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Reviewing its fourth-quarter results, the GE leadership, in a conference call for investors, said they expect the overall global market for new gas turbine orders in 2017 to be less than 35 GW. Orders are expected to be down to 30 GW for 2018. The OEM expects to maintain a 50% share in global orders.
"In December, we noted that the market was softer than expected, with Mccoy comments indicating that the industry could be heading for the lowest gigawatt year since 2002. We announced a 12,000-person reduction and a commitment to right-size our global manufacturing footprint. We are working to accelerate additional restructuring efforts in 2018 to support a market that could be as low as 30 GW."
In 2017, GE Power orders of $10.2 billion were down 25%, with equipment down 24% and services down 26%. Revenues of $9.4 billion were down 15%.
In the fourth quarter, gas turbine orders were up 1 unit at 24 versus 23 units in prior year, with the increase driven by nine H units versus eight in the prior year. Total-year gas turbine orders were 75 units, which is down 9 versus prior year.
Total-year gas turbine shipments was at 102 in 2017. The company expects shipments to be in the range of 60 to 70 units, with 15 H units.