General Electric (NYSE:GE) stock was down nearly 3% as the company announced that four of its power turbines are having issues with their blades.
The Boston, Mass.-based company said on Thursday that four of its biggest power turbines in the U.S. had to shutter operations as they were experiencing an “oxidation issue.” They added that they project the problem will have a negative impact on more of the 51 units that it has shipped this year.
The GE machines are an integral part of the company’s electricity pants located all around the globe. Analysts are banking on the company’s new turbines, which are HA class turbines, to help restore the company’s power division, which has been misfiring due to lowering revenue and earnings.
Exelon (NYSE:EXC) first discovered the issue on the turbine blades of a natural gas-fueled turbine located in Texas. GE said that the issue was found a few weeks ago, pushing Exelon to shutter operations of one turbine, followed by the shutting down of three other units as a precaution.
Both GE and Exelon said that the problem could be restored sooner rather than later, although it is unclear when this will happen. It is also unclear how the oxidation took place.
GE said that it is currently working with its other customers to ameliorate the problem.
GE stock fell 2.94% on Thursday.