3 reasons general electric will rule wind energy

14
3 Signs General Electric Will Rule Wind Energy

Upload: the-motley-fool

Post on 02-Dec-2014

5.681 views

Category:

Investor Relations


1 download

DESCRIPTION

General Electric Company is betting big on wind – and it's going to pay off.

TRANSCRIPT

Page 1: 3 Reasons General Electric Will Rule Wind Energy

3 Signs General Electric Will Rule Wind Energy

Page 2: 3 Reasons General Electric Will Rule Wind Energy

General Electric is an industrial giant

• $146B 2013 revenue

• $270B market cap

• $657B total assets

Page 3: 3 Reasons General Electric Will Rule Wind Energy

But Giants Can Still Grow

“GE has stayed competitive for more than a century—not because we are perfect—but because we make progress. Progress is about getting better, being better, doing better.”

- General Electric Company 2013 Annual Report

GE invests 5-6% of revenue into R&D every year

Justin Loiseau
p.5 http://www.ge.com/ar2013/pdf/GE_AR13.pdf
Page 4: 3 Reasons General Electric Will Rule Wind Energy

And GE Is Counting on Wind

The company’s “ecomagination” initiative just got a $10 billion green light in March for more research into, among other items, wind energy.

Specifically, GE will focus on:• Reducing costs• Improving outputs

Justin Loiseau
p.5 http://www.ge.com/ar2013/pdf/GE_AR13.pdf
Page 5: 3 Reasons General Electric Will Rule Wind Energy

Despite slower sales

Wind turbine orders tapered off in 2013 as companies took a breather from a tax credit-induced 2012 rush.“Power & Water [division encompassing wind energy] revenues of $24.7 billion decreased $3.6 billion, or 13%, in 2013 as lower volume ($3.9 billion), primarily equipment at Wind and Thermal, and the effects of the stronger U.S. dollar ($0.1 billion) ) were partially offset by higher prices ($0.2 billion) and other income ($0.2 billion) primarily related to a sale of assets.”

-GE 2013 Annual 10-K Filing

Justin Loiseau
p.5 http://www.ge.com/ar2013/pdf/GE_AR13.pdf
Page 6: 3 Reasons General Electric Will Rule Wind Energy

Here’s Why

Page 7: 3 Reasons General Electric Will Rule Wind Energy

1) Scale

That’s equivalent to:

– 6.4% of the U.S.’ total wind capacity

– One-third of our nation’s total solar power capacity

GE announced in May that it had received 3,900 MW of wind turbine orders since the start of last year alone.

Page 8: 3 Reasons General Electric Will Rule Wind Energy

1) Scale

Even with falling wind sales for 2013, GE still has turbine backorders totaling approximately 2,900 MW – that’s enough to hold GE over for at least the next couple years as wind infrastructure scales up and readjusts.

Page 9: 3 Reasons General Electric Will Rule Wind Energy

2) Technology

The company’s new line of “Brilliant” turbines are specifically designed to take advantage of Big Data, using streaming information to deliver steady electricity as efficiently as possible.

GE is building more than windmills. Its extensive energy experience has allowed it to create an entirely new system, specifically catered to maximize wind’s power potential.

Page 10: 3 Reasons General Electric Will Rule Wind Energy

2) Technology

General Electric has been researching and advancing energy storage for years, but new players like Tesla Motors, Inc. (Nasdaq: TSLA) could result in dramatic drops in battery costs as soon as 2017.

Wind energy is also benefitting from major developments in energy storage, enabling wind to electrify even when there’s no breeze to be seen.

Page 11: 3 Reasons General Electric Will Rule Wind Energy

3) Experience

Unlike many renewable and wind players, General Electric has a long history in the energy sector.

When utilities and power producers are looking for a reliable company:

They know they can trust GE.

Page 12: 3 Reasons General Electric Will Rule Wind Energy

3) Experience

And in turn, GE can live up to expectations.

The company’s hefty R&D spending, lessons learned from other energy ventures, and existing relationships with renewable energy companies all give it a business background few other wind manufacturers can hope to match.

Page 13: 3 Reasons General Electric Will Rule Wind Energy

A Growing Opportunity

Wind energy has the capability to power the entire United States – four times over.

If General Electric Company can be even a partial leader of that partial growth, its seemingly whimsical wind energy investments will pull massive profits for years to come.

Page 14: 3 Reasons General Electric Will Rule Wind Energy

Diversify Your Energy Investments

As wind energy ramps up, record oil and natural gas production is also changing the lives of millions of Americans. The IRS is encouraging investors to support

our growing energy renaissance, offering you a tax loophole to invest in some of America’s greatest energy companies. Take advantage of this profitable

opportunity by grabbing your brand-new special report, “The IRS Is Daring You to Make This Investment Now!,” and you'll learn about the

simple strategy to take advantage of a little-known IRS rule. Don't miss out on advice that could help you cut taxes for decades to come. Click here to learn

more.