Tag Archives: General Electric Co

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GE Posts Small Gain in 2Q Profit, Sees Pickup in U.S. Ops

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By The Associated Press

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David Paul Morris/Bloomberg via Getty Images General Electric Co. CEO Jeffrey Immelt

By JONATHAN FAHEY

NEW YORK — General Electric posted a slight gain in net income in the second quarter and said its U.S. operations are picking up steam.

General Electric Co. (GE) said Friday that it earned $3.13 billion, up from $3.11 billion a year earlier. On a per-share basis, the company earned 30 cents, up from 29 cents. Revenue fell 4 percent, to $35.12 billion from $36.5 billion.

Adjusted to reflect earnings from continuing operations, GE earned 36 cents a share. That’s 2 cents less than adjusted earnings last year, but one cent better than analysts polled by FactSet had expected. GE shares rose 61 cents, or 2.6 percent, to $24.24 in trading before the market opened.

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GE, based in Fairfield, Conn., has a broad view of the global economy because it sells a wide variety of industrial equipment and appliances around the world, including jet engines, medical diagnostic equipment, locomotives, washing machines, natural gas-fired turbines, and oil and gas drilling equipment.

CEO Jeff Immelt said orders in the U.S. showed “strong growth,” an improvement from recent quarters when he expressed caution about the U.S. market. Immelt said emerging markets remained strong and that Europe has stabilized, but remained weak.

The company’s orders for new business rose $7 billion last quarter to a record $223 billion. Immelt said he expects profits to grow in the second half of the year.

GE is in the midst of transforming itself in to a company more focused on industrial businesses. It’s been shedding media and other non-industrial divisions and shrinking its banking division. Infrastructure orders rose 4 percent and profit margins for industrial segments rose 0.5 percent. GE Capital earnings fell 9 percent.

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

GE Profit Rises on Higher Jet-Engine Sales, Sale of NBC

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By Reuters

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Richard Drew/AP

By Ernest Scheyder

General Electric reported a first-quarter profit in line with Wall Street‘s expectations on Friday, as the conglomerate sold more jet engines and shed its stake in NBC Universal.

The world’s biggest maker of jet engines and electric turbines said it earned $3.53 billion, or 34 cents a share, compared with $3.03 billion, or 29 cents a share, a year earlier.

Excluding one-time items, the company earned 35 cents a share, matching analyst expectations, according to Thomson Reuters I/B/E/S.

Revenue rose slightly to $35 billion, beating the $34.51 billion analysts had expected.

GE‘s order backlog — a closely watched indicator of future sales — rose to $216 billion from $210 billion in the fourth quarter of 2012.

General Electric Co. (GE) shares fell slightly to $22.65 in premarket trading.

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From: http://www.dailyfinance.com/2013/04/19/ge-earnings/

Business, Finance, Occupation & Industry

GE Profit Rises on Improved Jet-Engine Sales

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By Reuters

Richard Drew/AP

By Ernest Scheyder

General Electric reported a first-quarter profit in line with Wall Street‘s expectations on Friday, as the conglomerate sold more jet engines and shed its stake in NBC Universal.

The world’s biggest maker of jet engines and electric turbines said it earned $3.53 billion, or 34 cents a share, compared with $3.03 billion, or 29 cents a share, a year earlier.

Excluding one-time items, the company earned 35 cents a share, matching analyst expectations, according to Thomson Reuters I/B/E/S.

Revenue rose slightly to $35 billion, beating the $34.51 billion analysts had expected.

GE‘s order backlog — a closely watched indicator of future sales — rose to $216 billion from $210 billion in the fourth quarter of 2012.

General Electric Co. (GE) shares fell slightly to $22.65 in premarket trading.

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From: http://www.dailyfinance.com/2013/04/19/ge-earnings/

Business, Finance, Occupation & Industry

Law Office of Brodsky & Smith, LLC Announces Investigation of Lufkin Industries, Inc.

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By Business Wirevia The Motley Fool

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Law Office of Brodsky & Smith, LLC Announces Investigation of Lufkin Industries, Inc.

BALA CYNWYD, Pa.–(BUSINESS WIRE)– Law office of Brodsky & Smith, LLC announces that it is investigating potential claims against the Board of Directors of Lufkin Industries, Inc. (“Lufkin” or the “Company”) (NAS: LUFK) relating to the proposed acquisition by General Electric Co. (“GE“).

Under the terms of the transaction, Lufkin shareholders will receive only $88.50 in cash for each share of Lufkin stock they own. The investigation concerns possible breaches of fiduciary duty and other violations of state law by the Board of Directors of Lufkin for not acting in the Company’s shareholders’ best interests in connection with the sale process to GE. The transaction may undervalue the Company and will result in a loss for many long term shareholders. For example Lufkin stock traded at $89.17 as recently as July 7, 2011 and $94.42 on April 19, 2011. In addition, Lufkin’s lift technologies are currently utilized in 94% of the oil-producing wells worldwide. This has resulted in Lufkin generating a record $1.3 billion in revenues in 2012, a 37% increase from the prior year.

If you own shares of Lufkin stock and wish to discuss the legal ramifications of the proposed transaction, or have any questions, you may e-mail or call the law office of Brodsky & Smith, LLC who will, without obligation or cost to you, attempt to answer your questions. You may contact Jason L. Brodsky, Esquire or Evan J. Smith, Esquire at Brodsky & Smith, LLC, Two Bala Plaza, Suite 602, Bala Cynwyd, PA 19004, by e-mail at investorrelations@brodsky-smith.com visiting http://brodsky-smith.com/562-lufk-lufkin-industries-inc.html, by calling toll free 877-LEGAL-90.

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Jason L. Brodsky, Esquire
Evan J. Smith, Esquire
877-LEGAL-90
investorrelations@brodsky-smith.com
http://brodsky-smith.com/562-lufk-lufkin-industries-inc.html

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Science & Technology

GE to Buy Lufkin Industries for $3.1B in Bid to Expand Energy Business

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By The Associated Press

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Allison Joyce/Getty Images Jeff Immelt, chairman and CEO of General Electric, speaks at an NFL news conference on March 11 in New York.

By JONATHAN FAHEY

NEW YORK — GE has agreed to buy the oilfield equipment maker Lufkin Industries for $3.1 billion, furthering an effort by GE to grow its oil and gas operations.

General Electric Co. (GE) said Monday that it would pay Lufkin shareholders $88.50 a share, a 38 percent premium over Lufkin’s closing price on Friday of $63.93.

The companies valued the deal at $3.3 billion, which includes $200 million in debt to be assumed by GE.

CEO Jeff Immelt is in the process of transforming GE from a sprawling conglomerate to one that is more tightly focused on providing services and equipment to industrial customers. The company has shed divisions such as NBC Universal and is shrinking its banking operations.

At the same time, Immelt indicated the company would use some of its enormous cash balance to buy mid-sized companies that fit well into what the company already does. GE makes aircraft engines, natural gas-fired turbines and generators, wind turbines, medical devices and locomotives.

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General Electric is putting particular focus on oil and gas, hoping to capitalize on the boom in extracting oil from difficult places, such as deep offshore, shale formations under several U.S. states, or older depleting oil fields. GE bought Wellstream, a maker of flexible pipes for gathering oil undersea, in 2010, and a division of the John Wood Group, a maker of pumps and control systems, in 2011.

“Wells in the future are going to be more and more technically challenging,” said Dan Heintzelman, who runs GE‘s oil and gas division, in an interview Monday.

Lufkin Industries Inc. (LUFK), based in Lufkin, Texas, makes pumping equipment that helps drillers extract more oil out of older fields or ones that need to be pumped because the oil and gas underground is not under enough pressure to be forced to the surface naturally. Heintzelman said 94 percent of wells will require some form of pumping, known in the industry as artificial lift.

GE‘s oil and gas related revenue has tripled since 2005, to $15 billion, accounting for 10 percent of the company’s $147 billion total revenue last year.

Christopher Glynn, an analyst at Oppenheimer, said the deal fits nicely into GE‘s strategy. He said as oil and gas continues to get more expensive to produce there will be ample opportunity for GE‘s growing oil and gas division to offer products and services to help keep those costs in check and make fields more productive.

Lufkin shares climbed $23.94, or 37.5 percent, to $87.87 in premarket trading. GE shares edged up 13 cents to $23.06 about 45 minutes ahead of …read more

Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Reality Check: The DJIA Highs Are Partly a Sham, Five Big Drags with Runner-Up Drags

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By 24/7 Wall St.

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The news of the Dow Jones Industrial Average hitting new highs this week is certainly good news. The problem is that the news comes with some serious caveats. We just featured that there are really only seven of the 30 DJIA component stocks that would be needed to take the DJIA up even higher to 15,000. The rest of the market could stay the same, but there are some serious DJIA laggards that have to be considered when you see that the market is back to all-time highs.

General Electric Co. (NYSE: GE) is perhaps the biggest disappointment of all DJIA stocks. After all, GE probably represents the broad economy more than any other single DJIA stock. It has business and personal finance, oil, power, energy, appliances, health care and many other aspects covering each sector of the economy. At $23.75, and with a market cap of about $245 billion, GE‘s stock is barely half of its share price from late 2007, and on the chart its stock would have to rise about 150% before taking out the 2001 highs back when valuations were silly at about 30 times earnings. GE has recovered well over 200% from its lows, but it its share price and market value are a fraction of the peak before the recession.

Bank of America Corp. (NYSE: BAC) may have been the best DJIA stock of 2012, but it is a shell of its former glory, if you count the price of the stock after the recession. In 2006 and in 2007 Bank of America was a $40 and $50 stock. Even after doubling from its lows, and even backing out a few dollars worth of dividends since then, has the stock at $11.84. It is very possible that Bank of America may not see its old highs for a generation or more, even if Warren Buffett and Berkshire Hathaway Inc. (NYSE: BRK-A) have a large stake. Its market cap is $128 billion, and it seems hard to imagine that shares would rise 200% to 300% further in any short period without hyperinflation.

Hewlett-Packard Co. (NYSE: HPQ) cannot win for losing, and it has been losing. This is not even due to the recession, but due to a change in technology demand toward Apple Inc. (NASDAQ: AAPL) and to smartphones and mobile computing. Mismanagement was another nail in the coffin, and even Meg Whitman has warned that the turnaround might not be seen fully until 2015 or so. The good news is that shares are actually back above $20, and that is approaching a double off of the lows of 2012. The bad news is that HP was basically a $50 stock back in 2010 and early 2011, when Mark Hurd was in charge. That company has been lost ever since Hurd was canned.

Alcoa Inc. (NYSE: AA) is another huge drag on the DJIA. Its stock is around $8.50 now and only has a …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Seven Stocks That Will Take the DJIA to 15,000 (IBM, CVX, MMM, MCD, UTX, CAT, XOM)

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By 24/7 Wall St.

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The Dow Jones Industrial Average hit a new high this week, and the new closing high is 14,253.77. We originally came up with a top price target for the DJIA of 14,590 for 2013 based upon our own DJIA analysis and methodology. We now expect that number to be surpassed, even if we have not officially raised the target. The reality is that by our take it will only require the top seven of the 30 DJIA stocks to perform this year for the DJIA to hit 15,000.

International Business Machines Corp. (NYSE: IBM), Chevron Corp. (NYSE: CVX), 3M Co. (NYSE: MMM), McDonald’s Corp. (NYSE: MCD), United Technologies Corp. (NYSE: UTX), Caterpillar Inc. (NYSE: CAT) and Exxon Mobil Corp. (NYSE: XOM) will likely be the seven stocks of the 30 DJIA components that lead the index to 15,000. At issue is that the DJIA is a price-weighted index that does not care about the market capitalization. These seven DJIA stocks account for 43% of the entire weighting of the 30 DJIA components.

For instance, General Electric Co. (NYSE: GE) has a $245 billion market cap, yet its $23.59 share price generates a weighing of only 1.27%. Then you have 3M Co. (NYSE: MMM) with a 5.63% weighting because its price is $104.45, and United Technologies Corp. (NYSE: UTX) has a 4.9% weighting in the DJIA because its price is $89.13. Combined, two these companies have a market cap of $159 billion. So GE is worth almost 150% of the market cap, but its weighting in the DJIA at 1.27% compares to the combined weighting of 10.73% for 3M and United Tech. Now you know how silly the DJIA can be as an index, even if investors are usually referring to the DJIA when they say “the market.”

If you took the bottom seven DJIA components, you barely get a 7% combined weighting in the DJIA. These stocks could all double in a static scenario, where the other stocks remain the same, and you would barely get close to the 15,000 mark.

A review at IndexArb.com shows just how much these weightings matter, with a cumulative weighting after each component:

1) IBM 11.13; 11.13
2) Chevron 6.35; 17.48
3) 3M 5.63; 23.11
4) McDonald’s 5.16; 28.27
5) United Technologies 4.90; 33.17
6) Caterpillar 4.86; 38.03
7) Exxon Mobil 4.83; 42.86

International Business Machines Corp. (NYSE: IBM) is at $206.53, against a 52-week range of $181.85 to $211.79. The consensus target price is $225.75, implying an expected gain of 9.3%. IBM‘s dividend yield is 1.7% but has been rising, and the company keeps buying back stock. Warren Buffett has bought a large stake that is likely to rise as well.

Chevron Corp. (NYSE: CVX) trades at $117.93, against a 52-week range of $95.73 to $118.53. Its consensus target price is $124.51, implying upside of 5.6%, and it has a 3.1% …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

China nears approval of $16 billion domestic jet-engine plan: Xinhua

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A woman walks past the Aviation Industry Corporation of China headquarters building in Beijing

SHANGHAI (Reuters) – China's cabinet may soon approve an aircraft engine development program that will require investment of at least 100 billion yuan ($16 billion), state-run Xinhua news agency quoted unidentified industry sources as saying. China is determined to reduce its dependency on foreign companies like Boeing Co , EADS-owned Airbus , General Electric Co and Rolls Royce Plc for the country's soaring demand for planes and engines. …

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Source: FULL ARTICLE at Yahoo Business

Business, Finance, Occupation & Industry

Short Interest Wanes in Some Big Stocks (GE, NOK, BAC, VZ, ANR, MCD, AAPL, RIMM, MSFT, DELL, GMCR, CSCO)

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By 24/7 Wall St.

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We have tracked the key short interest changes as of February 15 in the following large cap stocks: General Electric Co. (NYSE: GE), Nokia Corp. (NYSE: NOK), Bank of America Corp. (NYSE: BAC), Verizon Communications Inc. (NYSE: VZ), Alpha Natural Resources Inc. (NYSE: ANR), McDonald’s Corp. (NYSE: MCD), Apple Inc. (NASDAQ: AAPL), Research in Motion, Microsoft Corp. (NASDAQ: MSFT), Dell Inc. (NASDAQ: DELL), Green Mountain Coffee Roasters Inc. (NASDAQ: GMCR) and Cisco Systems Inc. (NASDAQ: CSCO).

General Electric Co. (NYSE: GE) short interest rose 6.4% to 77.96 million shares. About 0.7% of GE’s float is now short.

Nokia Corp. (NYSE: NOK) saw short interest fall by 2.7% to 330.97 million shares, about 8.8% of the company’s total float.

Bank of America Corp. (NYSE: BAC) short interest rise 10.3% to 166 million shares, which represents 1.5% of the company’s float.

Verizon Communications Inc. (NYSE: VZ) saw a 3.8% rise in short interest to 47.05 million shares, which represents about 1.6% of the firm’s float.

Alpha Natural Resources Inc. (NYSE: ANR) showed a rise of 3.6% in short interest, to 33.13 million shares, about 15.2% of Alpha’s float.

McDonald’s Corp. (NYSE: MCD) showed a rise of 12.5% in short interest, to 13.92 million shares, about 1.4% of the company’s float.

Apple Inc. (NASDAQ: AAPL) saw a short interest fall by 0.4% to 18.78 million shares, or 2% of the company’s float.

Research In Motion changed its name to BlackBerry (NASDAQ: BBRY) on January 30, and short interest for this period was reported under the old name and ticker symbol RIMM. It saw short interest rise by 5.4% to 136.51 million shares, or 27.6% of the total float.

Microsoft Corp. (NASDAQ: MSFT) posted a 4.4% rise in short interest, to 83.58 million shares, about 1.1% of Microsoft’s float.

Dell Inc. (NASDAQ: DELL) short interest fall by 30.1%, to 28.73 million shares or about 2% of the company’s float.

Green Mountain Coffee Roasters Inc. (NASDAQ: GMCR) saw short interest increase by 13.9% to 30.89 million shares or 25.4% of the company’s float.

Cisco Systems Inc. (NASDAQ: CSCO) saw short interest fall by 3% to 55.11 million shares or about 1% of the company’s float.

Short interest in Dell has declined dramatically again following the buyout offer from Michael Dell and his partners. The rise in BlackBerry’s share price has brought more short interest because few people really believe the new smartphones will make much of dent in the armor of Apple, Google Inc. (NASDAQ: GOOG) or Samsung. GE’s rise in short interest is likely due to investors’ belief that the stock is fully valued and prospects are dimming as the global economy continues its slow motion recovery.

Filed under: 24/7 Wall St. Wire, Large Cap Stocks, Short Interest Tagged: AAPL, ANR, BAC, CSCO, DELL, GE, GMCR, GOOG, MCD, MSFT, NOK, RIMM, VZ

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Source: FULL ARTICLE at DailyFinance