My gut feeling is more head chopping will occur in GE Power before the end of summer. This is only a gut feeling as I don't have any intelligence on the scheduled date. Too many bad things are getting worse. Sales are without a doubt dropping, cost is escalating (turbine failures are not helping), and cash flow continues to get worse. NPI and other Capital Projects continue to be eliminated after the March Layoffs. A new gas turbine plant is operational in Saudi Ariabia that plans to build the 7H turbine frames taking work volume from Greenville. Customer confidence in GE is declining contributing to more lost sales. If Greenville has 3200 employees at an average salary of $75,000 that adds up to more than $240 Million dollars in base annual salaries alone (does not include payroll taxes, and benefits). How many turbines does Greenville have to sale to make up the Salaries alone? This doesn't even include the massive overhead of plant operational cost. Power bill alone is probably over $1 Million per year. These are all hypothetical numbers as I'm sure the actual cost to operate Greenville is a massive number. To make a profit, we have to sell many gas turbines. Someone smarter than me should take a stab at the actual number.
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2 replies (most recent on top)
Excellent prediction, it came true just a week before end of summer!
What does this mean?