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By Jim Martin, Doug Oathout Erie Times-News staff bloggers
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Posts tagged ‘GE’
Posted: December 10th, 2010

Owners of Erie’s most widely held stock got some good news today.
The General Electric Co. has raised its quarterly divided by 17 percent from 12 cents to 14 cents per share.
That marks the second time this year that the company has boosted its dividend.
The Fairfield, Ct.-based company has been able to raise dividends, “because of continued strong cash generation, accelerated recovery at GE Capital and solid underlying performance in our Industrial businesses through year-end 2010,” Jeff Immelt, the company’s chief executive, said in a statement.
General Electric, corporate parent of Lawrence Park-based GE Transportation, has a long history of paying corporate dividends that was broken during the financial crisis.
In February 2009, the company cut dividends from 31 cents to 10 cents a share.
The market has reacted favorably. GE stock is up 3.3 percent today to $17.71.

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Posted: March 19th, 2010

Lorenzo Simonelli, chief executive of Lawrence Park-based GE Transportation, is expected to be on hand at 11 a.m. today for a ceremonial groundbreaking for a new Habitat for Humanity home being built by GE volunteers.
Stephan Koller, a spokesman for the company, said the house being built at 1202 E. 22nd St., should be ready for its new owners sometime in June.
The future owners of the house, along with Tom NeCastro, president of the local Habitat for Humanity board, were among those expected for the groundbreaking.

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Posted: March 16th, 2010

Shares of General Electric Co. are up more than 4 percent today on news that the company is planning to increase its dividend in 2011.
Chief Financial Officer Keith Sherin told analysts at a conference Tuesday that the company is “not putting a number on it, but we do expect to grow the dividend in 2011,” according to the Associated Press.
The company, the parent of Erie-based GE Transportation, also sees potential for retiring its preferred stock and opportunities for stock buybacks.
GE cut its quarterly dividend in 2009 to 10 cents per share from 31 cents. It has remained at 10 cents per share since then.
At 3:30 p.m., the stock was up 4.6 percent at $18.09 a share.

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Posted: March 9th, 2010

General Electric Co. this afternoon released the following:

FAIRFIELD, Conn. — GE’s on-line annual report 2009 titled “Renew” is now available on the Company’s Web site at www.ge.com/annualreport.

The report focuses on the Company’s solid 2009 performance amid continued global economic pressure and its execution against four strategic priorities: keeping GE safe and secure; executing and positioning our infrastructure businesses to perform through the cycle; creating financial flexibility; and protecting our franchise and brand. The report also details a roadmap for GE’s renewal, characterized by: a simplified portfolio focused on infrastructure; investing in profitable growth; creating market solutions to tough societal problems; an energized and accountable team; and attractive growth in earnings, cash and returns.

The report consists of Chairman and CEO Jeff Immelt’s letter to investors; pictorial chapters on the key elements of the GE renewal model; a letter from the Board’s Presiding Director Ralph Larsen on the Company’s compensation philosophy; an overview on governance; and a comprehensive financial section. The online version features video stories about customers, including AEP and Petrobas.

“In 2008 – 09, a period many considered the most difficult economic crisis since the Great Depression, GE earned about $30 billion and generated $36 billion of cash. And we finished this period much stronger than we started,” GE Chairman and CEO Jeff Immelt writes in his letter. “The world has been reset. Today’s uncertainty feels like the ‘new normal.’ We will not return to the relative tranquility of the pre-crisis world. Growth will be harder to come by, trends will be more volatile and constituent voices will be louder. We see this environment as an opportunity to renew GE.

“GE is an innovative technology and services company that can solve some of the world’s most difficult problems, grow earnings and have substantial cash available to reinvest in the Company or return to shareowners. In the markets we have chosen, we will have a meaningful competitive advantage,” Immelt writes, driven by unique GE strengths that include broad technical leadership, service expansion, emerging-market growth, valuable partnerships, strategic financial services and a legacy of leadership development. “We expect 2010 earnings to be flat with 2009. In 2011 and beyond, we expect GE to generate solid earnings growth, even if the economic recovery is uneven. We will achieve this growth while generating substantial ‘free cash’ that could further enhance investor returns.”

GE has begun distributing more than four million reports and proxy statements in preparation for its annual shareowners meeting on Wednesday, April 28, 2010, in Houston, Texas.

“We worked hard during the crisis to prepare the Company for the future,” Immelt says. “We are emerging as a ‘Renewed GE,’ a company that is more competitive and positioned for long-term growth.”

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Posted: March 5th, 2010

General Electric Co. said Friday that Chief Executive Jeffrey Immelt did not receive 2009 bonus, the second straight year he gave up extra pay as the industrial and financial conglomerate struggled with one of its worst years on record, according to the Associated Press.

However, GE did not leave Immelt empty-handed. He was paid a $3.3 million salary, the same as a year ago, and granted him 150,000 performance share units worth $1.8 million that will convert to GE stock if the company meets certain financial goals. GE also gave Immelt 2 million in stock options Thursday worth between $7 million and $8 million, though those options do not appear on his 2009 pay package.

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Posted: December 18th, 2009

GE Transportation announced this morning that it had received an order for 100 locomotives from South Africa. It is one more in a — thankfully — growing list of orders for our largest employer.
The new orders hint that a recovery of sorts is at hand, albeit a slight one.
Here is the full text of GE’s release this morning:

GE South African Technologies (GESAT), GE Transportation’s entity in South Africa, announced today that it has signed a landmark contract with Transnet Limited to supply Transnet Freight Rail (TFR) with 100 locomotives. TFR is South Africa’s state-owned rail freight logistics utility; Transnet Limited is its parent company. Ten of the locomotives will be manufactured in Erie and Grove City, USA and 90 will be manufactured locally at Transnet Rail Engineering’s site in South Africa with kits provided by GE Transportation.
“We are pleased that GE is helping drive South Africa towards a lead manufacturing economy by localizing the production of locomotives in South Africa. We look forward to sharing some of our global success with Transnet and thus jointly expanding our regional footprint,” said Lorenzo Simonelli, president and CEO of GE Transportation. “GE’s extensive knowledge in localizing locomotive assembly can be witnessed in some of the world’s leading developing economies such as China, Brazil and Kazakhstan. Each of our global manufacturing sites has been specifically customized in line with customer and country requirements and capabilities. We worked closely with Transnet Rail Engineering to develop a comprehensive localization plan that complements local strengths and transfers worldclass skills and technology where applicable.”
In December 2008, GE Transportation signed an agreement with one of South Africa’s foremost Broad-Based Black Economic Empowerment (BBBEE) companies, Mineworkers Investment Company (MIC), to establish the subsidiary GE South Africa Technologies (Pty) Limited (GESAT), allowing the company to more actively participate in South Africa’s social and economic transformation in the rail industry.
Commenting on the announcement of this contract, Tshidi Madima, Executive Director of the MIC stated, “We are delighted that GESAT has been successful in winning this Transnet Freight Rail contract as this is an excellent example of the type of participation in the South African economy that was anticipated in the creation of GESAT 12 months ago.”
GE’s model C30ACi, the first AC diesel electric locomotive to be introduced to sub-Saharan Africa, will have an engine that delivers 3,300 Gross HorsePower (GHP) using an electronic fuel-injection system that automatically supplies the exact amount of fuel needed for optimal engine efficiency. The locomotives will also feature GE’s unique AC propulsion technology and dynamic braking. The addition of these new locomotives, which will be used to haul freight and coal, will decrease life-cycle costs, improve fuel efficiency and reduce emissions. The first locomotives and kits are scheduled to be delivered in early 2011; locomotive assembly in country, with kits from Erie and engines from Grove City, should begin at the end of 2010.

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Posted: October 21st, 2009

Canadian National Railway said Wednesday it has ordered 70 new locomotives — 35 of them from Erie-based GE Transportation, according to the Associated Press. Terms were not disclosed.

The order was with GE Transportation and Electro-Motive Diesel Inc.

CN said it will acquire 35 ES44DC locomotives from GE starting in the fourth quarter of 2010, and 35 SD70M-2s from EMD beginning in January 2011.

The GE locomotives produce 4,400 horsepower and the EMDs 4,350 horsepower.

CN said it is looking to increase fuel efficiency, improving service reliability and reduce greenhouse-gas emissions.

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Posted: October 16th, 2009

Lawrence Park-based GE Transportation, which recently announced plans to lay off 1,480 employees, reported a third-quarter profit of $177 million, down 31 percent compared to the same quarter of 2008.
The company’s transportation division, which saw revenues fall 23 percent to $970 million, reports that base costs have been slashed by 20 percent.
Those figures were announced today as part of a broader earnings report for the General Electric Co.
General Electric’s earnings fell 44 percent to $2.4 billion.
- Jim Martin

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Posted: October 15th, 2009

There were positive signs on Wall Street Wednesday that things might be turning around for the nation’s railroad industry. Such a turnaround would be welcome news for GE Transportation, Erie’s largest employer.
The company has been been hit hard by the slow economy, which has caused railroad companies to idle locomotives because of a sharp downturn in freight traffic.
The good news came Wednesday in the form of an earnings report from CSX. Although the railroad company reported that its third-quarter profit dropped 23 percent, it posted an improved freight volume percentage from the second quarter — signalling that shipping is beginning to pick up.
A resurgence of shipping would be welcome at GE Transportation, which recently laid off 1,480 workers because of a lack of orders for new locomotives.
– Doug Oathout

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Posted: September 24th, 2009

GE Transportation announced Thursday that Mongolian Railways has taken delivery and completed testing of its first Evolution Series Locomotive produced at GE Transportation’s Lawrence Park plant.
Mongolian Railways leases locomotives and railcars to railway companies in Mongolia. The Evolution Series locomotive will be leased to Ulaanbaatar Railway to increase hauling capability while reducing costs through the Evolution’s fuel-efficient, low-emissions engine.
The Ulaanbaatar railway is an important gateway, connecting landlocked Mongolia with the countries of Europe, East Asia and South East Asia. The main railway route stretches from north to south, connecting Moscow and Beijing.

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