VWDRY - Vestas Siemens Gamesa shares dive as GE Renewables hit with heavy loss

European wind stocks Vestas Wind Systems (OTCPK:VWDRY) and Siemens Gamesa (OTCPK:GCTAY) each plunge ~6% after General Electric reported sharp Q1 losses in its renewables segment. GE said sales in the unit tumbled 12% and posted a $434M operating loss, as results were hurt by policy uncertainty around tax credits and deferred customer investments, as well as rising prices for materials and logistics. While not new compared to other original equipment manufacturers or GE's previous comments, Citi analysts said the weakness in the GE renewables business was "largely expected but remains eye-catching" and "underscore(s) the picture of near-term pain," according to Bloomberg. Saying Europe's energy crisis has raised confidence in the impetus behind increased wind installations, Credit Suisse recently double-upgraded Vestas to Outperform from Underperform.

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Vestas, Siemens Gamesa shares dive as GE Renewables hit with heavy loss