General Electric’s (GE’s) worldwide energy business CEO stated that the firm expects its power and renewable energy operations to be profitable in 2023, and even more successful in 2024, after weathering market headwinds that present challenges this year.
Speaking at the company’s March 10 investor day event, Scott Strazik claimed GE is prepared to turn around “unacceptable” financial outcomes in its renewable energy segment, while he expects onshore wind to be unprofitable this year owing to a downturn in the North American market. Strazik predicted that the company’s electricity and renewable energy segments will have a low-single-digit profit margin in 2023, followed by a mid-single-digit profit margin the following year.
GE said last year that it will split into three independent publicly listed entities, with its core GE business concentrating on aviation. GE Healthcare is anticipated to be split off early next year, with GE Power, GE Renewable Energy, and GE Digital merging to form a single entity in 2024. GE reported decreased revenues for Power, Renewable Energy, and Healthcare in the fourth quarter of 2021 last month, with management indicating that improving the company’s financial status is a focus for 2022.
GE sold its airplane leasing business to the Irish organization AerCap last year in a $30 billion deal that the company stated would lower its debt by a comparable amount. Competitors in the power generating equipment area have also had financial difficulties and have been restructured in recent years, with rival Siemens splitting off its energy and healthcare operations.