GE expects wind revenues to drop 40%

UNITED STATES: GE expects revenues from turbine sales to fall 40% in 2013, largely due to the ending of the Production Tax Credit (PTC) subsidy.

Speaking on Friday as the firm presented its third quarter results, GE vice chairman and CFO Keith Sherin said he expected the 40% decline in sales to cost the company three cents for every share, adding that a fall in new orders was already noticeable.

"[Energy] Orders of $6.5 billion were down 17% [from Q3 2011]," said Sherin.

"We have said it before, but the impact of Wind is huge here. Ex-Wind, energy orders were flat year-over-year. Equipment orders of $3.4 billion were down 24%. Again, ex-Wind equipment orders were up 11%. Renewable orders of $518 million were down 72%. We had orders for 241 Wind turbines versus 781 last year."

However, while turbine orders are already suffering dramatic falls, there has been a spike in sales and shipping as US developers seek to complete projects before the PTC expires at the end of the year.

"We had Renewable revenue of $2.1 billion, which was up 61%. We shipped 1,014 wind turbines versus 633 last year."

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