GE finds itself on wrong side of Obama's defense agenda
For more than a year, General Electric has been notable among U.S. corporations for enjoying generally friendly relations with the White House. The company was broadly supportive of President Obama's stimulus efforts, and its chairman, Jeffrey Immelt, sits on a White House economic advisory board.
But now the White House and GE are clashing publicly over a fighter-jet engine -- built by the company and its British partner, Rolls-Royce -- that has been on the Pentagon's chopping block for years, only to be rescued repeatedly by Congress. The issue is poised to come to a head Tuesday during a House subcommittee markup for the annual defense appropriations bill, which Obama has threatened to veto if it has the $485 million for the engine.
GE -- whose financing arm received billions of dollars in federal bailout funds -- has launched a furious lobbying and media effort in recent months aimed at securing funding for the engine, which would serve as an alternate for Lockheed Martin's F-35 Joint Strike Fighter. Pratt & Whitney, the Pentagon's choice for developing an F-35 engine, has fired back with a lobbying and advertising campaign of its own.
Showing posts with label Jeffery Immelt. Show all posts
Showing posts with label Jeffery Immelt. Show all posts
Wednesday, July 28, 2010
Sunday, April 18, 2010
BusinessWeek: Can GE Still Manage?
CEO Jeff Immelt says his company trains the best business leaders in the world. Yet they haven't saved him from a hellish decade that cut GE's value in half.
A couple of Fridays each month, Jeffrey R. Immelt hosts a sleepover. The chairman and CEO of General Electric (GE) invites one of the 185 officers of his company—and only one—to his home in New Canaan, Conn., for a leisurely meal. After a few drinks, some laughs, a plate of pasta, and a wide-ranging discussion of what's going on in the world, the two executives part. Immelt, 54, stays home while his guest heads to lodging at GE headquarters in nearby Fairfield. When they reconvene the next morning, things get personal. "We spend Saturday morning just talking about their careers," says Immelt. "Who they are, how they fit, how I see their strengths and weaknesses—stuff like that." One recent guest, Steve Bolze, president and CEO of GE Power & Water, calls it "a really nice discussion, a chance to get to know each other better."
What does it say about Immelt that after almost a decade in the top job he's looking for ways to bond with his team? "The personal connection is something I may have taken for granted before that I don't want to ever take for granted again," he says. "Sometimes there's a tendency to say, 'Well, this is an officer of the company. They've been here 20 years. They can figure it out. Do they really need me to draw them a diagram?' But you need to make the time."
The sleepovers are part of a major rethink by Immelt, a personal reevaluation of how GE equips its people to lead. The reappraisal was triggered by the global financial crisis, which shook the $157 billion-a-year conglomerate, almost destroyed its financial services unit, and sent its share price from $29 in the days before Lehman Brothers crashed to below $6. (It has since recovered to around $19, leaving GE's market cap, at roughly $200 billion, about half what it once was.) That led Immelt to become what he describes as "self-reflective on steroids" and to ask a hard question: "Was there one of my top 150 people who was thinking, 'You know, Jeff, commercial real estate shouldn't be so goddamn big,' but didn't have a way to say [it]?"
Immelt intends to spend this year exploring new ideas, which he describes as "wallowing in it," to decide how GE should shape and measure its leaders. He has solicited management suggestions from a broad range of organizations—from Google (GOOG) to China's Communist Party—and sent 30 of his top people to more than 100 companies worldwide. He's holding monthly dinners with 10 executives and an external "thought leader" to debate leadership. He launched a pilot program to bring in personal coaches for high-potential talent, a practice that GE once reserved mainly for those in need of remedial work. To increase exposure to the world beyond GE, Immelt is even reconsidering the age-old rule that employees can't sit on corporate boards. "I think about it all the time," he says. "You have to be willing to change when it makes sense."
READ THE FULL STORY HERE.
A couple of Fridays each month, Jeffrey R. Immelt hosts a sleepover. The chairman and CEO of General Electric (GE) invites one of the 185 officers of his company—and only one—to his home in New Canaan, Conn., for a leisurely meal. After a few drinks, some laughs, a plate of pasta, and a wide-ranging discussion of what's going on in the world, the two executives part. Immelt, 54, stays home while his guest heads to lodging at GE headquarters in nearby Fairfield. When they reconvene the next morning, things get personal. "We spend Saturday morning just talking about their careers," says Immelt. "Who they are, how they fit, how I see their strengths and weaknesses—stuff like that." One recent guest, Steve Bolze, president and CEO of GE Power & Water, calls it "a really nice discussion, a chance to get to know each other better."
What does it say about Immelt that after almost a decade in the top job he's looking for ways to bond with his team? "The personal connection is something I may have taken for granted before that I don't want to ever take for granted again," he says. "Sometimes there's a tendency to say, 'Well, this is an officer of the company. They've been here 20 years. They can figure it out. Do they really need me to draw them a diagram?' But you need to make the time."
The sleepovers are part of a major rethink by Immelt, a personal reevaluation of how GE equips its people to lead. The reappraisal was triggered by the global financial crisis, which shook the $157 billion-a-year conglomerate, almost destroyed its financial services unit, and sent its share price from $29 in the days before Lehman Brothers crashed to below $6. (It has since recovered to around $19, leaving GE's market cap, at roughly $200 billion, about half what it once was.) That led Immelt to become what he describes as "self-reflective on steroids" and to ask a hard question: "Was there one of my top 150 people who was thinking, 'You know, Jeff, commercial real estate shouldn't be so goddamn big,' but didn't have a way to say [it]?"
Immelt intends to spend this year exploring new ideas, which he describes as "wallowing in it," to decide how GE should shape and measure its leaders. He has solicited management suggestions from a broad range of organizations—from Google (GOOG) to China's Communist Party—and sent 30 of his top people to more than 100 companies worldwide. He's holding monthly dinners with 10 executives and an external "thought leader" to debate leadership. He launched a pilot program to bring in personal coaches for high-potential talent, a practice that GE once reserved mainly for those in need of remedial work. To increase exposure to the world beyond GE, Immelt is even reconsidering the age-old rule that employees can't sit on corporate boards. "I think about it all the time," he says. "You have to be willing to change when it makes sense."
READ THE FULL STORY HERE.
Recovery, Earnings, and Stock Performance
GE Investors Look Past Finance Rut for Stabilization
General Electric Co. investors say profit declines may be easing, allowing them to look beyond the slump for signs that Chief Executive Officer Jeffrey Immelt is stabilizing the finance unit and driving industrial orders. GE, the world’s biggest maker of jet engines, power-plant turbines and medical-imaging equipment, may say tomorrow that profit from continuing operations fell to 16 cents a share from 26 cents a year earlier, analysts estimate. Earnings may improve enough later in the year that GE can raise its dividend in 2011, the Fairfield, Connecticut-based company said in March. The prospect has lifted GE to the highest since the midst of the U.S. financial crisis 18 months ago. “They may actually surprise on the upside with real revenue growth here, and the comparisons are kind of easy,” said Peter Sorrentino, a senior portfolio manager at Huntington Asset Advisors in Cincinnati who helps handle $12.8 billion, including more than 2.1 million GE shares as of March 31. “Any little surprises on, say like energy systems, that’s the kind of thing that people are going to latch onto and say, ‘Hey, the big kids are back in town.’” GE may be poised to show investors steadily improving profit margins, cash generation and order growth amid a buffer of free cash that the company has predicted to be about $25 billion at the end of 2010, said Steven Winoker, an analyst with Sanford C. Bernstein & Co.GE may see one more quarter of declining earnings before profits start to climb against year-earlier comparisons in the second half, analysts surveyed by Bloomberg estimate.
Shares set to trim gains; eyes on GE
European shares were seen falling on Friday, trimming lofty gains made over the past two sessions, as investors awaited quarterly results from global conglomerate General Electric (GE.N) and fresh insight on the outlook for company profits.
Income Falls, but G.E. Tops Forecasts
General Electric, reassured by signs that a global recovery was gaining momentum, said on Friday that its profit for the year might exceed expectations. General Electric's aviation plant in Durham, N.C. G.E.'s chief , Jeffrey R. Immelt, said he saw “encouraging economic signs.” “We feel pretty good about where we’re positioned as the recovery continues,” the chief executive, Jeffrey R. Immelt, told investors in a conference call about first-quarter results. He said G.E. might undertake additional cost-cutting as it refocused the business on its industrial components, which include production of items like wind turbines and jet engines. G.E., based in Fairfield, Conn., said it was encouraged by indications that the tide of loan losses at its financial unit, GE Capital, was beginning to reverse. Credit card delinquencies have fallen, the company said, and losses on mortgages in Britain are easing.
General Electric Co. investors say profit declines may be easing, allowing them to look beyond the slump for signs that Chief Executive Officer Jeffrey Immelt is stabilizing the finance unit and driving industrial orders. GE, the world’s biggest maker of jet engines, power-plant turbines and medical-imaging equipment, may say tomorrow that profit from continuing operations fell to 16 cents a share from 26 cents a year earlier, analysts estimate. Earnings may improve enough later in the year that GE can raise its dividend in 2011, the Fairfield, Connecticut-based company said in March. The prospect has lifted GE to the highest since the midst of the U.S. financial crisis 18 months ago. “They may actually surprise on the upside with real revenue growth here, and the comparisons are kind of easy,” said Peter Sorrentino, a senior portfolio manager at Huntington Asset Advisors in Cincinnati who helps handle $12.8 billion, including more than 2.1 million GE shares as of March 31. “Any little surprises on, say like energy systems, that’s the kind of thing that people are going to latch onto and say, ‘Hey, the big kids are back in town.’” GE may be poised to show investors steadily improving profit margins, cash generation and order growth amid a buffer of free cash that the company has predicted to be about $25 billion at the end of 2010, said Steven Winoker, an analyst with Sanford C. Bernstein & Co.GE may see one more quarter of declining earnings before profits start to climb against year-earlier comparisons in the second half, analysts surveyed by Bloomberg estimate.
Shares set to trim gains; eyes on GE
European shares were seen falling on Friday, trimming lofty gains made over the past two sessions, as investors awaited quarterly results from global conglomerate General Electric (GE.N) and fresh insight on the outlook for company profits.
Income Falls, but G.E. Tops Forecasts
General Electric, reassured by signs that a global recovery was gaining momentum, said on Friday that its profit for the year might exceed expectations. General Electric's aviation plant in Durham, N.C. G.E.'s chief , Jeffrey R. Immelt, said he saw “encouraging economic signs.” “We feel pretty good about where we’re positioned as the recovery continues,” the chief executive, Jeffrey R. Immelt, told investors in a conference call about first-quarter results. He said G.E. might undertake additional cost-cutting as it refocused the business on its industrial components, which include production of items like wind turbines and jet engines. G.E., based in Fairfield, Conn., said it was encouraged by indications that the tide of loan losses at its financial unit, GE Capital, was beginning to reverse. Credit card delinquencies have fallen, the company said, and losses on mortgages in Britain are easing.
LED Revenue Growth, NBC Earnings, and GE's recovery
GE sees growth in LED revenue
“LEDs are probably the largest growth area” for the lighting industry, Michael Petras, chief executive officer of GE's lighting business, said in an interview in Frankfurt Monday. LEDs make up “less than 10 percent” of GE Lighting's global sales, and that proportion probably will rise to one-third by 2015, with the overall market doubling “in the next couple of years,” he said.
GE Lighting's sales will be “flat or slightly positive” this year, Petras said. They fell to $2.5 billion in 2009 from $2.8 billion in 2008, according to presentations on GE's Web site. GE is the world's third- largest lighting company, after Royal Philips Electronics and Siemens's Osram. Its Appliances & Lighting division is headquartered in Louisville.
NBC Universal earnings drag down parent General Electric's results
NBC Universal is relieved that its winter financial wipeout is finally over.
Parent company General Electric Co. on Friday released its first-quarter results, which included, as expected, substantial losses generated by NBC's coverage of the 2010 Winter Olympics in Vancouver, Canada.
Although GE posted a 32% drop in earnings, the company nonetheless beat analysts' expectations.
GE Chairman Jeffrey Immelt said there were signs the economy was improving, along with the industrial giant's profit margins -- except for a couple of problem divisions.
"NBC, because of the Olympics, was a drag on margins overall," Immelt said.
NBC Universal's operating profit of $199 million was down 49% compared with the first quarter of 2009. Revenue of $4.32 billion for the quarter was up 23% compared with the year-earlier period, but it was about flat when ad sales for the Olympics were excluded from the results.
GE executives warned investors several months ago that NBC would lose as much as $250 million on its coverage of the Vancouver Olympic Games -- but it did not turn out as bad as first feared. NBC ended up losing $223 million on the Olympics, GE said, thanks to better-than-anticipated advertising.
General Electric Rehab On Track
General Electric's road to recovery may be rocky, but it's on the road nonetheless as it beat Wall Street's views on first quarter profit.
Among the most important morsels withing GE's report was the update on the progress of GE's financial arm GE Capital Services. The good news is GE Chief Executive Jeffrey Immelt said losses appear to have peaked, but that's not to say the problems will be over anytime soon. GE Capital was able to report earnings of $607 million in the first quarter, but commercial real estate continues to be "challenging". Thankfully, losses, delinquencies and non-earning assets have also declined during the first quarter.
“LEDs are probably the largest growth area” for the lighting industry, Michael Petras, chief executive officer of GE's lighting business, said in an interview in Frankfurt Monday. LEDs make up “less than 10 percent” of GE Lighting's global sales, and that proportion probably will rise to one-third by 2015, with the overall market doubling “in the next couple of years,” he said.
GE Lighting's sales will be “flat or slightly positive” this year, Petras said. They fell to $2.5 billion in 2009 from $2.8 billion in 2008, according to presentations on GE's Web site. GE is the world's third- largest lighting company, after Royal Philips Electronics and Siemens's Osram. Its Appliances & Lighting division is headquartered in Louisville.
NBC Universal earnings drag down parent General Electric's results
NBC Universal is relieved that its winter financial wipeout is finally over.
Parent company General Electric Co. on Friday released its first-quarter results, which included, as expected, substantial losses generated by NBC's coverage of the 2010 Winter Olympics in Vancouver, Canada.
Although GE posted a 32% drop in earnings, the company nonetheless beat analysts' expectations.
GE Chairman Jeffrey Immelt said there were signs the economy was improving, along with the industrial giant's profit margins -- except for a couple of problem divisions.
"NBC, because of the Olympics, was a drag on margins overall," Immelt said.
NBC Universal's operating profit of $199 million was down 49% compared with the first quarter of 2009. Revenue of $4.32 billion for the quarter was up 23% compared with the year-earlier period, but it was about flat when ad sales for the Olympics were excluded from the results.
GE executives warned investors several months ago that NBC would lose as much as $250 million on its coverage of the Vancouver Olympic Games -- but it did not turn out as bad as first feared. NBC ended up losing $223 million on the Olympics, GE said, thanks to better-than-anticipated advertising.
General Electric Rehab On Track
General Electric's road to recovery may be rocky, but it's on the road nonetheless as it beat Wall Street's views on first quarter profit.
Among the most important morsels withing GE's report was the update on the progress of GE's financial arm GE Capital Services. The good news is GE Chief Executive Jeffrey Immelt said losses appear to have peaked, but that's not to say the problems will be over anytime soon. GE Capital was able to report earnings of $607 million in the first quarter, but commercial real estate continues to be "challenging". Thankfully, losses, delinquencies and non-earning assets have also declined during the first quarter.
Monday, April 12, 2010
Jeffrey Immelt to Give Commencement Address at Hamilton College
General Electric CEO Jeffrey Immelt to Give Commencement Address
Jeffrey Immelt P'10, chairman and chief executive officer of General Electric Company (GE), will deliver the Commencement address to the Class of 2010 on Sunday, May 23. Immelt has had a tumultuous, but successful stint at GE thus far. His first years were difficult – he took command four days before the 9/11 terrorist attack in 2001, and he led GE through the recession at the turn of the century and the Enron collapse (when the public became increasingly skeptical of CEOs of large corporations). Immelt has now been CEO at GE for over eight years, and financial magazine Barron's has named him one of the "World's Best CEOs" three times. He also serves on the board of the New York Federal Reserve Bank.
Jeffrey Immelt P'10, chairman and chief executive officer of General Electric Company (GE), will deliver the Commencement address to the Class of 2010 on Sunday, May 23. Immelt has had a tumultuous, but successful stint at GE thus far. His first years were difficult – he took command four days before the 9/11 terrorist attack in 2001, and he led GE through the recession at the turn of the century and the Enron collapse (when the public became increasingly skeptical of CEOs of large corporations). Immelt has now been CEO at GE for over eight years, and financial magazine Barron's has named him one of the "World's Best CEOs" three times. He also serves on the board of the New York Federal Reserve Bank.
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.
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.
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 $1.82 billion purchase of General Electric Co.'s fire detection and electronic security business.
CEO Louis Chenevert said Monday the acquisition strengthens United Technologies' fire and security business.
United Technologies, parent of jet engine maker Pratt & Whitney, Otis elevator and Sikorsky Aircraft, announced the deal in November.
GE’s Immelt Says U.S. Needs Strong Actions on Energy
The U.S. government must take “strong actions” to stay competitive with countries such as China and Japan in a race to build wind turbines and nuclear reactors, General Electric Co. chief Jeffrey Immelt said.
“Right now we have no certainty around an energy future,” Immelt, GE’s chief executive officer, said today in a speech to the ARPA-E Energy Innovation Conference in Washington’s Maryland suburbs. “Let’s not take this growth industry and give it to every other country in the world but the U.S.”
Asia makes more than half the world’s wind and solar energy equipment, and is gaining ground as U.S. factories lose out to cheaper labor and higher demand for clean energy. China for the first time topped the U.S. in wind-turbine manufacturing and installations last year, the Brussels-based Global Wind Energy Council said yesterday in a report.
Immelt has helped lead the U.S. Climate Action Partnership, or USCAP, a coalition of businesses and environmental groups calling for Congress to put a cap on carbon-dioxide emissions. The group says legislation is needed so companies such as utilities and their suppliers know how to proceed with long-term investments. A measure passed by the House last year has stalled in the Senate.
Saturday, February 27, 2010
Immelt, Paulson, Financial Crisis, Unionized Workers Job Cuts
Immelt, Paulson Talk Financial Crisis ($)
General Electric Co. CEO Jeff Immelt interviewed Henry Paulson about the former Treasury Secretary's new book on the financial crisis at an event last week. But the two didn't address potentially controversial conversations Mr. Paulson's book says the two had at the height of the crisis.
The discussion at the 92nd Street Y in Manhattan Thursday evening was framed around Mr. Paulson's new book, "On the Brink: Inside the Race to Stop the Collapse of the Global Financial System," and gave Mr. Paulson a chance to present his view of the crisis. Mr. Paulson defended his actions, which he believes ...
GE's unionized workers bore brunt of cuts, WSJ blog says
A report at the Wall Street Journal's web site today says unionized and service workers bore the brunt of job reductions at General Electric Co. last year. According to GE's annual report filed with the Securities and Exchange Commission on Friday, the overall workforce fell 5.9 percent to 304,000 at the end of Deember from 323,000 a year earlier. But the company's unionized manufacturing and service workforces fell 19 percent to 15,600 from 19,250 in December 2008, according to the MarketBeat blog at wsj.com.
General Electric Co. CEO Jeff Immelt interviewed Henry Paulson about the former Treasury Secretary's new book on the financial crisis at an event last week. But the two didn't address potentially controversial conversations Mr. Paulson's book says the two had at the height of the crisis.
The discussion at the 92nd Street Y in Manhattan Thursday evening was framed around Mr. Paulson's new book, "On the Brink: Inside the Race to Stop the Collapse of the Global Financial System," and gave Mr. Paulson a chance to present his view of the crisis. Mr. Paulson defended his actions, which he believes ...
GE's unionized workers bore brunt of cuts, WSJ blog says
A report at the Wall Street Journal's web site today says unionized and service workers bore the brunt of job reductions at General Electric Co. last year. According to GE's annual report filed with the Securities and Exchange Commission on Friday, the overall workforce fell 5.9 percent to 304,000 at the end of Deember from 323,000 a year earlier. But the company's unionized manufacturing and service workforces fell 19 percent to 15,600 from 19,250 in December 2008, according to the MarketBeat blog at wsj.com.
Monday, February 22, 2010
2009 Layoffs, Iraq Energy, GE Executive Bonuses, Debt, Appliances at the Olympics
GE's Work Force Fell by 6 Percent in 2009
General Electric's overall work force fell by about 6 percent worldwide in 2009 as it struggled to deal with the effects of the deep recession and financial crisis, according to a company regulatory filing Friday.
GE's annual report shows the industrial and financial heavyweight reduced its overall employee head count by about 19,000 jobs to 304,000 workers. It's the second year in a row that jobs have fallen at one of the world's largest companies after several years of job growth earlier in the decade.
Excluding 16,000 jobs that came on the company's rolls last year when it took a majority stake in a Central American bank, GE's work force fell by 35,000. That was much larger than the 4,000 drop in jobs in 2008, the year that GE first began to feel the effects of the global downturn.
Worst hit was the conglomerate's GE Capital lending unit, which saw profits crumble last year as credit dried up and its losses on loans gone bad soared in areas like commercial real estate and credit cards. GE Capital shed 25 percent of its work force to finish 2009 at about 55,000 employees, part of a company plan to significantly shrink the size of the division.
GE expands energy footprint in Iraq
General Electric Co. announced it would join its partners in Iraqi Kurdistan to advance $200 million in power generation projects.
GE through its partners at Mass Global Investment Co. advanced the development of six gas-turbine power units for plants in Dahuk and Sulaymaniyah.
The projects are intended to meet the growing energy demand in the northern Kurdish provinces, the Kurdistan Regional Government in Iraq announced.
GE sets bonuses targets for 1,000 executives
General Electric said Friday it will pay bonuses to about 1,000 executives, including CEO Jeffrey Immelt, if the conglomerate hits business goals through 2012.
The grants will be based on the company's earnings per share, cash flow, ending investment of GE Capital, and 2012 return on total capital.
Depending on how well the company does, executives could get 75 percent to double their February 2013 base salary and separate bonuses for 2012 performance.
Immelt refused a bonus in 2008 and millions of dollars in performance awards, saying that the company's falling profits and plummeting share price prompted him to forgo the payments.
In a separate filing, GE detailed recent results for five business segments created in a Jan. 1 reorganization.
The company created a new home and business unit that includes appliances and lighting and shuffled some functions among the other units -- technology, energy, finance, and NBC Universal.
GE Capital offers to exchange $7.7 bln in debt
General Electric Co.'s financing arm, GE Capital, said Wednesday it is offering holders of about $7.7 billion in debentures a chance to exchange that debt for a bonus payment and other securities.
GE Capital is offering to pay those who accept the offer within 10 days a cash payment of 1 percent of the principal amount of the debt. That payment falls to 0.5 percent for the following 10 days.
The exchange, for trust securities with the same maturity and interest rate, is a move to boost GE Capital's so-called Tier 1 capital, a measure of health for financial institutions.
The offer applies to five lots of subordinated debentures that mature in 2067 with various interest rates.
GE shows smart appliances at Olympics
General Electric Co.’s GE Appliances & Lighting has opened The Home of the Future, featuring GE Profile Smart appliances, at the Vancouver 2010 Olympic and Paralympic Winter Games.
The futuristic “green” home is part of the Power Smart Village, an environmentally focused site in downtown Vancouver open to the public every day of the Winter Games.
So-called “smart” or grid-enabled appliances carry energy from utilities to homes more efficiently, and they send data back to the utilities that can help manage electric power more wisely.
In areas where prices vary daily according to demand, the appliances can respond to signals from the utilities by shifting into power-saving modes or delaying operation until demand is lower.
“I think GE Profile Smart appliances will usher in a new revolution, a revolution in which these appliances will enable us to use energy more wisely and help reduce greenhouse gas emissions,” said James Campbell, GE Appliances and Lighting president and CEO, in a news release.
The Home of the Future was built from two recycled steel shipping containers, and it features other environmentally friendly elements such as vertical gardens on the exterior walls, high-efficiency windows, solar panels, recycled wood and energy-efficient lighting. It is expected to be open to the public through March 21.
General Electric's overall work force fell by about 6 percent worldwide in 2009 as it struggled to deal with the effects of the deep recession and financial crisis, according to a company regulatory filing Friday.
GE's annual report shows the industrial and financial heavyweight reduced its overall employee head count by about 19,000 jobs to 304,000 workers. It's the second year in a row that jobs have fallen at one of the world's largest companies after several years of job growth earlier in the decade.
Excluding 16,000 jobs that came on the company's rolls last year when it took a majority stake in a Central American bank, GE's work force fell by 35,000. That was much larger than the 4,000 drop in jobs in 2008, the year that GE first began to feel the effects of the global downturn.
Worst hit was the conglomerate's GE Capital lending unit, which saw profits crumble last year as credit dried up and its losses on loans gone bad soared in areas like commercial real estate and credit cards. GE Capital shed 25 percent of its work force to finish 2009 at about 55,000 employees, part of a company plan to significantly shrink the size of the division.
GE expands energy footprint in Iraq
General Electric Co. announced it would join its partners in Iraqi Kurdistan to advance $200 million in power generation projects.
GE through its partners at Mass Global Investment Co. advanced the development of six gas-turbine power units for plants in Dahuk and Sulaymaniyah.
The projects are intended to meet the growing energy demand in the northern Kurdish provinces, the Kurdistan Regional Government in Iraq announced.
GE sets bonuses targets for 1,000 executives
General Electric said Friday it will pay bonuses to about 1,000 executives, including CEO Jeffrey Immelt, if the conglomerate hits business goals through 2012.
The grants will be based on the company's earnings per share, cash flow, ending investment of GE Capital, and 2012 return on total capital.
Depending on how well the company does, executives could get 75 percent to double their February 2013 base salary and separate bonuses for 2012 performance.
Immelt refused a bonus in 2008 and millions of dollars in performance awards, saying that the company's falling profits and plummeting share price prompted him to forgo the payments.
In a separate filing, GE detailed recent results for five business segments created in a Jan. 1 reorganization.
The company created a new home and business unit that includes appliances and lighting and shuffled some functions among the other units -- technology, energy, finance, and NBC Universal.
GE Capital offers to exchange $7.7 bln in debt
General Electric Co.'s financing arm, GE Capital, said Wednesday it is offering holders of about $7.7 billion in debentures a chance to exchange that debt for a bonus payment and other securities.
GE Capital is offering to pay those who accept the offer within 10 days a cash payment of 1 percent of the principal amount of the debt. That payment falls to 0.5 percent for the following 10 days.
The exchange, for trust securities with the same maturity and interest rate, is a move to boost GE Capital's so-called Tier 1 capital, a measure of health for financial institutions.
The offer applies to five lots of subordinated debentures that mature in 2067 with various interest rates.
GE shows smart appliances at Olympics
General Electric Co.’s GE Appliances & Lighting has opened The Home of the Future, featuring GE Profile Smart appliances, at the Vancouver 2010 Olympic and Paralympic Winter Games.
The futuristic “green” home is part of the Power Smart Village, an environmentally focused site in downtown Vancouver open to the public every day of the Winter Games.
So-called “smart” or grid-enabled appliances carry energy from utilities to homes more efficiently, and they send data back to the utilities that can help manage electric power more wisely.
In areas where prices vary daily according to demand, the appliances can respond to signals from the utilities by shifting into power-saving modes or delaying operation until demand is lower.
“I think GE Profile Smart appliances will usher in a new revolution, a revolution in which these appliances will enable us to use energy more wisely and help reduce greenhouse gas emissions,” said James Campbell, GE Appliances and Lighting president and CEO, in a news release.
The Home of the Future was built from two recycled steel shipping containers, and it features other environmentally friendly elements such as vertical gardens on the exterior walls, high-efficiency windows, solar panels, recycled wood and energy-efficient lighting. It is expected to be open to the public through March 21.
Sunday, February 14, 2010
Olympics, GE sues Mitsubishi, Obama, and Lobbyists
Olympic Opening Draws 33 Million U.S. Viewers
The opening of the Winter Olympics drew a surge of viewers Friday, even as the Games' planners contended with unseasonably warm weather and a tragic death. An average of 32.6 million people in the U.S. watched the opening ceremony on NBC, according to early figures provided by the General Electric Co. network. That is 47% above the 22.2 million who watched the Torino, Italy, opening four years ago, and the third-most watched Winter opening since at least the 1980s.
GE sues Mitsubishi over turbine patents
Washington: General Electric, the biggest maker of wind turbines in the United States, filed a new patent- infringement lawsuit against Mitsubishi Heavy Industries and plans to appeal an earlier case it lost. The new complaint, filed on Thursday in federal court in Dallas, claims Mitsubishi Heavy infringes two patents.
Why is Obama Taking Recovery Advice From GE’s CEO?
Former General Electric CEO Jack Welch epitomized the ultimate corporate globalization mentality when he declared in 1998: "Ideally, you'd have every plant you own on a barge." The idea was to abandon existing workers as rapidly as possible in search of the lowest possible wage and maximum control. GE's prominence always guarantees it the ear of the president. Current CEO Jeffrey Immelt is a member of President Obama's "kitchen cabinet," the advisory board set up to "provide an independent voice on economic issues" and offer "independent advice to the President as he formulates and implements his plans for economic recovery."
Lobbyists didn’t suffer a slowdown in 2009
General Electric, based in Fairfield, Conn., was the second biggest-spending corporation with $25.5 million, up from $19.4 million in 2008. GE’s NBC Universal subsidiary is seeking approval to merge with Philadelphia-based Comcast.
The opening of the Winter Olympics drew a surge of viewers Friday, even as the Games' planners contended with unseasonably warm weather and a tragic death. An average of 32.6 million people in the U.S. watched the opening ceremony on NBC, according to early figures provided by the General Electric Co. network. That is 47% above the 22.2 million who watched the Torino, Italy, opening four years ago, and the third-most watched Winter opening since at least the 1980s.
GE sues Mitsubishi over turbine patents
Washington: General Electric, the biggest maker of wind turbines in the United States, filed a new patent- infringement lawsuit against Mitsubishi Heavy Industries and plans to appeal an earlier case it lost. The new complaint, filed on Thursday in federal court in Dallas, claims Mitsubishi Heavy infringes two patents.
Why is Obama Taking Recovery Advice From GE’s CEO?
Former General Electric CEO Jack Welch epitomized the ultimate corporate globalization mentality when he declared in 1998: "Ideally, you'd have every plant you own on a barge." The idea was to abandon existing workers as rapidly as possible in search of the lowest possible wage and maximum control. GE's prominence always guarantees it the ear of the president. Current CEO Jeffrey Immelt is a member of President Obama's "kitchen cabinet," the advisory board set up to "provide an independent voice on economic issues" and offer "independent advice to the President as he formulates and implements his plans for economic recovery."
Lobbyists didn’t suffer a slowdown in 2009
General Electric, based in Fairfield, Conn., was the second biggest-spending corporation with $25.5 million, up from $19.4 million in 2008. GE’s NBC Universal subsidiary is seeking approval to merge with Philadelphia-based Comcast.
Sunday, December 20, 2009
Imagining a Smaller GE Capital (NYT)
Imagining a Smaller GE Capital
Imagine that Jeffrey R. Immelt, chief executive of General Electric, could remake the conglomerate’s troubled finance unit, GE Capital, from scratch. Ideally he would narrow its focus to businesses related to G.E.’s core industrial strengths — and the size of its balance sheet to about $360 billion in assets, Reuters Breakingviews suggests. Imagining, though, illustrates just how difficult it will be to tame GE Capital to a manageable size.
Mr. Immelt has already taken out the hatchet. But his aim of chopping GE Capital’s balance sheet down from $631 billion, by about a quarter across most areas, is going to take time. He has 2012 in his sights to achieve this ambition — something he is likely to reiterate at his annual investor presentation Tuesday. That could seem an eternity to investors who have seen the company’s market value shrink by more than $240 billion since the credit crisis erupted, Reuters Breakingviews notes.
If it were possible for Mr. Immelt to hit the reset button on GE Capital, Reuters Breakingviews says, it is not difficult to see what would disappear first: commercial real estate. The market for office properties and securities is in a shambles, and GE Capital, as both lender and landlord, is heavily exposed. The company recently raised to $7 billion its estimate of unrealized losses on underwater properties. The trouble is that most experts predict that asset values for everything from apartment buildings to skyscrapers have further to fall.
READ THE FULL STORY HERE.
Imagine that Jeffrey R. Immelt, chief executive of General Electric, could remake the conglomerate’s troubled finance unit, GE Capital, from scratch. Ideally he would narrow its focus to businesses related to G.E.’s core industrial strengths — and the size of its balance sheet to about $360 billion in assets, Reuters Breakingviews suggests. Imagining, though, illustrates just how difficult it will be to tame GE Capital to a manageable size.
Mr. Immelt has already taken out the hatchet. But his aim of chopping GE Capital’s balance sheet down from $631 billion, by about a quarter across most areas, is going to take time. He has 2012 in his sights to achieve this ambition — something he is likely to reiterate at his annual investor presentation Tuesday. That could seem an eternity to investors who have seen the company’s market value shrink by more than $240 billion since the credit crisis erupted, Reuters Breakingviews notes.
If it were possible for Mr. Immelt to hit the reset button on GE Capital, Reuters Breakingviews says, it is not difficult to see what would disappear first: commercial real estate. The market for office properties and securities is in a shambles, and GE Capital, as both lender and landlord, is heavily exposed. The company recently raised to $7 billion its estimate of unrealized losses on underwater properties. The trouble is that most experts predict that asset values for everything from apartment buildings to skyscrapers have further to fall.
READ THE FULL STORY HERE.
Defensive Posture Helped Boost GE, Immelt Says (WSJ)
Defensive Posture Helped Boost GE, Immelt Says
General Electric Co. Chairman and Chief Executive Jeff Immelt told investors Tuesday that the "worst is over" for the company's finance unit, and he forecast that GE revenue next year will roughly equal this year's.
Speaking from the stage of "Saturday Night Live" in New York's Rockefeller Center, Mr. Immelt said GE's outlook improved after the company played "defense" for much of the past year. "I think you can think about the company being back on offense, doing what we do best," he said. He also said the global economic environment is improving, though he expects the recovery to be gradual.
GE projects 2010 revenue of about $155 billion, flat with this year, and a profit margin of about 16%, also unchanged. GE doesn't offer a formal earnings estimate, but Mr. Immelt said he expects sales and profit in GE's industrial units to be roughly flat next year compared with this year. GE said last week it expects profit at its finance unit, GE Capital, to be flat in 2010.
READ THE FULL STORY HERE.
General Electric Co. Chairman and Chief Executive Jeff Immelt told investors Tuesday that the "worst is over" for the company's finance unit, and he forecast that GE revenue next year will roughly equal this year's.
Speaking from the stage of "Saturday Night Live" in New York's Rockefeller Center, Mr. Immelt said GE's outlook improved after the company played "defense" for much of the past year. "I think you can think about the company being back on offense, doing what we do best," he said. He also said the global economic environment is improving, though he expects the recovery to be gradual.
GE projects 2010 revenue of about $155 billion, flat with this year, and a profit margin of about 16%, also unchanged. GE doesn't offer a formal earnings estimate, but Mr. Immelt said he expects sales and profit in GE's industrial units to be roughly flat next year compared with this year. GE said last week it expects profit at its finance unit, GE Capital, to be flat in 2010.
READ THE FULL STORY HERE.
Tuesday, November 4, 2008
Recent News: Stock Performance, Immelt Comments, Earnings, Pickens, Wind Energy, Chinese Jetliners, and Treasury Investment
Traders Seek Protection Against Dips In GE Stock
Options traders appear to be taking a cautious approach to General Electric Co. (GE) as the company's shares hover near a 52-week low. Within the first hour of Monday's session, several traders emerged to take moderately bearish positions in General Electric, selling calls and buying puts...
General Electric (GE) NewsBite - GE Rises on CEO's Comments
General Electric (NYSE: GE) opened at $19.78. So far today, the stock has hit a low of $19.69 and a high of $19.88. GE is now trading at $19.72, up $0.21 (1.05%). Over the last 52 weeks the stock has ranged from a low of $17.27 to a high of $40.54. Shares of GE are trading higher this morning after company CEO Jeff Immelt said in an interview this morning that he expects the company to earn $20 billion...
GE CEO tells French newspaper firm to earn $20 billion this year
U.S.-based conglomerate General Electric Co will make $20 billion this year, its Chief Executive Jeff Immelt said in an interview with French business daily Les Echos Monday, without specifying which measure of earnings he was refering to....
GE Set for a Pickens Windfall
General Electric sells more wind turbines, by far, than any other supplier in the nation. But it never sold 667 of them at once until legendary oilman T. Boone Pickens decided to build his own wind farm. His "Pickens Plan" calls for the U.S. to slash its dependence on foreign oil by exploiting its own natural resources instead. By using more wind to fuel its power plants and more natural gas to power its cars, Pickens predicts, the U.S. could cut its dependence on foreign oil by one-third in the next 10 years...
General Electric orders 25 China-made jetliners
General Electric Co. agreed to buy 25 Chinese-made regional jets Tuesday, marking the first overseas order for the aircraft and providing a major boost for the manufacturer. GE's leasing unit GECAS signed an agreement to purchase the 70-seater ARJ21-700 aircraft, the official Xinhua News Agency reported Tuesday....
GE says does not expect Treasury investment
General Electric Co does not expect the Treasury Department to offer to invest funds from a $700 billion fund to bail out the financial industry in its GE Capital arm, but would listen to a proposal if one were made, a GE spokesman said on Tuesday....
Friday, October 31, 2008
Recent News: Commercial paper, stock performance, earnings, batterys, innovation, annual shareholder meeting, and Immelt quote
GE Can't Shed Those Unwanted Pounds
There was a time not so long ago when it appeared that General Electric (NYSE: GE) was an undervalued conglomerate composed of numerous strong parts. But almost by the day it's become more likely that the company may be little more than a hodgepodge of ill-fitting businesses -- many of which it can't unload -- that are headed collectively for goodness-knows-where...
Cos Participating In US Govt's Commercial Paper Program
The following is a list of companies that have registered to participate in a program to allow companies to sell commercial paper to the Federal Reserve at a rate set daily plus a fee. The Commercial Paper Funding Facility is aimed at boosting the commercial paper market, where companies secure funding for day-to- day needs, from rent to inventory....
Gee Whiz GE!
General Electric investors were shocked late Wednesday when reports began circulating that the conglomerate’s chief executive said the company was looking to maintain its 2009 profit at 2008 levels, giving the entire stock market a kick in the teeth just as trading was ending for the day....
GE boosts bets on battery technology
With a 1914 electric car displayed outside, General Electric last week hosted a symposium on batteries for transportation and the electricity grid....
GE CEO: Cos Must Innovate Amid Current Environment
General Electric Co. (GE) Chief Executive Jeffrey Immelt said Wednesday companies must continue to emphasize research and development during the current financial crisis. They will need to innovate, especially in areas such as healthcare, education and renewable energy, he said....
Ugly Quote For GE
General Electric investors got a roller-coaster ride Wednesday afternoon following reports that the conglomerate's chief executive was looking to maintain its 2009 profit at 2008 levels....
GE to Convene 2009 Shareowners Meeting in Orlando, Florida
GE announced today that it plans to hold its 2009 Annual Meeting of Shareowners on April 22, 2009 in Orlando, Florida. GE gathers shareowners in a different city each year so as to demonstrate the performance of a different business and to illustrate the diversity and strength of the Company's business portfolio...
Dow Jones to issue "clarification" on GE story-source
Dow Jones Newswires plans to issue a "clarification" of a story that it published on Wednesday afternoon about comments that General Electric Co's chief executive made about the company's 2009 financial position, according to a source familiar with the matter....
GE calls Dow Jones Immelt report 'inaccurate'
A spokesman for General Electric Co said on Wednesday that a Dow Jones report quoting Chief Executive Jeff Immelt as forecasting flat profit in 2009 was "completely out of context and inaccurate."...
There was a time not so long ago when it appeared that General Electric (NYSE: GE) was an undervalued conglomerate composed of numerous strong parts. But almost by the day it's become more likely that the company may be little more than a hodgepodge of ill-fitting businesses -- many of which it can't unload -- that are headed collectively for goodness-knows-where...
Cos Participating In US Govt's Commercial Paper Program
The following is a list of companies that have registered to participate in a program to allow companies to sell commercial paper to the Federal Reserve at a rate set daily plus a fee. The Commercial Paper Funding Facility is aimed at boosting the commercial paper market, where companies secure funding for day-to- day needs, from rent to inventory....
Gee Whiz GE!
General Electric investors were shocked late Wednesday when reports began circulating that the conglomerate’s chief executive said the company was looking to maintain its 2009 profit at 2008 levels, giving the entire stock market a kick in the teeth just as trading was ending for the day....
GE boosts bets on battery technology
With a 1914 electric car displayed outside, General Electric last week hosted a symposium on batteries for transportation and the electricity grid....
GE CEO: Cos Must Innovate Amid Current Environment
General Electric Co. (GE) Chief Executive Jeffrey Immelt said Wednesday companies must continue to emphasize research and development during the current financial crisis. They will need to innovate, especially in areas such as healthcare, education and renewable energy, he said....
Ugly Quote For GE
General Electric investors got a roller-coaster ride Wednesday afternoon following reports that the conglomerate's chief executive was looking to maintain its 2009 profit at 2008 levels....
GE to Convene 2009 Shareowners Meeting in Orlando, Florida
GE announced today that it plans to hold its 2009 Annual Meeting of Shareowners on April 22, 2009 in Orlando, Florida. GE gathers shareowners in a different city each year so as to demonstrate the performance of a different business and to illustrate the diversity and strength of the Company's business portfolio...
Dow Jones to issue "clarification" on GE story-source
Dow Jones Newswires plans to issue a "clarification" of a story that it published on Wednesday afternoon about comments that General Electric Co's chief executive made about the company's 2009 financial position, according to a source familiar with the matter....
GE calls Dow Jones Immelt report 'inaccurate'
A spokesman for General Electric Co said on Wednesday that a Dow Jones report quoting Chief Executive Jeff Immelt as forecasting flat profit in 2009 was "completely out of context and inaccurate."...
