GE's 2023 profit forecast weighed down by renewable business - CNBC

General Electric on Tuesday reported better-than-expected quarterly earnings on robust demand for its jet engines and power equipment, but offered a disappointing profit forecast for this year as it struggles with persistent problems at its renewable energy business.

The Boston-based company also expects to generate higher free cash flow this year as its aviation business is tipped to benefit from strong demand for engines and after-market services.

The company's renewable energy business has been facing challenges due to inflation and supply chain pressures.

In an interview, Chief Executive Larry Culp said the onshore business is expected to get a boost following the restoration of the tax credit for wind projects.

Culp said high inflation is also posing a challenge for offshore wind business as it is making customers review economics of their projects.

GE, which completed the spin-off of its healthcare unit earlier this month, has plans to spin off its energy businesses, including renewables, into a separate company next year.