Power and renewables divisions positive news for GE

General Electric has had to lower its profit forecast for this year, however the performance of its power and renewables business helped the company to a 6.7 percent rise in quarterly profit.

Friday’s news shows the ongoing issues being faced by companies contending with slow economic growth, particularly in the oil and gas business.
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The US corporation adjusted profit jumped 10 per cent to 32 cents a share, beating the 30 cents that analysts estimated, on average, according to Thomson Reuters.

The company said revenue fell 25 per cent at its oil and gas business, 22 per cent at its transportation segment and also 22 per cent at its energy connections and lighting unit. Its renewable energy business had the biggest growth, with revenue rising 66 per cent as it sold more wind turbines.

Analysts had been targeting second-half growth of about 15 per cent in GE’s power business, GE’s largest division. In the third quarter, power revenue grew only about 7 per cent.

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