General Electric (GE) has forecast a lower-than-expected profit for this year as the industrial giant continues to struggle with its slumping renewable energy business.
General Electric is now forecasting a 2023 operating loss of $600 million U.S. to $200 million U.S. for its energy business called “GE Vernova.”
The renewable energy unit has been losing money steadily for years and been hampered by policy uncertainty following the expiry of renewable electricity tax credits in 2021.
Parts shortages and supply chain problems have also hurt the company’s overall business, while inflationary pressures have driven up costs, hurt margins, and forced General Electric to raise prices on its customers.
General Electric earlier in January spun-off of its healthcare unit.
The company said it now expects that its overall profit per share for 2023 will be $1.60 U.S. to $2 U.S., compared with the average analyst expectation of $2.36 U.S. per share, according to Refinitiv data.
General Electric’s stock is up 5% over the past 12 months at $79.77 U.S. per share.
