General Electric: The End of 'Dead Money'
The markets are down roughly half a percent today, but General Electric (GE) is up 1.36% at the moment. As shown in the chart below, GE has really done well in recent weeks. Below is a relative strength chart of General Electric compared to the S&P 500 over the last 10 years. As shown, GE underperformed the overall market for pretty much the entire 2000s decade. It underperformed during the 2003-2007 bull and also during the 2007-2009 bear. During the current bull market, however, GE has outperformed the S&P 500. There are lots of mutual funds and other investors out there that have owned this bellwether for years that really hope this continues. Is GE finally ready to lose the "dead money" label?
Tuesday, March 30, 2010
Monday, March 22, 2010
Maclean’s Interview: Jeffrey Immelt
Jeffrey Immelt is the chairman and CEO of General Electric, one of the world’s largest corporations, and a member of U.S. President Barack Obama’s Economic Recovery Advisory Board. Since the financial crisis he’s been an outspoken critic of corporate excess and failed leadership. But he has also faced criticism of his own from GE investors who’ve seen shares fall 60 per cent since he took over in 2001. Immelt spoke to Maclean’s during a visit to Vancouver for the Winter Olympics.
Q: In a speech at the West Point military academy in December, you said we’ve come through an era when business went from tough-mindedness, which is a good trait, to meanness and greed. What did you mean by that?
A: Over a period of time, not enough effort has been put forward to investing in the capability and long-term growth of the productive middle class of the United States. Less money has been invested in research and development and manufacturing, with more of a transition to financial services. When a country from 1980 to 2010 goes from being an export powerhouse to an unbelievably consumption-driven net importer, that’s not a good trend.
Q: Can it be reversed?
A: It’s going to take lots of spending on R & D, and a real dedication to making our workforce more productive again. Seven per cent of U.S. GDP is exports. In Germany, it’s 35 per cent. Germany’s not a low-cost country. Germany is not Mexico. And there’s no reason why the U.S. can’t have some kind of destiny that’s like that.
Red the Full Interview Here.
Q: In a speech at the West Point military academy in December, you said we’ve come through an era when business went from tough-mindedness, which is a good trait, to meanness and greed. What did you mean by that?
A: Over a period of time, not enough effort has been put forward to investing in the capability and long-term growth of the productive middle class of the United States. Less money has been invested in research and development and manufacturing, with more of a transition to financial services. When a country from 1980 to 2010 goes from being an export powerhouse to an unbelievably consumption-driven net importer, that’s not a good trend.
Q: Can it be reversed?
A: It’s going to take lots of spending on R & D, and a real dedication to making our workforce more productive again. Seven per cent of U.S. GDP is exports. In Germany, it’s 35 per cent. Germany’s not a low-cost country. Germany is not Mexico. And there’s no reason why the U.S. can’t have some kind of destiny that’s like that.
Red the Full Interview Here.
Saturday, March 20, 2010
Dividend, Stock Performance, Jeffery Immelt, "Buy" Rating, and 10%+ Gain
GE's Increased Dividend - Not Until 2011
Speaking at a Goldman Sachs investor conference yesterday, General Electric (GE) CFO Keith Sherin indicated that profits at the conglomerate will begin growing again in 2011. GE’s profits have been in decline since 2007 and Wall Street expects another decline this year.
Dividend investors also have reason to cheer as GE’s CFO also indicated that the company plans to begin growing their dividend again, but not until 2011.
Early in 2009, GE slashed their quarterly dividend by 68% just as the stock was hitting its lowest point. Prior to the dividend cut, GE had been a member of the elite Dividend Aristocrats – stocks that had increased their dividends for 25 consecutive years or more. In fact, the dividend cut was the first for the company since 1938.
With earnings expected to begin recovering in the second half of this year, many dividend investors were hoping that GE would hike their dividend in 2010.
While GE’s dividend yield is a rather average 2.3%, investors who dumped their shares when the company cut their dividend are surely kicking themselves now. Since cutting their dividend, GE stock has soared 115% and is up 21% in 2010 (second only to Boeing (BA) among Dow stocks).
Wall Street’s consensus estimates call for $1.00 EPS in 2010 for GE. With an annual dividend of $.40 per share, GE would have a dividend payout ratio of 40%. In 2006, GE’s dividend payout ratio was 46% and in 2007 it was 47%. With EPS expected to climb to $1.22 per share in 2011, a more modest 41% target dividend payout ratio would result in a dividend increase of 25% to $.50 per share. While 25% is a significant increase to their dividend payment, it may take such a bold move to win back dividend investors who are still smarting from last year’s huge dividend cut.
GE: Don't call it a comeback
Has Jeff Immelt finally made General Electric investors forget the legendary Jack Welch?
That's a stretch -- investors can no longer count on GE beating estimates and posting double-digit earnings growth in good times and bad.
But the current GE (GE, Fortune 500) CEO -- and the company's shareholders -- finally have a lot to smile about.
GE, which was the second-worst performer in the Dow last year, falling nearly 7%, has staged a remarkable turnaround. The stock is up 20% in 2010, the second-best Dow component behind Boeing (BA, Fortune 500).
Is the rally justified? Perhaps.
General Electric Is A Buy
After a decade of disaster, the past 12 months have finally given General Electric shareholders something to crow about. The industrial megalith has seen its shares rise 79% in that time, and recent momentum is highly encouraging for GE longs; GE rose 4.2% last week, making it the best performing stock on the Dow Jones industrial average.
This rebound, however, has been a long time coming. Over the past decade GE shares are down 61%, badly lagging the S&P 500 Index, which is down 19% in that span. Along the way GE did the sacrosanct and cut its dividend last February in order to hang on to its AAA credit rating. Despite slashing the dividend by 68%, Standard & Poor's ultimately downgraded GE debt to AA+.
General Electric: Up 10% Since Last Thursday
General Electric (GE) has had a pretty good couple of days.
Since last Thursday, the stock has gained more than 10%, which is a big move for GE. The move has propelled GE to its highest level since late 2008, and it has made a big impact on the S&P 500 given its size.
General Electric's high in 2007 was $42.15, and the stock is still 57% below that level even after its recent gains.
Speaking at a Goldman Sachs investor conference yesterday, General Electric (GE) CFO Keith Sherin indicated that profits at the conglomerate will begin growing again in 2011. GE’s profits have been in decline since 2007 and Wall Street expects another decline this year.
Dividend investors also have reason to cheer as GE’s CFO also indicated that the company plans to begin growing their dividend again, but not until 2011.
Early in 2009, GE slashed their quarterly dividend by 68% just as the stock was hitting its lowest point. Prior to the dividend cut, GE had been a member of the elite Dividend Aristocrats – stocks that had increased their dividends for 25 consecutive years or more. In fact, the dividend cut was the first for the company since 1938.
With earnings expected to begin recovering in the second half of this year, many dividend investors were hoping that GE would hike their dividend in 2010.
While GE’s dividend yield is a rather average 2.3%, investors who dumped their shares when the company cut their dividend are surely kicking themselves now. Since cutting their dividend, GE stock has soared 115% and is up 21% in 2010 (second only to Boeing (BA) among Dow stocks).
Wall Street’s consensus estimates call for $1.00 EPS in 2010 for GE. With an annual dividend of $.40 per share, GE would have a dividend payout ratio of 40%. In 2006, GE’s dividend payout ratio was 46% and in 2007 it was 47%. With EPS expected to climb to $1.22 per share in 2011, a more modest 41% target dividend payout ratio would result in a dividend increase of 25% to $.50 per share. While 25% is a significant increase to their dividend payment, it may take such a bold move to win back dividend investors who are still smarting from last year’s huge dividend cut.
GE: Don't call it a comeback
Has Jeff Immelt finally made General Electric investors forget the legendary Jack Welch?
That's a stretch -- investors can no longer count on GE beating estimates and posting double-digit earnings growth in good times and bad.
But the current GE (GE, Fortune 500) CEO -- and the company's shareholders -- finally have a lot to smile about.
GE, which was the second-worst performer in the Dow last year, falling nearly 7%, has staged a remarkable turnaround. The stock is up 20% in 2010, the second-best Dow component behind Boeing (BA, Fortune 500).
Is the rally justified? Perhaps.
General Electric Is A Buy
After a decade of disaster, the past 12 months have finally given General Electric shareholders something to crow about. The industrial megalith has seen its shares rise 79% in that time, and recent momentum is highly encouraging for GE longs; GE rose 4.2% last week, making it the best performing stock on the Dow Jones industrial average.
This rebound, however, has been a long time coming. Over the past decade GE shares are down 61%, badly lagging the S&P 500 Index, which is down 19% in that span. Along the way GE did the sacrosanct and cut its dividend last February in order to hang on to its AAA credit rating. Despite slashing the dividend by 68%, Standard & Poor's ultimately downgraded GE debt to AA+.
General Electric: Up 10% Since Last Thursday
General Electric (GE) has had a pretty good couple of days.
Since last Thursday, the stock has gained more than 10%, which is a big move for GE. The move has propelled GE to its highest level since late 2008, and it has made a big impact on the S&P 500 given its size.
General Electric's high in 2007 was $42.15, and the stock is still 57% below that level even after its recent gains.
Monday, March 15, 2010
The Globe and Mail: Is Jeffrey Immelt bad for GE?
The Globe and Mail: Is Jeffrey Immelt bad for GE?
I would hardly want to go on the record as being an apologist for bloated executive compensation, especially when said compensation is out of line with shareholder value. But it seems to me that Brett Arends’ takedown of Jeffrey Immelt misses the point.
In an article on MarketWatch, Mr. Arends noted that Mr. Immelt took the helm of General Electric Co. (GE-N17.290.251.47%) nine years ago (hat tip: Abnormal Returns). Since then, GE’s share price has fallen to about $16 (U.S.) from $40. Even after factoring in dividends (which were slashed, by the way) shareholders are still down about 40 per cent. Factor in inflation, and they are down about 50 per cent.
For his troubles, Mr. Immelt has been compensated handsomely – and that’s the part that gets under Mr. Arends’ skin. He writes: “Since succeeding Jack Welch in 2001, Immelt has been paid a total of $28.2-million in salary and another $28.6-million in cash bonuses, for total payments of $56.8-million. That’s over nine years, and in addition to all his stock- and option-grant entitlements. It doesn’t end there. Along with all his cash payments, Immelt also has accumulated a remarkable pension fund worth $32-million. That would be enough to provide, say, a 60-year-old retiree with a lifetime income of $192,000 a month.”
It’s not a pretty assessment, and investors may easily conclude that General Electric is a stock to avoid. But what Mr. Arends fails to point out is that Mr. Immelt inherited a troubled stock market (following the dot-com crash) and a wobbling global economy (in 2007) in which to operate. Without him, would GE have fared considerably better?
It probably isn't fair to measure Mr. Immelt’s value to shareholders using GE’s share price as a yardstick. Even Warren Buffett would agree it may not be the best approach. In his latest letter to shareholders, Mr. Buffett actually brought up Mr. Immelt’s name as an example of why he doesn’t like to use changes in Berkshire Hathaway’s share price as a way to sum up the short-term success of the company (or its management, presumably). He writes:
“Year-to-year market prices can be extraordinarily erratic. Even evaluations covering as long as a decade can be greatly distorted by foolishly high or low prices at the beginning or end of the measurement period. Steve Ballmer, of Microsoft, and Jeff Immelt, of GE, can tell you about that problem, suffering as they do from the nosebleed prices at which their stocks traded when they were handed the managerial baton.”
Globe Investor
I would hardly want to go on the record as being an apologist for bloated executive compensation, especially when said compensation is out of line with shareholder value. But it seems to me that Brett Arends’ takedown of Jeffrey Immelt misses the point.
In an article on MarketWatch, Mr. Arends noted that Mr. Immelt took the helm of General Electric Co. (GE-N17.290.251.47%) nine years ago (hat tip: Abnormal Returns). Since then, GE’s share price has fallen to about $16 (U.S.) from $40. Even after factoring in dividends (which were slashed, by the way) shareholders are still down about 40 per cent. Factor in inflation, and they are down about 50 per cent.
For his troubles, Mr. Immelt has been compensated handsomely – and that’s the part that gets under Mr. Arends’ skin. He writes: “Since succeeding Jack Welch in 2001, Immelt has been paid a total of $28.2-million in salary and another $28.6-million in cash bonuses, for total payments of $56.8-million. That’s over nine years, and in addition to all his stock- and option-grant entitlements. It doesn’t end there. Along with all his cash payments, Immelt also has accumulated a remarkable pension fund worth $32-million. That would be enough to provide, say, a 60-year-old retiree with a lifetime income of $192,000 a month.”
It’s not a pretty assessment, and investors may easily conclude that General Electric is a stock to avoid. But what Mr. Arends fails to point out is that Mr. Immelt inherited a troubled stock market (following the dot-com crash) and a wobbling global economy (in 2007) in which to operate. Without him, would GE have fared considerably better?
It probably isn't fair to measure Mr. Immelt’s value to shareholders using GE’s share price as a yardstick. Even Warren Buffett would agree it may not be the best approach. In his latest letter to shareholders, Mr. Buffett actually brought up Mr. Immelt’s name as an example of why he doesn’t like to use changes in Berkshire Hathaway’s share price as a way to sum up the short-term success of the company (or its management, presumably). He writes:
“Year-to-year market prices can be extraordinarily erratic. Even evaluations covering as long as a decade can be greatly distorted by foolishly high or low prices at the beginning or end of the measurement period. Steve Ballmer, of Microsoft, and Jeff Immelt, of GE, can tell you about that problem, suffering as they do from the nosebleed prices at which their stocks traded when they were handed the managerial baton.”
Globe Investor
Immelt’s Letter to Shareholders
Immelt’s Letter to Shareholders Outlines GE’s Plans for American Renewal
Jeff Immelt, Chairman and CEO of General Electric, recently released his annual letter to shareholders in which he outlined GE’s strategy for job growth in America.
“GE wants to help lead an American growth renewal,” said Immelt. “We are investing more in technology than at any time in our history. We are rebuilding manufacturing capability. We are selling our products in every corner of the world. We are one of the country’s biggest exporters, with $18 billion in export-related revenue. We are financing small and medium-sized companies and working with them to grow their businesses.”
http://www.ge.com/ar2009/letter.html
Jeff Immelt, Chairman and CEO of General Electric, recently released his annual letter to shareholders in which he outlined GE’s strategy for job growth in America.
“GE wants to help lead an American growth renewal,” said Immelt. “We are investing more in technology than at any time in our history. We are rebuilding manufacturing capability. We are selling our products in every corner of the world. We are one of the country’s biggest exporters, with $18 billion in export-related revenue. We are financing small and medium-sized companies and working with them to grow their businesses.”
http://www.ge.com/ar2009/letter.html
MarketWatch: GE has been an investor disaster under Jeff Immelt
GE has been an investor disaster under Jeff Immelt
Commentary: CEO spends $200,000 on jets, $36,000 for car lease last year
When things go well, the top dogs of major companies rack up hundreds of millions of dollars, even billions, on their stock allotments and options.
It's always justified on the grounds that they've created lots of shareholder value. But what happens when things go badly?
For one example, take a look at General Electric Co., one of America's biggest and most important companies. It just revealed its latest annual glimpse inside the executive swag bag.
By any measure of shareholder value, GE has been a disaster under Jeffrey Immelt. Investors haven't made a nickel since he took the helm as chairman nine years ago. In fact, they've lost tens of billions of dollars.
The stock, which was $40 and change when Immelt took over, has collapsed to around $16. Even if you include dividends, investors are still down about 40%. In real post-inflation terms, stockholders have lost about half their money.
MarketWatch
Commentary: CEO spends $200,000 on jets, $36,000 for car lease last year
When things go well, the top dogs of major companies rack up hundreds of millions of dollars, even billions, on their stock allotments and options.
It's always justified on the grounds that they've created lots of shareholder value. But what happens when things go badly?
For one example, take a look at General Electric Co., one of America's biggest and most important companies. It just revealed its latest annual glimpse inside the executive swag bag.
By any measure of shareholder value, GE has been a disaster under Jeffrey Immelt. Investors haven't made a nickel since he took the helm as chairman nine years ago. In fact, they've lost tens of billions of dollars.
The stock, which was $40 and change when Immelt took over, has collapsed to around $16. Even if you include dividends, investors are still down about 40%. In real post-inflation terms, stockholders have lost about half their money.
MarketWatch
Immelt forgoes bonus and says jobs are being 'added back'
General Electric CEO Immelt Says No to Bonus, Again
The chairman and chief executive of General Electric, Jeff Immelt, who has railed against the “meanness and greed” of Wall Street, has refused to accept a bonus for the second year in a row. Immelt, who has reigned as head of the world’s largest company for a decade, declined to take a bonus to set an example, as GE begins to recover from the recession. But don’t feel too bad for Immelt, his total compensation package for 2009 exceeded $9 million.
According to GE’s proxy statement, Immelt did not accept an end of the year bonus, despite “delivering a strong financial performance” during a severe recession.
GE CEO Immelt forgoes bonus in 2009
Jeffrey Immelt, the chairman of U.S. conglomerate General Electric Co., declined a cash bonus in 2009 for the second year in a row, according to a regulatory filing by GE.
Immelt, 54, made $3.3 million in salary for 2009. The company revealed in a proxy filing that other executives at the firm took home more than $10 million in 2009 bonuses.
GE’s top-line revenues declined 14 percent in 2009 to $156.8 billion. Earnings from operations dropped 38 percent to $11.2 billion. GE is a component of the Dow Jones Industrial Average.
GE Has ‘Added Back’ Employees Recently, Immelt Says
General Electric Co. is hiring back workers as the U.S. economy has begun to expand and growth in emerging markets has continued unabated, Chief Executive Officer Jeffrey Immelt said.
“In the last few months we have added back employees,” Immelt said during a presentation with U.S. Export-Import Bank Chairman Fred Hochberg in Washington today.
Global demand for health-care services and locomotives will drive growth at the Fairfield, Connecticut-based company, the world’s biggest maker of jet engines, medical-imaging equipment and locomotives, Immelt said. About 50 percent of that demand will be from outside the U.S., Immelt said.
President Barack Obama has said he wants to double U.S. exports in the next five years. Immelt said that goal is “as important as anything he has done.”
Brazil has been the most surprising economy in its growth in recent years, and now GE is looking to determine if Indonesia or another emerging market will be the surprise in the next few years.
GE, which gets more than half its revenue internationally, can be instrumental in helping the U.S. remain a leading exporter and had about $18 billion in export-related sales last year alone, Immelt said earlier this month in an annual letter to shareholders.
Immelt urged passage of pending U.S. free trade agreements, saying efforts in Congress to stall the deals sends the wrong message to economic partners overseas.
The chairman and chief executive of General Electric, Jeff Immelt, who has railed against the “meanness and greed” of Wall Street, has refused to accept a bonus for the second year in a row. Immelt, who has reigned as head of the world’s largest company for a decade, declined to take a bonus to set an example, as GE begins to recover from the recession. But don’t feel too bad for Immelt, his total compensation package for 2009 exceeded $9 million.
According to GE’s proxy statement, Immelt did not accept an end of the year bonus, despite “delivering a strong financial performance” during a severe recession.
GE CEO Immelt forgoes bonus in 2009
Jeffrey Immelt, the chairman of U.S. conglomerate General Electric Co., declined a cash bonus in 2009 for the second year in a row, according to a regulatory filing by GE.
Immelt, 54, made $3.3 million in salary for 2009. The company revealed in a proxy filing that other executives at the firm took home more than $10 million in 2009 bonuses.
GE’s top-line revenues declined 14 percent in 2009 to $156.8 billion. Earnings from operations dropped 38 percent to $11.2 billion. GE is a component of the Dow Jones Industrial Average.
GE Has ‘Added Back’ Employees Recently, Immelt Says
General Electric Co. is hiring back workers as the U.S. economy has begun to expand and growth in emerging markets has continued unabated, Chief Executive Officer Jeffrey Immelt said.
“In the last few months we have added back employees,” Immelt said during a presentation with U.S. Export-Import Bank Chairman Fred Hochberg in Washington today.
Global demand for health-care services and locomotives will drive growth at the Fairfield, Connecticut-based company, the world’s biggest maker of jet engines, medical-imaging equipment and locomotives, Immelt said. About 50 percent of that demand will be from outside the U.S., Immelt said.
President Barack Obama has said he wants to double U.S. exports in the next five years. Immelt said that goal is “as important as anything he has done.”
Brazil has been the most surprising economy in its growth in recent years, and now GE is looking to determine if Indonesia or another emerging market will be the surprise in the next few years.
GE, which gets more than half its revenue internationally, can be instrumental in helping the U.S. remain a leading exporter and had about $18 billion in export-related sales last year alone, Immelt said earlier this month in an annual letter to shareholders.
Immelt urged passage of pending U.S. free trade agreements, saying efforts in Congress to stall the deals sends the wrong message to economic partners overseas.
Wind and Aerospace Growth
GE unit invests $65M in wind farm
"Ecomagination" is alive and growing at General Electric Co. as the Fairfield-based giant continues its investment in renewable energy.
GE Energy Financial Services in Stamford has taken a $65 million stake in a 152-megawatt wind farm near Woodward, Okla., and it is pursuing an energy purchase agreement for a proposed hydroelectric plant in British Columbia, Canada.
CPV Renewable Energy Co., an affiliate of Competitive Power Ventures Inc., has started construction of the CPV Keenan II wind farm, with the goal of finishing it by December. The project has secured a 20-year power purchase agreement with Oklahoma Gas & Electric Co., and is expected to generate enough electricity to power about 45,000 average Oklahoma homes.
According to U.S. Environmental Protection methodology, it will avoid about 413,000 tons a year of greenhouse gas emissions -- the equivalent of taking nearly 72,000 cars off the road -- by generating electricity with wind power rather than fossil fuels.
GE project would boost Ohio aerospace growth
General Electric Co.’s pending decision about whether to build a research and testing center to advance the production of electrical power systems for military and civilian aircraft would boost Ohio’s effort to establish itself as a national hub for aerospace research and development, officials said.
GE has said that southwest Ohio is a leading candidate for the site, if the company’s leadership gives the go-ahead for establishing the center at a current GE operation. That would include GE Aviation’s jet engine plant in the Cincinnati suburb of Evendale and its GE Electrical Power Systems business in Vandalia.
Ohio has offered GE a $7.6 million incentive grant to support the project.
Company sites in Grand Rapids, Mich.; Erlanger, Ky., and Cheltenham, England, also are possibilities.
"Ecomagination" is alive and growing at General Electric Co. as the Fairfield-based giant continues its investment in renewable energy.
GE Energy Financial Services in Stamford has taken a $65 million stake in a 152-megawatt wind farm near Woodward, Okla., and it is pursuing an energy purchase agreement for a proposed hydroelectric plant in British Columbia, Canada.
CPV Renewable Energy Co., an affiliate of Competitive Power Ventures Inc., has started construction of the CPV Keenan II wind farm, with the goal of finishing it by December. The project has secured a 20-year power purchase agreement with Oklahoma Gas & Electric Co., and is expected to generate enough electricity to power about 45,000 average Oklahoma homes.
According to U.S. Environmental Protection methodology, it will avoid about 413,000 tons a year of greenhouse gas emissions -- the equivalent of taking nearly 72,000 cars off the road -- by generating electricity with wind power rather than fossil fuels.
GE project would boost Ohio aerospace growth
General Electric Co.’s pending decision about whether to build a research and testing center to advance the production of electrical power systems for military and civilian aircraft would boost Ohio’s effort to establish itself as a national hub for aerospace research and development, officials said.
GE has said that southwest Ohio is a leading candidate for the site, if the company’s leadership gives the go-ahead for establishing the center at a current GE operation. That would include GE Aviation’s jet engine plant in the Cincinnati suburb of Evendale and its GE Electrical Power Systems business in Vandalia.
Ohio has offered GE a $7.6 million incentive grant to support the project.
Company sites in Grand Rapids, Mich.; Erlanger, Ky., and Cheltenham, England, also are possibilities.
Sunday, March 7, 2010
MarketWatch: General Electric's Immelt forgoes bonus again & Watch List
General Electric's Immelt forgoes bonus again
General Electric Co. Chairman Jeff Immelt has opted not to take an annual cash bonus in 2009 for the second straight year as he aimed to steer the industrial conglomerate out of a deep recession.
However, other top executives at GE took home bonuses totaling more than $10 million.
In 2009, GE's earnings from continuing operations were $11.2 billion, down 38% from in 2008. Revenue dropped 14% to $156.8 billion. GE shares, one of the 30 Dow Jones Industrial Average components, fell 6.6% in 2009, compared to the roughly 19% gain for the Dow.
Total compensation for Immelt in 2009 was $9.885 million, up from $9.28 million in 2008, mostly due to the increase in the value of his pension and deferred compensation, GE explained Friday in its proxy statement.
The 54-year old Immelt earned a salary of $3.3 million and performance stock units valued at $1.79 million. His salary hasn't changed since 2005.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
General Electric plans to ramp up college hiring efforts this year. "We have decided to double our on-campus hiring in the 2010 recruitment cycle versus the previous year," GE CEO Jeff Immelt said in his annual letter to shareholders released Friday. Immelt didn't cite how many students GE hired last year or the number of graduates GE plans to offer jobs to in 2010.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
MarketWatch
General Electric Co. Chairman Jeff Immelt has opted not to take an annual cash bonus in 2009 for the second straight year as he aimed to steer the industrial conglomerate out of a deep recession.
However, other top executives at GE took home bonuses totaling more than $10 million.
In 2009, GE's earnings from continuing operations were $11.2 billion, down 38% from in 2008. Revenue dropped 14% to $156.8 billion. GE shares, one of the 30 Dow Jones Industrial Average components, fell 6.6% in 2009, compared to the roughly 19% gain for the Dow.
Total compensation for Immelt in 2009 was $9.885 million, up from $9.28 million in 2008, mostly due to the increase in the value of his pension and deferred compensation, GE explained Friday in its proxy statement.
The 54-year old Immelt earned a salary of $3.3 million and performance stock units valued at $1.79 million. His salary hasn't changed since 2005.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
General Electric plans to ramp up college hiring efforts this year. "We have decided to double our on-campus hiring in the 2010 recruitment cycle versus the previous year," GE CEO Jeff Immelt said in his annual letter to shareholders released Friday. Immelt didn't cite how many students GE hired last year or the number of graduates GE plans to offer jobs to in 2010.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
MarketWatch
Green Energy, Clean Energy, Coal-Beautification, Tobacco-Free, and Nuclear Plants in Poland
General Electric (GE) Stock – Will Green Energy Make It Pop?
There’s no question that General Electric (NYSE:GE) is counting on green energy to help boost revenues. General Electric Co. CEO Jeffrey Immelt spoke to the ARPA-E Energy Innovation Conference in Washington and was clear about what he felt the country needed to do.
He indicated he was afraid that America would be non competitive in the alternative energy markets if action wasn’t taken quickly.
“Right now we have no certainty around an energy future,” Immelt said. “Let’s not take this growth industry and give it to every other country in the world but the U.S.”
Immelt went on to highlight ways he thought the government could help sell green energy to the masses and to protect American industry.
GE CEO Immelt: U.S. lags in clean energy; federal smart grid oversight needed
On the global stage, the United States is facing its stiffest competition to date in the race for clean energy, said General Electric CEO Jeffrey Immelt at a conference in Maryland.
Speaking at the ARPA-E Summit in National Harbor, Md., Immelt said energy demand is redirecting toward the developing world, and unclear policies and low levels of research and development spending could hinder U.S. progress moving forward — despite new technologies in the pipeline.
“Unless we have a broad perspective on job creation, innovation, and technology growth, we are going to fall behind as a country,” Immelt said, as reported by SmartPlanet sister site CNET. “We need growth as a country and globally we play in a much more competitive arena than any other time in our lifetimes.”
Immelt said current trends indicate that Asian countries will demand energy products at a higher rate than the U.S. or Europe — drawing businesses, innovation and supply chain strength to those countries.
As an example, Immelt said the number of passenger cars sold in China and India will be more than twice the number sold in the U.S. by 2020.
GE Is on a Coal-Beautification Mission
General Electric is "changing the perception of coal energy in America." It's clean -- and sexy. Just watch this TV ad. But wait there's more. Here's the problem: you've got lots of coal in the ground that you want to use to generate electricity and profits. But coal has a reputation for being dirty and causing tons of pollution. So what do you do?
General Electric to go tobacco-free in 2011: Work sites to be tobacco-free
A year ago, General Electric Co. promised financial incentives to U.S. employees who kicked the smoking habit.
Now, the company is going a step further, launching a new policy that would make all the company's work sites tobacco-free by this time in 2011.
There are some other differences between then and now.
For one thing, the Connecticut-based company, one of the world's largest, is addressing only at-work behavior.
Employees won't be asked to sign a tobacco-free pledge that extends beyond the workplace, said Stephan Koller, a spokesman for GE Transportation, based in Lawrence Park Township.
But they will be asked to refrain from using tobacco of all kinds on company property.
General Electric to go tobacco-free in 2011: Work sites to be tobacco-free
GE Hitachi To Build Nuclear Plants In Poland - Update
GE Hitachi Nuclear Energy, and Polish power company Polska Grupa Energetyczna SA, Friday said they have signed a new agreement to collaborate on Poland's initiative to build next-generation commercial nuclear power plants. GE Hitachi Nuclear Energy is a nuclear alliance formed by General Electric Co. (GE: News ) and Hitachi Ltd. (HIT: News ).
Through this alliance, Poland plans to build two nuclear power plants that would help the country diversify its energy production, which currently relies heavily on coal-based technologies.
There’s no question that General Electric (NYSE:GE) is counting on green energy to help boost revenues. General Electric Co. CEO Jeffrey Immelt spoke to the ARPA-E Energy Innovation Conference in Washington and was clear about what he felt the country needed to do.
He indicated he was afraid that America would be non competitive in the alternative energy markets if action wasn’t taken quickly.
“Right now we have no certainty around an energy future,” Immelt said. “Let’s not take this growth industry and give it to every other country in the world but the U.S.”
Immelt went on to highlight ways he thought the government could help sell green energy to the masses and to protect American industry.
GE CEO Immelt: U.S. lags in clean energy; federal smart grid oversight needed
On the global stage, the United States is facing its stiffest competition to date in the race for clean energy, said General Electric CEO Jeffrey Immelt at a conference in Maryland.
Speaking at the ARPA-E Summit in National Harbor, Md., Immelt said energy demand is redirecting toward the developing world, and unclear policies and low levels of research and development spending could hinder U.S. progress moving forward — despite new technologies in the pipeline.
“Unless we have a broad perspective on job creation, innovation, and technology growth, we are going to fall behind as a country,” Immelt said, as reported by SmartPlanet sister site CNET. “We need growth as a country and globally we play in a much more competitive arena than any other time in our lifetimes.”
Immelt said current trends indicate that Asian countries will demand energy products at a higher rate than the U.S. or Europe — drawing businesses, innovation and supply chain strength to those countries.
As an example, Immelt said the number of passenger cars sold in China and India will be more than twice the number sold in the U.S. by 2020.
GE Is on a Coal-Beautification Mission
General Electric is "changing the perception of coal energy in America." It's clean -- and sexy. Just watch this TV ad. But wait there's more. Here's the problem: you've got lots of coal in the ground that you want to use to generate electricity and profits. But coal has a reputation for being dirty and causing tons of pollution. So what do you do?
General Electric to go tobacco-free in 2011: Work sites to be tobacco-free
A year ago, General Electric Co. promised financial incentives to U.S. employees who kicked the smoking habit.
Now, the company is going a step further, launching a new policy that would make all the company's work sites tobacco-free by this time in 2011.
There are some other differences between then and now.
For one thing, the Connecticut-based company, one of the world's largest, is addressing only at-work behavior.
Employees won't be asked to sign a tobacco-free pledge that extends beyond the workplace, said Stephan Koller, a spokesman for GE Transportation, based in Lawrence Park Township.
But they will be asked to refrain from using tobacco of all kinds on company property.
General Electric to go tobacco-free in 2011: Work sites to be tobacco-free
GE Hitachi To Build Nuclear Plants In Poland - Update
GE Hitachi Nuclear Energy, and Polish power company Polska Grupa Energetyczna SA, Friday said they have signed a new agreement to collaborate on Poland's initiative to build next-generation commercial nuclear power plants. GE Hitachi Nuclear Energy is a nuclear alliance formed by General Electric Co. (GE: News ) and Hitachi Ltd. (HIT: News ).
Through this alliance, Poland plans to build two nuclear power plants that would help the country diversify its energy production, which currently relies heavily on coal-based technologies.
Tuesday, March 2, 2010
United Technologies Acquires GE Security and Energy Policy
United Technologies buys GE security operations
HARTFORD, Conn. — United Technologies Corp. says it has completed its $1.82 billion purchase of General Electric Co.'s fire detection and electronic security business.
CEO Louis Chenevert said Monday the acquisition strengthens United Technologies' fire and security business.
United Technologies, parent of jet engine maker Pratt & Whitney, Otis elevator and Sikorsky Aircraft, announced the deal in November.
GE’s Immelt Says U.S. Needs Strong Actions on Energy
The U.S. government must take “strong actions” to stay competitive with countries such as China and Japan in a race to build wind turbines and nuclear reactors, General Electric Co. chief Jeffrey Immelt said.
“Right now we have no certainty around an energy future,” Immelt, GE’s chief executive officer, said today in a speech to the ARPA-E Energy Innovation Conference in Washington’s Maryland suburbs. “Let’s not take this growth industry and give it to every other country in the world but the U.S.”
Asia makes more than half the world’s wind and solar energy equipment, and is gaining ground as U.S. factories lose out to cheaper labor and higher demand for clean energy. China for the first time topped the U.S. in wind-turbine manufacturing and installations last year, the Brussels-based Global Wind Energy Council said yesterday in a report.
Immelt has helped lead the U.S. Climate Action Partnership, or USCAP, a coalition of businesses and environmental groups calling for Congress to put a cap on carbon-dioxide emissions. The group says legislation is needed so companies such as utilities and their suppliers know how to proceed with long-term investments. A measure passed by the House last year has stalled in the Senate.
HARTFORD, Conn. — United Technologies Corp. says it has completed its $1.82 billion purchase of General Electric Co.'s fire detection and electronic security business.
CEO Louis Chenevert said Monday the acquisition strengthens United Technologies' fire and security business.
United Technologies, parent of jet engine maker Pratt & Whitney, Otis elevator and Sikorsky Aircraft, announced the deal in November.
GE’s Immelt Says U.S. Needs Strong Actions on Energy
The U.S. government must take “strong actions” to stay competitive with countries such as China and Japan in a race to build wind turbines and nuclear reactors, General Electric Co. chief Jeffrey Immelt said.
“Right now we have no certainty around an energy future,” Immelt, GE’s chief executive officer, said today in a speech to the ARPA-E Energy Innovation Conference in Washington’s Maryland suburbs. “Let’s not take this growth industry and give it to every other country in the world but the U.S.”
Asia makes more than half the world’s wind and solar energy equipment, and is gaining ground as U.S. factories lose out to cheaper labor and higher demand for clean energy. China for the first time topped the U.S. in wind-turbine manufacturing and installations last year, the Brussels-based Global Wind Energy Council said yesterday in a report.
Immelt has helped lead the U.S. Climate Action Partnership, or USCAP, a coalition of businesses and environmental groups calling for Congress to put a cap on carbon-dioxide emissions. The group says legislation is needed so companies such as utilities and their suppliers know how to proceed with long-term investments. A measure passed by the House last year has stalled in the Senate.
NBC's Olympic Gold
Olympic sponsors strike marketing gold with tie-ins to green Games
Hockey's Great One clutched a recyclable torch as he rode in a hybrid pickup en route to ignite the natural gas Olympic flame on an iconic voyage that shone an international spotlight on the creators of those clean energy innovations.
Wayne Gretzky's Olympic moment was a veritable showcase of products from high-profile corporate sponsors seeking to tie their brands to Vancouver's promise to host the greenest Games in history, including GM Canada, maker of the Silverado hybrid, and Bombardier Inc. (TSX:BBD.B), which manufactured the mostly recyclable torch.
Environmental sustainability is a well-publicized theme for the Vancouver Olympic organizing committee, which has pressured corporate sponsors, from Bell Canada (TSX:BCE) to Canadian Pacific Railway (TSX:CP), to reduce their environmental footprints.
NBC’s Last Day of Olympics Draws 19.8 Million Viewers
NBC’s final night of Olympics coverage attracted 19.8 million viewers, carrying the network to victory in the Nielsen ratings, according to preliminary data.
The broadcaster, part of General Electric Co., also drew 5.3 percent of the 18-to-49-year-old viewers advertisers target to the final night in Vancouver, according to Nielsen Co. data supplied by the networks today, the most for prime time.
Hockey's Great One clutched a recyclable torch as he rode in a hybrid pickup en route to ignite the natural gas Olympic flame on an iconic voyage that shone an international spotlight on the creators of those clean energy innovations.
Wayne Gretzky's Olympic moment was a veritable showcase of products from high-profile corporate sponsors seeking to tie their brands to Vancouver's promise to host the greenest Games in history, including GM Canada, maker of the Silverado hybrid, and Bombardier Inc. (TSX:BBD.B), which manufactured the mostly recyclable torch.
Environmental sustainability is a well-publicized theme for the Vancouver Olympic organizing committee, which has pressured corporate sponsors, from Bell Canada (TSX:BCE) to Canadian Pacific Railway (TSX:CP), to reduce their environmental footprints.
NBC’s Last Day of Olympics Draws 19.8 Million Viewers
NBC’s final night of Olympics coverage attracted 19.8 million viewers, carrying the network to victory in the Nielsen ratings, according to preliminary data.
The broadcaster, part of General Electric Co., also drew 5.3 percent of the 18-to-49-year-old viewers advertisers target to the final night in Vancouver, according to Nielsen Co. data supplied by the networks today, the most for prime time.
Warren Buffet and Berkshire Hathaway's Investments, 2009
Berkshire Hathaway $1B+ Investment Holdings At Yearend 2009
As is his practice in his annual letter to shareholders, Berkshire Hathaway chairman Warren Buffett listed the company's common stock investments that at yearend, in this case Dec. 31, 2009, had a market value of more than $1 billion. Click the more link to see the list.
In addition, Berkshire Hathaway owns positions in non-traded securities of Dow Chemical, General Electric, Goldman Sachs, Swiss Re and Wrigley with an aggregate cost of $21.1 billion and a carrying value of $26.0 billion. It also 76,777,029 shares (22.5%) of BNSF at yearend, which were then carried at $85.78 per share, but which have subsequently been melded into Berkshire's purchase of the entire company.
The Oracle's Tips for the Rest of Us
Every few years, critics say Warren Buffett has lost his touch. He's too old and too old-fashioned, they claim. He doesn't get it anymore. This time he's wrong.
It happened during the dotcom bubble, when Mr. Buffett was mocked for refusing to join the party. And it happened again last year. As the Dow tumbled below 7,000, Mr. Buffett came under fire for having jumped into the crisis too early and too boldly, making big bets on Goldman Sachs and General Electric during the fall of 2008, and urging the public to plunge into shares.
Now it's time for those critics to sit down for their traditional three course meal: humble pie, their own words and crow.
On Saturday, Mr. Buffett's Berkshire Hathaway reported that net earnings rocketed 61% last year to $5,193 per share, while book value jumped 20% to a record high. Berkshire's Class A shares, which slumped to nearly $70,000 last year, have rebounded to $120,000.
Those bets on GE and Goldman? They've made billions so far. And anyone who took Mr. Buffett's advice and invested in the stock market in October 2008, even through a simple index fund, is up about 25%.
As is his practice in his annual letter to shareholders, Berkshire Hathaway chairman Warren Buffett listed the company's common stock investments that at yearend, in this case Dec. 31, 2009, had a market value of more than $1 billion. Click the more link to see the list.
In addition, Berkshire Hathaway owns positions in non-traded securities of Dow Chemical, General Electric, Goldman Sachs, Swiss Re and Wrigley with an aggregate cost of $21.1 billion and a carrying value of $26.0 billion. It also 76,777,029 shares (22.5%) of BNSF at yearend, which were then carried at $85.78 per share, but which have subsequently been melded into Berkshire's purchase of the entire company.
The Oracle's Tips for the Rest of Us
Every few years, critics say Warren Buffett has lost his touch. He's too old and too old-fashioned, they claim. He doesn't get it anymore. This time he's wrong.
It happened during the dotcom bubble, when Mr. Buffett was mocked for refusing to join the party. And it happened again last year. As the Dow tumbled below 7,000, Mr. Buffett came under fire for having jumped into the crisis too early and too boldly, making big bets on Goldman Sachs and General Electric during the fall of 2008, and urging the public to plunge into shares.
Now it's time for those critics to sit down for their traditional three course meal: humble pie, their own words and crow.
On Saturday, Mr. Buffett's Berkshire Hathaway reported that net earnings rocketed 61% last year to $5,193 per share, while book value jumped 20% to a record high. Berkshire's Class A shares, which slumped to nearly $70,000 last year, have rebounded to $120,000.
Those bets on GE and Goldman? They've made billions so far. And anyone who took Mr. Buffett's advice and invested in the stock market in October 2008, even through a simple index fund, is up about 25%.
