GE's renewables division losing millions of dollars
US industrial group General Electric’s renewables division, GE Renewable Energy, tallied hundreds of millions of dollars in losses in the first quarter of year.
GERE booked an operating deficit of USD 434m in Q1, a bigger loss than analysts’ forecast of USD 370.3m, according to Bloomberg News.
In the same period last year, the item came to negative USD 234m.
Revenue ran to USD 2.87bn against estimates of USD 3.07bn by analysts, amounting to a 12-percent drop from the same period last year.
”Segment margin of [negative 15.1 percent, -ed.] contracted 790 basis points reported and 820 basis points organically, driven by volume reductions in US Onshore Wind combined with cost inflation in materials,” writes GE in the earnings release.
Aside from lower volumes, the margin in onshore wind was negatively affected by product mix and transitions, the company writes.
Order intake also contracted to a total of USD 2.8bn, decreasing organically by 19 percent due to reduced order intake within onshore wind.
The fewer orders owe to ”inflation-driven customer delays and the US market decline.”
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