General Electric’s (GE) revenue and earnings have been in decline. GE bulls believe new CEO Larry Culp can change things. If the U.S. economy has peaked, then the diminution in GE’s cyclical businesses is the natural order of things. GE’s core Power business is also facing stronger headwinds than its other operations. After explosions, certain Brazil power transmission companies have removed GE equipment:

After an unusual number of explosions, several Brazilian power transmission companies have started removing a piece of equipment made by General Electric Co (GE.N), a blow for GE’s Brazil unit as it battles competing suppliers from China and India.

There are close to 700 pieces of that equipment in Brazil’s grid, each costing up to 100,000 reais ($26,000). Power transmission companies have already launched tenders to buy replacement transformers while they discuss the costs and a schedule for the changes with GE and regulators.

GE contends there is no evidence the explosions were caused by failures of its equipment. Brazil’s electrical energy regulator believes the problems lies with GE’s equipment. Brazil’s Taesa and Colombia’s ISA have reportedly started replacing GE model CTH-550 transformers. China’s State Grid Corporation could be next to replace GE equipment within its network in Brazil.

This Is The Wrong Time For Quality Issues

The transformers were manufactured by GE’s Power Division, which was supposed to be the company’s growth engine. Power has struggled, particularly after the acquisition of Alstom’s (OTCPK:ALSMY) (OTCPK:AOMFF) Power division a few years ago. Read more:



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