Fri, Jun. 10, 12:07 PM
Tue, Jun. 7, 11:45 PM
- A high-ranking former Petrobras (NYSE:PBR) executive has told investigators that General Electric (NYSE:GE) and Alstom (OTCPK:ALSMY, OTCPK:AOMFF) paid bribes to win contracts more than a decade ago, in the latest expansion of Brazil’s huge Car Wash corruption scandal.
- Nestor Cervero, who once headed PBR’s international division, claims he received $700K in bribes from Alstom in exchange for choosing the company to supply four turbines for power plant projects, and that he had second-hand information that GE also bribed an official to win turbine contracts.
- Cervero, who was convicted last year of crimes including corruption and money laundering, says he obtained information from an associate that Alstom and GE each paid $10M in bribes to former senator and former PBR exec Delcidio Amaral in the late 1990s or early 2000s.
- GE says it is "not aware of any irregularity or wrongdoing in the contracts mentioned.’’
Tue, Jun. 7, 11:49 AM
- General Electric (GE +0.6%) is initiated with a Market Perform rating and $29 stock price target at Cowen, which says GE is unlikely to meet its implied organic EBIT targets for its key Industrial segments.
- "GE’s 5% organic industrial EBIT compound annual growth rate target is not a lay-up," Cowen analyst Gautam Khanna writes. “The 2016-18 estimated EBIT of GE’s four most dynamic segments (aviation, power, oil and gas, transportation) works out to 1%-3% [annual growth].”
- GE has come a long way in its attempt to become an industrial pure play but the stock effectively "has transitioned from an 'underowned,' non-consensus long to one where delivering on or exceeding estimates will be important to sustain the stock’s premium valuation," according to the analyst.
Tue, Jun. 7, 10:09 AM
- The head of General Electric's (GE +0.8%) power business sees more than $8B of sales opportunities around the globe facing possible delays as energy projects search for financing in a capital-constrained world.
- The stalled resumption of the U.S. Export-Import Bank is adding to the challenge as more customers are looking for funding, Steve Bolze declared, commenting that companies in the Middle East are increasingly looking at loans amid falling commodity prices.
- In addition to acquisitions, GE Power is looking to build out the services business by providing aftermarket work on equipment from competitors such as Siemens (OTCPK:SIEGY +1.5%) - a capability it recently gained from Alstom.
Mon, Jun. 6, 6:25 PM
- General Electric (NYSE:GE) says it is shedding another 360 oil service jobs in Lufkin, Tex., where it already has cut nearly 600 jobs since February 2015, as the company says it is "becoming clear that this will be a ‘lower for longer’ environment’” for oil prices.
- GE says it has started laying off more than half the employees working at three Lufkin facilities - a gear repair plant, power transmission site and a manufacturing facility - and the cuts will continue through August.
- GE acquired the plants when it purchased oil field service company Lufkin Industries for $3.3B in 2013.
Mon, Jun. 6, 5:23 PM
- General Electric (NYSE:GE) agrees to acquire an unspecified minority stake in Germany’s Sonnen to improve its presence in the fast-growing market for battery systems built to store solar power.
- GE Ventures is paying a “mid double-digit million-euro" amount for a stake in Sonnen, which started operations in 2010 and has become Europe’s largest maker of rechargeable energy storage units.
- The German company so far has sold 11K lithium-ion battery packs powered by solar energy, including 2,600 units worldwide during Q1, just enough to outpace sales of Tesla’s (NASDAQ:TSLA) wall-mounted Powerwall units.
- Sonnen claims average revenue growth of 174%/year during 2011-15; last year, 75% of its revenue was from its home market, but Germany’s share likely will fall to 50% this year amid a push into new markets including the U.S.
Mon, Jun. 6, 7:24 AM
- GE executives are reviewing whether annual updates to compensation are the best response to the achievements and needs of employees.
- The company may also ditch the longstanding and much-imitated system of rating staff on a five-point scale.
- According to spokeswoman Valerie Van den Keybus, decisions on both issues may come within the next several months.
Thu, Jun. 2, 7:12 PM
- GE Oil & Gas (NYSE:GE) secures a major deal with Statoil (NYSE:STO) to supply surface wellhead and christmas tree equipment for the giant John Sverdrup field in the North Sea; the value of the agreement is not disclosed.
- Under the new multi-year agreement, GE will manufacture, deliver and install its standardized surface wellhead and christmas tree systems at multiple wells that make up part of the field.
- GE, which has collaborated with STO on previous technology projects. says the latest deal opens opportunities for the Norwegian company to use GE's digital solutions to drive higher productivity and create "smarter” wells.
- Johan Sverdrup is one of the five biggest oil fields on the Norwegian continental shelf, with expected resources of 1.7B-3B boe.
Thu, Jun. 2, 7:45 AM
- May monthly performance was: +1.13%
- 52-week performance vs. the S&P 500 is: -3%
- No dividends were paid in May
- Top 10 Holdings as of 3/31/2016: JPMorgan Chase & Co (JPM): 2.92%, US Treasury Note 1.125%, Citigroup Inc (C): 2.72%, US Treasury Note 0.5%, General Electric Co (GE): 2.16%, Bank of America Corporation (BAC): 1.79%, Morgan Stanley (MS): 1.36%, Target Corp (TGT): 1.36%, US Treasury Note 1.625%, Carnival Corp (CCL): 1.29%
Wed, Jun. 1, 12:30 PM
- General Electric (GE -0.4%) says Welland, Ontario, will be the new home of its Waukesha, Wis., facility, following Congress’ failure last summer to reauthorize the Export-Import Bank.
- GE had signaled the move last September when it said it would stop making gas engines at the Waukesha plant and move 350 jobs to a new factory in a then-undetermined location in Canada to use that country’s export financing regime to pursue new business.
- Since GE announced the move, legislation was signed to reauthorize the Export-Import Bank for four more years.
Thu, May 26, 7:52 AM
- South Korea selects General Electric (NYSE:GE) to supply engines for its homegrown KF-X fighter jet project in a deal that could be worth an estimated $3.5B.
- GE was chosen over Eurojet Turbo GmbH, a European engine maker, to provide the F414-GE-400 engines, South Korea’s arms procurement agency says, with a final contract to be signed next month.
- The deal is part of South Korea’s KF-X weapons development program, led by a consortium of Korea Aerospace Industries and Lockheed Martin (NYSE:LMT).
Wed, May 25, 2:48 PM
- General Electric (GE +1.1%) is being sued by Alstom (OTCPK:ALSMY, OTCPK:AOMFF) for breach of contract related to the company's sale of its train signaling business to the French company last November.
- GE and Alstom have been unable to resolve disputes over whether the $800M purchase price should be adjusted, up or down, to account for working capital and net debt, according to a complaint filed yesterday in Manhattan's U.S. district court.
- Alstom says GE breached the contract by refusing to let the jointly designated independent accounting firm Deloitte resolve the disputes, instead launching an arbitration proceeding with the International Chamber of Commerce.
- The train signaling transaction was completed on the same day GE bought Alstom's energy business for an adjusted price of €9.7B ($10.8B).
Mon, May 23, 8:30 AM
- General Electric (NYSE:GE) announces a series of deals with Saudi Arabia worth more than $1.4B as part of the country's plan to reduce its dependence on crude oil.
- GE says it is teaming up with two partners, including Saudi Aramco, to build a $400M manufacturing facility for the energy and marine sector that is expected to create 2,000 new jobs in the kingdom.
- GE also plans to jointly invest $1B in several sectors such as water and aviation by 2017, alongside an entity comprising Saudi’s biggest petrochemicals company, its public investment fund and Aramco, with the possibility of an additional $2B worth of investments in the same sectors after 2017.
- GE Chairman/CEO Jeffrey Immelt says the project shows the company wants to expand its long-time presence in Saudi Arabia in "a new and visionary way."
- Now read GE: The 'overvalued' conglomerate that is a buy - the numbers prove it
Thu, May 19, 10:30 AM
- GE Healthcare (GE -1.1%) and Accenture (ACN -1%) are introducing a new offering to help improve medical claims processing and related cash flow for healthcare providers.
- Through the combination of analytics and consulting, GE Healthcare estimates the service could help healthcare providers to, on average, save between 25%-50% of their current costs to re-process denied claims.
Wed, May 18, 6:34 PM
- GE CEO Jeff Immelt says he is optimistic about H2 of this year, citing stronger orders for power turbines, an improving market for renewable energy products and better demand in health care.
- Immelt, who is counting on GE’s industrial businesses spanning energy, aviation and health care equipment to see it through a “slow-growth and volatile” global economy, says the company is on track to boost operating EPS to at least $2.00 by 2018 from $1.31 in 2015 and $1.45-$1.55 this year.
- Among the positive signs Immelt discussed today at a Florida investor conference is improving demand in the U.S. and China for GE health care equipment such as MRI machines, X-ray machines and CT scanners; he also says GE expects to get the bulk of its anticipated $19B in revenue from its power business in H2.
- Immelt also says GE is ~80% of the way through its exit of GE Capital, ahead of schedule; nevertheless, GE shares closed -0.3% in today's trading.
Mon, May 16, 8:35 AM
- John Flannery built a reputation as a prolific rainmaker in his previous role as head of business development at General Electric (NYSE:GE), logging more than $26B in deals, yet acquisitions are far from his mind as CEO of the conglomerate's healthcare unit.
- "When we look at the basic position of the company, we like the portfolio," Flannery said in an interview in Beijing. "So my mandate right now is to get the earnings growth going again, and there's a lot to just better managing the portfolio we have, align it more with customers and outcomes, for a better margin rate."
- GE Healthcare has committed to raising its profit margin by 50 bps this year with a goal of reaching 18% by 2018. Sales were down 4% and the profit margin fell by 40 bps to 16.3% last year.
General Electric Co. is a technology and financial services company that develops and manufactures products for the generation, transmission, distribution, control and utilization of electricity. Its products and services include aircraft engines, power generation, water processing, security... More
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