General Electric’s (GE) energy business turned in another solid quarter today, with profits growing 13% from the year prior to $1.79 billion. It was the only part of the business that saw profits grow.
On the earnings call, CEO, Jeff Immelt said smart grid orders were up 70%, wind is in better shape and there is a lot of interest in nuclear power. The company is waiting on more stimulus cash to be dispersed around the world. Once that gets out, GE thinks it will make more money.
Wind turbine orders are expected to grow in the second half of the year, now that the Treasury has clarified the rules for issuing grants on renewable projects. (See here for an explanation.)
Look for the energy business to continue its excellent run. As Keith Johnson at Environmental Capital points out, sales from the energy biz counted for 20% of GE’s total last year. This year, it’s 24%, and it accounts for 36.7% of segement profits.
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