General Electric Company GE recently entered into an offshore wind partnership deal with Toshiba Energy Systems and Solutions Corporation for the localization of GE Haliade-X offshore wind turbine’s production process in Japan. The deal, which is built on long-standing partnership between both the companies, aims to make GE’s offshore wind technology more competitive in future auctions in Japan. However, financial terms of the deal were kept under wraps.
Notably, per the deal, both the companies will collaborate on technology, production facilities, construction, operation, as well as maintenance skills. General Electric will be responsible for providing Haliade-X technology and components for nacelle assembly. Also, the company will help Toshiba in building a local supply chain to ensure a smooth manufacturing process. Toshiba will work on assembling, storing and transporting Haliade-X nacelles, apart from offering preventative maintenance services. Toshiba will also be accountable with critical sales and commercial activities in Japan’s market.
General Electric’s advanced offshore wind technology, combined with Toshiba’s strong local production competences, efficient workforce and in-depth knowledge in energy domain, will likely help the company in capitalizing the opportunities in the developing offshore wind market in Japan.
Separately, GE Hitachi Nuclear Energy and GE Digital announced the launch of a digital solution — Outage Planning and Analytics. Designed for nuclear power plant operators, the solution will facilitate nuclear power plant operators in planning, scheduling and performing maintenance and refueling outages. It’s worth mentioning here that GE Hitachi Nuclear Energy, a nuclear alliance between General Electric and Hitachi Ltd. HTHIY, is a global leader in advanced reactors and nuclear services.
Zacks Rank, Price Performance and Estimate Trend
General Electric, with a $115-billion market capitalization, currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the quarters ahead, the company is poised to gain from its portfolio-restructuring program, expansion in digital business and efforts to deleverage balance sheet. Moreover, its efforts are on track to reduce the exposure to the GE Capital business. However, the persistence of the market-related challenges in Aviation as well as weakness in the onshore wind market in the United States might be concerning in the near term.
In the past six months, General Electric’s share price has increased 41.5% compared with the industry’s growth of 20.2%.
In the past 30 days, the Zacks Consensus Estimate for the company’s earnings has been raised 8.3% to 26 cents for 2021 on account of five upward estimate revisions against one downward. In addition, over the same timeframe, the consensus estimate for 2022 earnings has trended up 1.9% to 53 cents on three upward estimate revisions against none downward revisions.
Two companies in the industry that compete with General Electric are Honeywell International Inc. HON and 3M Company MMM.
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