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. "