The logo of General Electric Co. is seen on the company’s corporate headquarters building in Boston, Massachusetts, US July 23, 2019
Alvin Scott | reuters
general Electric Tuesday forecast 2023 adjusted profit lower than expected, as the industrial major faces continuing problems at its money-losing renewable energy business.
Shares of GE fell nearly 1% before the opening bell after the company forecast an operating loss for its energy business GE Vernova in 2023 of between $600 million and $200 million.
The renewable energy unit is posting poor results due to policy uncertainty following the expiry of renewable electricity generation tax credits in 2021, which has affected customer demand.
Parts shortages have also constrained overall production, and inflationary pressures have pushed up costs, hitting margins and forcing GE to raise prices.
GE, which completed the spin-off of its healthcare unit earlier this month, said it expects overall adjusted profit of $1.60 to $2.00 per share for the full year, compared with the average analyst estimate of $2.36 per share, according to Refinitiv. shares are expected.
Its aerospace business is set to continue boosting results due to strong demand for engines and after-market services. GE Aerospace’s operating profit for 2023 is expected to fall between $5.3 billion and $5.7 billion.
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