Power equipment maker GE Vernova expects its wind segment to post a core loss of $300 million in the third quarter due to additional costs related to offshore blade failures, the company said on Thursday.
The projected core loss in GE Vernova's wind segment in the current quarter is more than double the loss of $117 million in the previous quarter. The company cited recent blade problems that substantially stalled progress on two offshore wind projects under construction.
"We didn't get anywhere near as much work done over the course of summer as we anticipated," GE Vernova Chief Executive Officer Scott Strazik said at a conference held by Morgan Stanley.
Some work has resumed on both projects, which include Vineyard, off the coast of Massachusetts, and Dogger Bank, near Yorkshire, England.
"We've got to rebuild momentum on that process because time is an enemy here," Strazik said. The longer it takes to complete the wind projects, the more costs accrue, he added.
GE Vernova said it expects the wind segment to be modestly profitable in the fourth quarter.
The company expects improved performance in its power and electrification units would cushion the blow from the wind unit.
Shares of the company fell 3.9% in premarket trading, but they rebounded and were last up 2.7% early in the afternoon.
(Reuters - Reporting by Mrinalika Roy, Sourasis Bose and Laila Kearney; Editing by Maju Samuel and David Gregorio)
