General Electric Co forecast a lower-than-expected 2023 adjusted profit on Tuesday, as the industrial major struggles persistent problems at its money-losing renewable energy business.
Shares of GE fell about 1% before the opening bell after the company forecast an operating loss between $600 million and $200 million for its energy business GE Vernova in 2023.
The renewable energy unit has been delivering poor results due to policy uncertainty following the expiry of renewable electricity production tax credits in 2021, which has hit customer demand.
Parts shortages have also hobbled overall production and inflationary pressures have driven up costs, hitting margins and forcing GE to raise prices.
GE, which completed the spin-off of its healthcare unit earlier this month, said it expects overall adjusted profit per share of $1.60 to $2.00 for the full year, compared with the average analyst expectation of $2.36 per share, as per Refinitiv.
Its aerospace business is set to continue to boost results due to strong demand for engines and after market services. GE Aerospace’s operating profit is expected to come in between $5.3 billion and $5.7 billion for 2023.
