GE’s 2023 Profit Forecast Impacted by Renewable Energy Division

GE's 2023 profit forecast weighed down by renewable business

Jan 24 (Reuters) – General Electric Co (GE.N) projected a lower-than-expected 2023 adjusted profit on Tuesday, as the industrial giant grapples with persistent difficulties at its money-losing renewable energy business. Shares in GE were down 2% at $78.29 in premarket trading after the company forecast an operating loss between $200 million and $600 million for its energy business GE Vernova in 2023. The firm’s renewable energy unit has been facing issues due to inflation and supply chain pressures. It reported a loss of $2.2 billion in 2022. While GE is aiming to make its renewable business profitable in the coming year, Chief Executive Larry Culp has described its onshore wind unit as “the battleground” for the company. The company is reducing global headcount at the onshore wind unit by about 20% as part of a plan to restructure and resize the business. GE, which completed the spin-off of its healthcare unit earlier this month, has plans to spin off its energy businesses, including renewables, into a separate company next year. GE said it expects full-year adjusted earnings in the range of $1.60 to $2.00 per share this year, compared with analysts’ average forecast of $2.36 per share, according to Refinitiv. Its aerospace business is set to continue to boost results due to strong demand for engines and after market services. GE Aerospace’s operating profit is expected to come in between $5.3 billion and $5.7 billion for 2023. GE’s adjusted profit for the fourth quarter was $1.24 per share, surpassing analysts’ average estimate of $1.13 per share. Reporting by Rajesh Kumar Singh in Chicago and Abhijith Ganapavaram in Bengaluru; Editing by Saumyadeb Chakrabarty and Mark Potter. Our Standards: The Thomson Reuters Trust Principles.