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☆ GE sticks to 2023 earnings forecast amid renewable energy troubles
▼ + stars: | 2023-03-09 | by ( Rajesh Kumar Singh | ) www.reuters.com time to read: +1 min

CINCINNATI, Ohio, March 9 (Reuters) - General Electric Co (GE.N) on Thursday reiterated its earnings outlook for this year as booming demand at its aerospace business is expected to make up for challenges at the company's renewable energy business. But GE Vernova, the company's portfolio of energy businesses, which includes renewables, is expected to report an operating loss of between $200 million and $600 million in 2023, GE said. GE's renewable energy business has failed to turn a profit in the past eight quarters due to a combination of weak demand, higher raw materials and labor costs and supply-chain pressures. This performance has cast a shadow over the company's plan to spin off GE Vernova into a separate company next year. The Boston-based industrial conglomerate said it is "transforming" its renewable energy business and expects profitable growth in the long-run.

☆ GE's investors seek solutions to renewable energy, supply chain challenges
▼ + stars: | 2023-03-08 | by ( Rajesh Kumar Singh | ) www.reuters.com time to read: +3 min

But renewable energy remains a problem. Analysts have raised questions about whether GE may be forced to alter a plan to spin off GE Vernova into a separate company next year, including a possible delay or changing which assets are included. "I want to kind of understand is there any chance at all that Vernova will not include GE wind," William Blair analyst Nicholas Heymann said. But overall, GE is expected to reiterate its 2023 adjusted earnings outlook of $1.60 to $2.00 per share on Thursday. The aerospace business, which supplies engines to Airbus (AIR.PA) and Boeing (BA.N), is grappling with shortages of labor, parts and raw materials.

☆ Robinhood’s stock awards tell a cautionary fable
▼ + stars: | 2023-02-22 | by ( John Foley | ) www.reuters.com time to read: +7 min

The now-abandoned payouts to Tenev and Bhatt were a slab of “market-based restricted stock units” distributed ahead of Robinhood’s initial public offering in July 2021. The system works in reverse, too, however: When executives give back stock awards, the company gains nothing in cash terms. U.S. accounting rules treat stock awards geared to a company’s stock price as a gift that cannot be returned. In short, by handing back their awards, Robinhood’s founders have neither robbed from themselves, nor given to anyone else. Even without this unhappy effect on earnings, shareholders should be wary of the kinds of awards Robinhood doled out at its public company debut.

CHICAGO, Jan 24 (Reuters) - General Electric Co (GE.N) on Tuesday reported better-than-expected quarterly earnings on robust demand for its jet engines and power equipment, but offered a disappointing profit forecast for this year as it struggles with persistent problems at its renewable energy business. It, however, forecast an operating loss between $200 million and $600 million for its energy business GE Vernova in 2023. The company's renewable energy business has been facing challenges due to inflation and supply chain pressures. Culp said high inflation is also posing a challenge for offshore wind business as it is making customers review economics of their projects. He expects inflation to be a "test" for the company even as it adjusts its prices to offset higher costs.

☆ Watch CNBC's full interview with Larry Culp on fourth-quarter earnings
▼ + stars: | 2023-01-24 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full interview with Larry Culp on fourth-quarter earningsLarry Culp, GE Chairman and CEO, joins 'Squawk on the Street' to break down the company's Q4 2022 results that beat on earnings and revenue. Larry also discusses GE's outlook on aerospace and energy.

☆ GE's 2023 profit forecast weighed down by renewable business
▼ + stars: | 2023-01-24 | by ( ) www.reuters.com time to read: +1 min

Jan 24 (Reuters) - General Electric Co (GE.N) forecast a lower-than-expected 2023 adjusted profit on Tuesday, as the industrial major struggles with persistent problems at its money-losing renewable energy business. Shares in GE were down 2% at $78.29 in premarket trade after the company forecast an operating loss between $200 million and $600 million for its energy business GE Vernova in 2023. The company's renewable energy business has been facing challenges due to inflation and supply chain pressures. 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, beating analysts' average estimate of $1.13 per share.

Oct 25 (Reuters) - General Electric Co (GE.N) on Tuesday trimmed its full-year profit forecast after reporting a decline in third-quarter earnings, primarily due to higher warranty and related reserves at its renewable energy business. The company, which is in the process of breaking up into three companies, is facing challenges at its onshore wind business. The restructuring will also affect jobs at its renewable energy unit's headquarters, he said. The company said corporate restructuring along with cuts at renewable energy business will cost $1.3 billion and generate $950 million in annualized savings. Excluding a $500 million warranty and related reserves at its renewable energy business, quarterly profit would have been 75 cents a share.

☆ GE CEO sees 'choppier' operating environment next year
▼ + stars: | 2022-10-25 | by ( Rajesh Kumar Singh | ) www.reuters.com time to read: +2 min

"But it's likely to be a more difficult environment next year for everybody than it has been here in (20)22." With no signs of a letup in air travel demand, the Boston-based company sees "significant" long-term growth opportunity for its aviation business. As part of efforts to mitigate the problem, he said the company is carrying excess inventory and ordering some parts and raw materials well in advance. "We are carrying inventory and incurring excess cost because of these supply-chain issues," Culp said, adding that excess inventory and costs are "very real" near-term challenges for the company. It is also helping suppliers reduce their reliance on labor, he said.

☆ GE is hurting but Larry Culp’s legacy has hope yet
▼ + stars: | 2022-10-25 | by ( Lauren Silva Laughlin | ) www.reuters.com time to read: +3 min

NEW YORK, Oct 25 (Reuters Breakingviews) - For Larry Culp, it’s not the journey but the destination. If all goes perfectly, it could be enough to salvage Culp’s legacy. Orders plummeted 43% year-on-year and revenue declined 15% as demand in the power division, which focuses on more traditional sources, rose. In healthcare, both orders and revenue were up just slightly in the first nine months of the year. If it succeeded in juicing up Vernova’s revenue, it could be game-changing for Culp’s legacy too.

☆ Delta Looks to Improve Margins, Cut Debt as Travel Rebounds
▼ + stars: | 2022-09-19 | by ( Nina Trentmann | ) www.wsj.com time to read: +8 min

September has been off to a good start, Mr. Janki said at a conference last week. Consumer demand remains strong and corporate travel—an important income generator for Delta before the pandemic—is recovering, Mr. Janki said. “We are keenly focused on continuing to strengthen the balance sheet and drive debt down,” Mr. Janki said. Adjusted net debt stood at $19.6 billion at the end of the second quarter, Delta said. Mr. Janki wants his 600-people strong finance team to rely more on data and improve its systems, including streamlining information in the cloud.

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