Tomahawk, WI 10/24/2013 (BasicsMedia) – General Electric Company (NYSE:GE)’s backlog orders now total to around $266 billion, which is a record of sorts considering that this is a company with a market cap of $266.20 billion. In essence, this means that GE has a backlog of orders of equal value to its market cap. Investors were pleased with this when the company recently released its third quarter 2013 financial results. More importantly is the fact that the company posted 11% increase in its profits. This news was very good for GE shares, since it helped them to reach their best level ever since 2008.

Why GE’s Wind Turbines Division is Causing Jitters

However, a few things have caught my attention with the recently announced third quarter 2013 financial results. First, GE announced that it successfully shipped close to 407 wind turbines to its customers in various locations. This might seem quite impressive, until you look at the company’s figures for 2012, especially where wind turbines are concerned. This year’s figure of 407 wind turbines represents a drop of around 40% from what GE announced for the same period in 2012. What happened to cause this drop in sales figures for GE’s wind turbines?

There is a lot of concern regarding the future of wind turbines and if GE should rely on them for business, seeing that their sales figures have dropped where these items are concerned. While the potential of wind is recognized greatly by GE, and there is no argument that the company has collected a lot of revenue in the past from this division, I think it is a good idea to look at other alternatives in case demand for wind turbines continue to take a hit. GE has been doing well and is on the verge of repaying the debt it took from the government in the form a stimulus package.

GE’s Main Competitor in Wind Turbines Not Having a Better Experience

Where the sale of wind turbines is concerned, GE’s major rival or competitor has always been Siemens AG, which is enjoying an increase in orders for these items, and this is having a major influence on its balance sheet. The orders appear to be from Africa, Middle East, C.I.S, and Europe. What is interesting even with Siemens AG is the fact that the company is not enjoying increased profits despite the increase in orders. In fact, Siemens AG’s profit from wind turbines for the third quarter of 2013 is $172.45 million, a drop of 26% from the same period in 2012.

Overall, the bad news posted regarding GE’s wind turbines division has not affected the view held by investors on this company. Its latest quarterly financials were well received by investors thus helping its shares to reach higher than they have done in the last 5 years. The company’s top executives appear unperturbed and still hold on to their view that the wind turbines division still has a lot of potential, even in emerging markets, which can drive GE towards better revenues and into a period of sustained profitability going forward. I think there is nothing to worry about, yet.

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