energy lost. GE Blamed Inflation and Expiration of Federal Tax Credits.

GE CEO reports progress but ‘still a lot of uncertainty’

Aviation business is profitable, but renewable energy is still volatile

Larry Rulison
July 26, 2022
Update: July 26, 2022 12:26 pm

SCHENECTADY – General Electric Co. surprised Wall Street on Tuesday with a higher-than-expected adjusted profit of $1.7 billion, up 81% from a year ago when CEO Larry Culp Jr. continues to cut costs and improve operations at the Boston-based industrial group.

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Uncertainty remains for the workforce in GE’s Capital Region, which includes GE’s power plant and renewable energy businesses in Schenectady. GE is planning to create a separate company called GE Vernova.

GE’s airline business was profitable for the day, posting a profit of nearly $1.2 billion on revenue of $6.1 billion. Profit margin was 18.7% and orders increased by 26% as the commercial aviation industry recovered from the COVID-19 pandemic.

GE’s renewable energy business, which is now based in Paris but will be merged with GE Power before it is scheduled to launch in 2024, lost $419 million in the second quarter, forcing GE to cut lower its expectations for the unit for the rest of the year. Orders fell 3 percent.

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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 shrinking order books don’t exactly make for business success.