Fri, Apr. 10, 9:12 AM
Fri, Apr. 10, 7:30 AM
- GE's move to exit nearly all banking-type operations by 2018 and return a bundle of cash to shareholders reflects a growing level risk tolerance in favor of equity holders versus creditors, says Moody's, downgrading the company's unsecured debt rating to A1 from Aa3.
- "GE has been increasing cash payments to shareholders for several years but has not yet achieved a commensurate increase in operating earnings and cash flow," says Moody's Russell Solomon. While the company had previously promised restraint in further distributions to owners when it announced the Alstom purchase, today's announcement of $90B in payouts over the next three years is a "decisive indication that the company's financial policies have shifted to a more aggressive posture."
- The stock's higher by 4.5% premarket.
- Previously: GE sets plan to exit almost all of GE Capital; launches $50B buyback (April 10)
Fri, Apr. 10, 6:46 AM
- GE decides the time is right to get out the banking business and plans to sell nearly all GE Capital assets over the next 24 months, excepting the financing verticals relating to the company's industrial businesses - GE Capital Aviation Services, Energy Financial Services, and Healthcare Equipment Finance.
- As part of the plan and as leaked yesterday, GE agrees to the sale of nearly all of the assets of GE Capital Real Estate to Blackstone (NYSE:BX) and Wells Fargo (NYSE:WFC). GE also has LOIs from other buyers for another $4B in property. The total amount of the sales comes to about $26.5B.
- Under the restructuring, GE expects more than 90% of its earnings will be generated by industrial businesses by 2018 - that's up from 58% last year.
- For 2015, the company's industrial businesses remain on track to generate operating EPS of $1.10-$1.20.
- GE has identified the potential to return $90B to shareholders in dividends, buybacks, and the Synchrony Financial (NYSE:SYF) separation through 2018, and has authorized a new buyback program of up to $50B. The company expects to reduce share count to 8B-8.5B by 2018 (it's currently 10B).
- Shares +1.8% premarket.
- Source: Press release
Thu, Mar. 26, 7:18 AM
- Facing pressure from the drop in oil prices, General Electric (NYSE:GE) has increased the planned job cuts at its Lufkin oilfield equipment unit from 330 to 575.
- "As a result of increasingly challenging market conditions, we are announcing additional workforce reductions in our Lufkin business," said Kristin Schwarz, a GE Oil & Gas spokeswoman.
- GE bought oilfield pump maker Lufkin Industries for about $3.3B in 2013.
- GE -1% premarket
Oct. 17, 2014, 6:33 AM| Comment!
Aug. 7, 2014, 4:12 PM
- Dresser-Rand (DRC +8.6%) spiked into close following a Bloomberg report that it hired Morgan Stanley to prepare for possible takeover bids from companies including Siemens (OTCPK:SIEGY).
- While DRC isn’t actively pursuing a sale, the company is said to have retained Stanley after potential suitors expressed interest; the report says CEO Vincent Volpe Jr. may not even want a sale and is seeking defense advice from the banker.
- Siemens reportedly has been evaluating a bid for DRC since at least 2011; analysts also have mentioned GE, Cameron International (NYSE:CAM) and National Oilwell Varco (NYSE:NOV) as potential buyers in the past.
Aug. 6, 2014, 12:19 PM
- General Electric (GE +1.8%) is upgraded to Outperform from Market Perform with a $33 price target, up from $29, at Bernstein,which offers five reasons for favoring the stock.
- The firm sees growing evidence of portfolio and cultural transformation at GE resulting in accelerating cost reduction and the most Industrial focused mix in almost 25 years, as well as coming catalysts in the GE calendar through 2015 as backlog converts into the back half.
- Trading at 15.1x the next 12 months of earnings for its industrial business, GE is cheaper than most other industrials, including Danaher (NYSE:DHR) at 21.7x, 3M (NYSE:MMM) at 17.8x, and Emerson Electric (NYSE:EMR) at 16x, the firm says.
Jul. 22, 2014, 2:31 PM
- GE's (GE -0.2%) plan to build a new fuel-cell manufacturing facility in upstate New York to improve the production of fuel cells that run on natural gas isn't lifting its own shares, but it seems to be providing a big boost to fuel-cell stocks and other alternative energy names.
- FuelCell Energy (FCEL +14.5%) is soaring after Germany’s Federal Ministry for Economic Affairs and Energy awarded it and a joint venture partner €5M (~$6.7M) in a project to increase power density and the operating life of fuel cells, which would cut costs.
- Ocean Power Tech (OPTT +35.3%) is exploding higher today with no company specific news to account for the strength, and water management solutions provider GreenHunter Resources (GRH +13.8%) is up sharply on MLP news.
- Also rising: PLUG +6.9%, BLDP +5.8%, ZBB +4.8%, CBAK +2.3%, CPST +5.1%.
Jul. 16, 2014, 2:27 PM
- General Electric (GE +1.7%) is in talks with potential acquirers about selling its iconic home appliances business, which may fetch $1.5B-$2.5B, Bloomberg reports.
- GE is said to have been waiting to wrap up its acquisition of Alstom’s energy assets before pursuing options including an outright sale of the appliances business; with that deal signed, GE is actively talking to bidders.
- GE Home & Business Solutions, a division that includes appliances and lighting, generated more than $8B in sales last year, or 5.6% of GE’s total revenue.
Jun. 20, 2014, 11:45 AM
- The Alstom (ALSMY) board will be convened no later than Monday to review and resolve the updated offer from GE as well as the newest proposal from Siemens (SIEGY) and Mitsubishi Heavy Industries (MHVYF).
- Press release
- Previously: Siemens, Mitsubishi update Alstom bid
- Previously: CNBC: GE revised proposal creates three joint ventures
May. 21, 2014, 10:55 AM
- The U.S. Navy is in talks with other governments to boost by 50% the planned purchase of CH-53K helicopters built by United Technologies' (UTX +1.5%) Sikorsky unit.
- Negotiations to sell as many as 100 of the new heavy lift helicopters are well under way, according to the Navy's international program manager for heavy lift helicopters.
- The CH-53K has far more powerful engines than the current model can deliver; the engines, supplied by GE, allow the helicopter to carry 27K lbs. of cargo over a range of 110 nautical miles.
Apr. 17, 2014, 6:58 AM
- CEO Jeff Immelt: "GE is on track to achieve its goal of $1B or more in structural cost-out for the year. Industrial structural costs in the first quarter were down $254 million versus the prior-year period, driven by simplification initiatives and benefits from restructuring investments."
- "We are on track for our Retail Finance IPO and remain committed to a GE that has 70% of our earnings from the Industrial businesses."
- Excluding the 2013 NBCUniversal impact and other one-time charges, EPS gained 9% from a year ago. Industrial segment profits of $3.3B gained 12% Y/Y, with margins up 50 bps. Industrial segment revenues rose 8%.
- CC at 8:30 ET
- Press release, Q1 results
- Shares +0.7% premarket
Mar. 4, 2014, 2:10 PM
- CEO Jeff Immelt demonstrates his confidence in GE (GE +1.8%) by investing his entire 2013 cash bonus in GE shares, picking up ~105K shares yesterday for more than $2.64M and following a purchase of 40K shares last week for ~$1M.
- However, it's a relatively small portion of the 1.9M shares Immelt owns directly in GE; “considering he’s been the CEO for about a decade and been paid a lot of money, that’s not particularly impressive,” says Alan Johnson, head of a compensation consulting firm.
- Chief executives sometimes spend their own money on company stock as a way to shore up investor confidence; it's worked for at least a day, and GE investors hope for a repeat of Morgan Stanley CEO James Gorman's 2012 purchase of 100K shares that's netted him ~$1M in paper profit.
Dec. 17, 2013, 3:24 PM
- Broadwind Energy (BWEN +14.4%) is set to be a major beneficiary of Siemens $1B-plus power contract with MidAmerican Energy, supplying the towers for the 448 wind turbines that will equip five wind power projects in Iowa.
- The move by Warren Buffett’s utility company shows how a drop in equipment costs is making renewable energy more competitive with power from fossil fuels - a boost for suppliers including BWEN, Siemens (SI), GE and Vestas (VWDRY, VWSYF), and a threat to coal miners (KOL).
- MidAmerican expects to close some coal-powered plants in 2015 as the price of wind power (FAN) continues to slide, an exec says.
Oct. 21, 2013, 3:57 PM
- Shares of Clean Energy Fuels (CLNE +3.7%) are strong after the company said it had struck a deal with GE Capital (GE +2.4%) that will help companies finance purchases and leases of natural gas-fueled trucks.
- The agreement would allow truck fleet operators to obtain natural gas fueling contracts with CLNE and then apply for loans and leases from GE Capital CLNE would then would help offset the monthly cost of a natural gas truck to make it comparable to the cost of a diesel truck.
- Analysts say the CLNE-GE arrangement would effectively remove the upfront capital differential that still favors diesel.
Oct. 21, 2013, 10:32 AM
- "Even with shares hitting a five-year high, we see Q3's 19% surge in orders with record $229B backlog, 63% incrementals, and upside operating margins setting the stock up well," Citi's Deane Dray says, adding General Electric (GE +2.4%) to the firm's U.S. Focus List.
- Dray thinks there's room for multiple expansion as GE moves closer to its "target mix of mix of 70% industrial and 30% finance."
- See Dray's Q&A with management on the Q3 CC. (transcript)
GE vs. ETF Alternatives
General Electric Co is a diversified company with products & services that range from aircraft engines, power generation, oil & gas production equipment, & household appliances to medical imaging, business & consumer financing and industrial products.
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