Jan 24 (Reuters) – General Electric Co (GE.N) on Tuesday forecast a weaker-than-expected 2023 adjusted profit as the industrial giant struggles with persistent problems in its money-losing renewable energy business .
General Electric shares fell about 1% before the open after the company forecast an operating loss at its energy business GE Vernova in 2023 of between $600 million and $200 million.
The renewable energy sector underperformed after the expiration of renewable electricity production tax credits in 2021 due to policy uncertainty, hitting customer demand.
Parts shortages have also hampered overall production, and inflationary pressures have pushed up costs, impacting profit margins and forcing GE to raise prices.
GE, which completed the spinoff of its healthcare unit earlier this month, said it expects full-year adjusted profit of $1.60 to $2.00 per share, compared with analysts’ average estimate of $2.36 per share, according to Refinitiv.
Its aerospace business will continue to lift performance, driven by strong demand for engines and aftermarket services. GE Aerospace’s operating profit is expected to be between $5.3 billion and $5.7 billion in 2023.
Reporting by Abhijith Ganapavaram in Bengaluru; Editing by Saumyadeb Chakrabarty
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