(Bloomberg) -- General Electric Co. fell behind a pair of rivals in sales of gas-fueled power turbines, a blow for a manufacturer that typically leads the market.
Mitsubishi Hitachi Power Systems won more than 55 percent of the global orders by energy capacity in the first quarter, the company’s best performance on record, Barclays Plc said in a note Thursday. Siemens AG had 26 percent, while GE’s share was 14 percent, Barclays said, citing McCoy Power Reports data.
GE is retrenching in the market after Chief Executive Officer John Flannery acknowledged that the company was late to recognize the slowing demand that now is hurting global gas-turbine sales. Since last year, he has replaced the leadership of GE Power and promised massive cost cuts in the division, the Boston-based company’s largest.
While the first-quarter performance means risks to 2019 results are rising, there may be hidden upside for GE, Barclays analyst Julian Mitchell said in the report. The figures “may also reflect a greater internal focus at the company on restructuring the Power business, which should be well-received by investors,” he said.
By the number of gas-turbine units sold, Siemens was the market leader, pulling in 30 percent, according to the report. GE was second, with 27 percent, while Mitsubishi Hitachi had 14 percent.
The gas-power market has softened from GE’s earlier expectations, Chief Financial Officer Jamie Miller said on an April 20 conference call with analysts. Still, the company expects strength in the second half of the year, both in turbine shipments and the related services business, she said.
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