GE's coronavirus troubles likely to hit power business, not just aviation

FILE PHOTO: The General Electric Co. logo is seen on the company's corporate headquarters building in Boston, Massachusetts, U.S. July 23, 2019. REUTERS/Alwyn Scott

“We have deferred routine maintenance activities to the limit possible at these facilities but are still performing the work needed to maintain reliability,” Jim Hopson, a spokesman for the Tennessee Valley Authority, which operates across seven states, told Reuters. It operates a fleet of more than a dozen large GE-made natural gas turbines.

GE reported $3.6 billion in power-services revenue last quarter, second only to $5.4 billion in services revenue at its aviation unit. Maintenance of such equipment is typically provided under long-term contracts. Some bill by hours of plant or engine use. For others, accounting rules require work to be performed before GE can record revenue, industry experts said.

Sales of new power equipment also are at risk. “Utilities are likely to be watching power demand carefully, and may postpone capital investments until they get greater visibility on demand for power,” Hipple said. Wall Street analysts expect GE to post 8 cents a share in profit for the first quarter, and have cut price targets for GE stock by nearly one-third since early March, to an average of $9.46, according to data from Refinitiv.Maintenance deferrals do not pose immediate risk to electricity supplies, utilities and industry experts say. Lower demand cuts strain on equipment. New York City power demand is down by 21%, on average, the New York Independent System Operator said.

Just like subprime. Ask daddy state for money. God save The invisible hand!

China inflicted massive economic destruction to entire world except itself & her close partners-in-crime allies. The outcry of life of affected innocent civilians, victims of this criminal war staged managed by China with false n misleading information will kill China forever.

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