# GE’s investors seek solutions to renewable energy, supply chain challenges Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-03-09 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: GE Investors Meeting: Focus on Loss-Making Renewable Energy Meta Description: Investors await General Electric Co's updates on loss-making renewables and aerospace challenges, despite strong performance elsewhere. URL: https://financedigest.com/ges-investors-seek-solutions-to-renewable-energy-supply-chain-challengeshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-03-08t185333z1lynxmpej270sprtroptp4general-electric-investors-1736814352122-compressed.jpg) By Rajesh Kumar Singh CHICAGO (Reuters) – When General Electric Co’s investors gather on Thursday, the focus will be on the company’s loss-making renewable energy business as well as persistent supply-chain challenges at its aerospace unit. A $100 billion reduction in debt since 2018, coupled with a successful spin-off of its healthcare business and strong demand at its aerospace business, have shored up Wall Street’s confidence in the Boston-based industrial conglomerate, driving up its shares up by nearly 80% since end-September. But renewable energy remains a problem. The unit, part of the company’s portfolio of [energy businesses](https://www.financedigest.com/schneider-and-greenyellow-target-smaller-businesses-with-energy-saving-technology.html "Schneider and GreenYellow target smaller businesses with energy saving technology") called GE Vernova, 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. It [reported a loss of $2.2 billion](https://www.financedigest.com/australias-macquarie-explores-6-billion-deal-for-britains-mg-sky-news-reports.html "Australia’s Macquarie explores billion deal for Britain’s M&G, Sky News reports") last year. 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](https://www.financedigest.com/3-factors-to-plan-for-in-2017-a-year-like-none-other.html "3 Factors to Plan for in 2017, A Year Like None Other"), including a possible delay or changing which assets are included. GE [Chief Executive](https://www.financedigest.com/exotix-draws-sberbanks-us-chief-executive-in-triple-hire-to-extend-global-capabilities.html "Exotix Draws Sberbank’s US Chief Executive in Triple Hire to Extend Global Capabilities") Larry Culp has acknowledged the renewables business requires “wiring and plumbing” before the spin-off. “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. GE is prioritizing the turnaround of its onshore wind business and has reduced the unit’s [global headcount by about 20% in a restructuring and resizing that is expected to produce savings this year](https://www.financedigest.com/global-economy-seen-facing-a-challenging-year-eurochambres.html "Global economy seen facing a challenging year -Eurochambres"). Nonetheless, although [tax credits](https://www.financedigest.com/eu-us-working-on-deal-to-make-ev-minerals-eligible-for-tax-credits-eu-official.html "EU, US working on deal to make EV minerals eligible for tax credits -EU official") for wind projects offered under the U.S. Inflation Reduction Act (IRA) have boosted demand in North America, the company doesn’t [expect a meaningful improvement in the onshore business](https://www.financedigest.com/german-businesses-expect-only-mild-recession-as-disruptions-ease.html "German businesses expect only mild recession as disruptions ease") in the first half of 2023. GE also [faces challenges](https://www.financedigest.com/under-saved-and-underprepared-women-face-challenges-saving-for-retirement.html "UNDER-SAVED AND UNDERPREPARED: WOMEN FACE CHALLENGES SAVING FOR RETIREMENT") in offshore wind since it was barred from making and selling its Haliade-X wind turbines in the U.S. after a jury found they infringed a patent owned by rival [Siemens Gamesa Renewable Energy](https://www.financedigest.com/siemens-energy-signs-7-billion-eur-offshore-power-deal-with-tennet.html "Siemens Energy signs 7-billion-eur offshore power deal with TenneT"). Bernstein analyst Brendan Luecke [expects GE’s renewables business to post another loss](https://www.financedigest.com/dollar-set-for-weekly-loss-amid-expectations-fed-will-slow-hikes.html "Dollar set for weekly loss amid expectations Fed will slow hikes") this year. But overall, GE is expected to reiterate its 2023 adjusted earnings [outlook of $1.60 to $2.00 per share](https://www.financedigest.com/ford-posts-lower-profit-issues-downbeat-outlook-shares-drop.html "Ford posts lower profit, issues downbeat outlook; shares drop") on Thursday. The aerospace business, which supplies engines to [Airbus and Boeing](https://www.financedigest.com/biman-bangladesh-to-buy-10-airbus-jets-breaking-boeing-reliance-minister.html "Biman Bangladesh to buy 10 Airbus jets, breaking Boeing reliance – minister"), is grappling with shortages of labor, parts and raw materials. The unit, GE’s cash cow, had unfilled customer orders [worth $135 billion](https://www.financedigest.com/why-a-quiet-revolution-in-the-cloud-is-worth-billions.html "Why A Quiet Revolution In The Cloud Is Worth Billions") at the end of 2022, up 8% from the prior year. GE has deployed [hundreds of employees](https://www.financedigest.com/hundreds-of-tyson-foods-employees-to-depart-as-company-closes-offices-wsj.html "Hundreds of Tyson Foods employees to depart as company closes offices – WSJ") to its aerospace suppliers’ sites to ease the bottlenecks but there has been no material improvement in the situation. GE has made great progress, but [risks remain,”](https://www.financedigest.com/with-greater-freedom-comes-heightened-risk-how-to-help-ensure-consumer-data-remains-secure-in-an-open-banking-system.html "With Greater Freedom Comes Heightened Risk: How to Help Ensure Consumer Data Remains Secure in an Open Banking System") JPMorgan analysts said in a note. (Reporting by Rajesh Kumar Singh; Editing by Ben Klayman, Kirsten Donovan) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---