- General Electric (NYSE:GE) fell another 4% in today's trade to its lowest close since July 10, 2009 and has plunged 12% since revealing problems with its power turbines.
- French power utility EDF (PA:EDF) said earlier today that it was shutting down a GE turbine at its Bouchain power plant for a month due to the same turbine blade problem that has shut down similar plants in the U.S.
- “It is unclear whether the failure was operating situation dependent (e.g., altitude, temperature, humidity, operating parameters, etc.) and whether these fixes will have to be applied to all units,” UBS analyst Stephen Winoker writes as he maintains his Neutral rating on GE. If it’s a coating or manufacturing issue, he expects a “broad-based” fix will be available.
- Winoker worries that this kind of high-profile problem is in the news; while mistakes happen, they should not occur on large, mission-critical safety-first products such as gas turbines, he says.
- Now read: Will General Electric Break On Final Capitulation?
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