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Jan 24 (Reuters) – General Electric (GE.N) on Tuesday forecast lower-than-expected adjusted earnings for 2023.
GE shares fell about 1% before the opening bell after the company forecast a $600 million to $200 million operating loss in 2023 for energy business GE Vernova.
The renewable energy sector continues to post poor results due to policy uncertainty after the tax credit for renewable power production ends in 2021, hurting customer demand.
Parts shortages are also hampering overall production, and inflationary pressures are driving up costs and impacting margins, forcing GE to raise prices.
GE, which completed its healthcare spin-off earlier this month, posted overall adjusted earnings per share for the full year compared to the average analyst forecast of $2.36 per share, according to Refinitiv. said he expects it to be between $1.60 and $2.00.
The company’s aerospace business is expected to continue to perform well driven by strong demand for engines and aftermarket services. GE Aerospace’s 2023 operating profit is expected to grow from $5.3 billion to $5.7 billion.
Reported by Abhijith Ganapavaram, Bangalore. Edited by Saumyadeb Chakrabarty
Our standards: Thomson Reuters Trust Principles.
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