On this morning’s earnings call, General Electric’s (GE) CEO, Jeff Immelt teased out a new big-city smart grid project which he says will be announced next week.
Immelt didn’t say what city would be getting on board, though. Anyone out there got any ideas? We’ll keep our eyes and ears open for any more information. Immelt said that the smart grid could provide $500 million in business for each city with a 1 million population.
Overall, GE’s energy business was very strong, with that segment’s profit growing 19% year-over-year to $1.3 billion. CFO Keith Sherin said the energy group turned in a “solid performance.”
Wind turbine orders for the quarter were down 8% with 433 units sold, whcih is down by 130 units. Sherrin said the price for turbines was up 6%. Immelt says he expects wind orders to accelerate later in the year.
We’ll do better than most on the stimulus, said Immelt, referring to GE’s energy portfolio. He also said GE would work with the government on clean energy projects.
UPDATE: Here’s a little extra via Seeking Alpha on the wind buisness from the call:
Jeff Immelt: I think the thing that’s really picked up in the last month is that commitments that might have slipped out of the year because of lack of financing have now started to firm up. And so I think that’s the encouraging piece because people see on the horizon that the credit markets are opening up to finance them and that the stimulus is going to have some advantages for them.
So I actually think that the shipments in ’09 will improve in wind even while you might not see new projects announced just because there was such a lot of activity in ’06, ’07, ’08.
Keith Sherin: It’ll still be down year-over-year, but I think the commitment activity, as you said, has really picked up.
Just one comment on the energy services for Steve. The overall price is up 37. The equipment’s about 5 and service was lower than that.
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