Wind Manufacturing Issue
Q: What's the status of the manufacturing issue in the Wind segment?
A: The company identified a material manufacturing deviation at their Gaspé, Canada factory, affecting about 150 offshore wind blades. They are re-inspecting all blades using non-destructive testing and have no indications of an engineering design flaw. Some collections may shift from 2024 into 2025, which is already included in their financial guidance.

Gas Power Equipment Orders Surge
Q: What's driving the surge in Gas Power equipment orders?
A: Year-to-date, they've booked 9 gigawatts of Gas Power equipment orders, with equipment orders growing over 50% in both the first and second quarters. The second half of the year is expected to be even stronger, driven by both U.S. and global demand, not just a single market or transaction.

Improved Margins in Electrification and Power
Q: How are margins developing in the Electrification and Power segments?
A: In Electrification, margins in the backlog expanded by 5 full points at the end of 2023, and pricing continues to get stronger. Power and Electrification are seeing better pricing and stronger profitable orders, leading to improved margins.

Wind Segment Profitability Outlook
Q: What is the outlook for Wind segment margins and profitability?
A: They expect high single-digit onshore wind margins in the second half of 2024 and the segment turning profitable in 2025. Despite challenges, they remain confident and anticipate a revenue inflection point in 2026.

Supply Chain Investments for Gas Turbines
Q: Are there capacity constraints for Gas Turbines, and what's being done?
A: They have capacity at their Greenville factory but need to invest in the supply chain to access more parts, which may involve additional investments. These investments are already accounted for in their financial guidance.

Improved Execution in Electrification
Q: What's driving the improved margins in Electrification this year?
A: Better execution on contracts is leading to margins moving from mid-single digits to high single digits for the full year 2024. Strong pricing on shorter-cycle components is also contributing to improved margins in the second half.

Lean Manufacturing Benefits
Q: How is lean manufacturing impacting margins and cash flow?
A: The shift to high-tech single-piece flow has eliminated rework and freed up capacity. Investments in lean processes and supply chain are improving working capital and boosting cash flow, leading to better margins.

Grid Infrastructure Business Growth
Q: What is the outlook for the Grid and Electrification businesses?
A: Orders in the Electrification segment doubled in the second quarter. Strong relationships and coordinated efforts are driving growth, especially in the U.S. and Europe. The business is becoming more balanced globally, with orders spread across North America, Europe, and the rest of the world.

Warranty Liabilities Reduction
Q: What's behind the reduction in warranty liabilities?
A: The reduction from $1.4 billion to $1.2 billion is due to the sale of part of the steam business to EDF, removing balances from the books. There are no significant changes in warranty accruals or patterns.