The renewable energy business unit of GE has reported a US$ 302 million net loss in the first quarter of 2020, compared to a loss of US$ 187 million a year-ago. Orders of US$3.1 billion were down 13% reported and 11% organically, with equipment and services orders down, while international orders were up 11%.
Revenues of US$ 3.2 billion were up 26%, mainly driven by onshore wind, with new unit turbine deliveries of 731 and repower kit deliveries of 219. Segment profit of negative US$ 302 million was down 61%, mainly driven by the non-recurrence of a non-cash gain in the first quarter of 2019, supply chain disruption due to COVID-19, and fulfillment delays, partially offset by higher onshore wind volume.
Each of GE’s businesses and Corporate are taking cost and cash actions to manage risk and proactively mitigate the financial impacts from COVID-19. Across the company, GE is targeting more than US$2 billion in operational cost out and more than US$3 billion in cash preservation activities in 2020 to improve its cost structure and preserve its ability to serve customers.
Given the evolving nature of the COVID-19 pandemic, at this time, GE cannot forecast with reasonable accuracy the full duration, magnitude, and pace of recovery across end markets, operations, and supply chains. As a result, GE withdrew its guidance for 2020.