GE Earnings: Appliances Out, Energy In

WSJ’s Environmental Blog points out GE’s strength is now its energy businesses, both traditional and renewable. 

GE Earnings: Appliances Out, Energy In

Posted by Keith Johnson

General Electric didn’t disappoint with its second-quarter earnings — they were as dismal as expected, with a profit drop of more than 5%.

The bright spot, as in past quarters? Infrastructure and energy. And regardless of what the ads might say, that isn’t all wind turbines and green energy (though GE’s wind business is going gangbusters). There’s plenty of old energy in there, too, from gas turbines to coal and nuclear.

Which is why GE is rubbing its hands. World leaders are trying to figure out whether their priority is to tackle climate change with a lot more clean energy, or to fight poverty by bridging the energy gap in poor countries with a lot more old energy. Unlike a lot of its specialized rivals, GE has the luxury of cheering on both camps — it can sell wind turbines to Texans and coal plants to India. That helps explain the conglomerate’s makeover away from 100-year old lightbulbs and toward new energy sources.

And closes with the current economic conditions favor GE.

Now, GE’s just got to hope the dollar stays weak. That means pricey oil, more attractive renewable energy, and an easier export story for all of its energy products.