(alleyinsider.com) -- This can't be true, can it? Can Microsoft really be running this far behind the train yet again? After 15 years of chasing Internet innovators, hasn't Microsoft learned that it can't do online what it did in the PC world (Crushing Netscape was the big exception, but that was 14 years ago now)?
Mary Jo Foley at ZDnet:
Microsoft is taking reservations starting April 28 for a limited beta of a new public-information service called Vine.
The service, slated to go to testers in May, uses alerts, reports and a personal dashboard to allow users to stay in touch, particularly during crisis situations.
The Vine service initially was developed by the Windows Live team, post Hurricane Katrina. I heard a bit about the service back in June 2008, after which the service — like a number of Windows Live properties — seemed to just disappear. It turns out the concept was passed over to Chief Research and Strategy Officer Craig Mundie’s division and incubated like other technologies in Microsoft’s Start Up Business Accelerator group. “Eventually, products and services started in the accelerator will transition into one of Microsoft’s existing business divisions,” a spokesperson said.
Read more here
Tuesday, April 28, 2009
Monday, April 27, 2009
Viterra May Buy ABB Grain for Up to A$1.6 Billion
(Bloomberg) -- Viterra Inc., Canada’s largest grain handler, is in talks to buy Australia’s ABB Grain Ltd. for as much as A$1.6 billion ($1.1 billion) to add supply from the world’s second-largest barley exporter and No. 4 wheat shipper.
Viterra offered between A$9 and A$9.50 a share in a non- binding bid that includes cash, stock and dividends, Adelaide- based ABB Grain said today in a statement. The offer is as much as 36 percent more than its closing price yesterday. ABB Grain today jumped as much as 21 percent to a five-month high.
Viterra is considering acquisitions in Australia, Europe and the U.S., Mayo Schmidt, the chief executive officer of the Regina, Saskatchewan-based company said in January. Australia abandoned its monopoly wheat and barley export systems in the past two years, creating opportunities for international companies to ship grain from the nation.
The offer shows “the keenness by which international traders want to establish Southern Hemisphere” bases, Grant Saligari, research analyst at Credit Suisse Group AG, said by phone from Sydney. “It is a low point in the cycle and it’s a reasonably low point in equity markets.”
ABB Grain, Australia’s largest barley exporter, traded 19 percent higher at A$8.32 as of 1:20 p.m. Sydney time on the Australian stock exchange. Viterra closed down 1.8 percent on the Toronto stock exchange yesterday.
Boost for Rivals
Rival grain exporters rose on speculation of further consolidation in the industry, Saligari said. AWB Ltd. climbed 13 percent to A$1.49 and Graincorp Ltd. gained 7.9 percent.
Agricultural companies worldwide are seeking acquisitions on optimism the global recession won’t curtail rising food demand. Cargill Inc., the second-largest U.S. beef processor, said last November it’s looking for acquisitions after the collapse in raw material and share prices reduced valuations.
“There is no assurance that agreement will be reached or that a transaction will take place at all or within the reported range,” ABB said in the statement. “The proposal is subject to a number of conditions.”
ABB Grain appointed JPMorgan Chase & Co. as its adviser. Viterra named Macquarie Capital Advisers Ltd. and Genuity Capital Markets, Viterra spokeswoman Colleen Vancha said by e- mail.
ABB Grain’s annual profit may rise, the company said in February, after expanding its business in the Ukraine, New Zealand and locally to reduce its reliance on the Australian grain harvest. ABB has 111 inland storage terminals in Australia as well as seven export ports, according to its Web site.
Its Joe White Maltings division controls about 9 percent of the global market for the beer-making ingredient. ABB Grain’s range of rural services include fertilizer and agricultural chemical supply, wool and livestock activities.
Read more here
Viterra offered between A$9 and A$9.50 a share in a non- binding bid that includes cash, stock and dividends, Adelaide- based ABB Grain said today in a statement. The offer is as much as 36 percent more than its closing price yesterday. ABB Grain today jumped as much as 21 percent to a five-month high.
Viterra is considering acquisitions in Australia, Europe and the U.S., Mayo Schmidt, the chief executive officer of the Regina, Saskatchewan-based company said in January. Australia abandoned its monopoly wheat and barley export systems in the past two years, creating opportunities for international companies to ship grain from the nation.
The offer shows “the keenness by which international traders want to establish Southern Hemisphere” bases, Grant Saligari, research analyst at Credit Suisse Group AG, said by phone from Sydney. “It is a low point in the cycle and it’s a reasonably low point in equity markets.”
ABB Grain, Australia’s largest barley exporter, traded 19 percent higher at A$8.32 as of 1:20 p.m. Sydney time on the Australian stock exchange. Viterra closed down 1.8 percent on the Toronto stock exchange yesterday.
Boost for Rivals
Rival grain exporters rose on speculation of further consolidation in the industry, Saligari said. AWB Ltd. climbed 13 percent to A$1.49 and Graincorp Ltd. gained 7.9 percent.
Agricultural companies worldwide are seeking acquisitions on optimism the global recession won’t curtail rising food demand. Cargill Inc., the second-largest U.S. beef processor, said last November it’s looking for acquisitions after the collapse in raw material and share prices reduced valuations.
“There is no assurance that agreement will be reached or that a transaction will take place at all or within the reported range,” ABB said in the statement. “The proposal is subject to a number of conditions.”
ABB Grain appointed JPMorgan Chase & Co. as its adviser. Viterra named Macquarie Capital Advisers Ltd. and Genuity Capital Markets, Viterra spokeswoman Colleen Vancha said by e- mail.
ABB Grain’s annual profit may rise, the company said in February, after expanding its business in the Ukraine, New Zealand and locally to reduce its reliance on the Australian grain harvest. ABB has 111 inland storage terminals in Australia as well as seven export ports, according to its Web site.
Its Joe White Maltings division controls about 9 percent of the global market for the beer-making ingredient. ABB Grain’s range of rural services include fertilizer and agricultural chemical supply, wool and livestock activities.
Read more here
Thursday, April 23, 2009
S.Africa c.bank sees further GDP contraction in Q1
(Reuters) - South Africa's business cycle indicators have weakened sharply over the past few months, "almost guaranteeing" another contraction in the first quarter of 2009, central bank Chief Economist Monde Mnyande said on Thursday.
He said in a speech posted on the Reserve Bank's website, the trend pointed to a continued slowdown in aggregate economic activity this year.
Read more here
He said in a speech posted on the Reserve Bank's website, the trend pointed to a continued slowdown in aggregate economic activity this year.
Read more here
Wednesday, April 22, 2009
Kirin Offers to Buy Australia’s Lion Nathan as Japan Sales Fall
(Bloomberg) -- Kirin Holdings Co., Japan’s largest beverage maker, offered to buy the 54 percent of Lion Nathan Ltd. it doesn’t already own, accelerating its push into Australia to counter falling beer sales at home.
The brewer of Kirin beer hasn’t decided how much to pay for the stake, valued at A$2.4 billion ($1.7 billion) at yesterday’s closing price, spokesman Makoto Ando said in Tokyo. Sydney-based Lion Nathan, Australia’s second-largest brewer, will consider the “non-binding” offer, it said in a statement.
The Japanese company, which already owns Australia’s largest milk processor and juicemaker, has boosted international expansion as a declining birthrate reduces potential customers at home and a stronger yen makes foreign acquisitions cheaper. The offer comes two months after Lion Nathan scrapped a A$7.3 billion bid, backed by Kirin, for Coca-Cola Amatil Ltd.
“Kirin has obviously taken a shine to Australian assets and decided to take advantage of the strength in the yen,” said Sean Fenton, who manages about $324 million at Tribeca Investment Partners in Sydney. The Japanese currency has climbed 42 percent against the Australian dollar during the past year.
Kirin shares rose 0.8 percent to 1,087 yen in Tokyo trading as of 10:08 a.m. in Tokyo, paring their decline this year to 7.7 percent. Lion Nathan, which was halted from trade on Australia’s stock exchange before the market opened, closed yesterday at A$8.31, giving the company a market value of A$4.4 billion.
Overseas Acquisitions
Gaining full ownership of Lion Nathan would help Kirin President Kazuyasu Kato meet his goal of doubling the proportion of overseas sales by 2015.
The Japanese brewer said in August it planned to spend 300 billion yen ($3.1 billion) on acquisitions to maintain growth. It aims to increase its percentage of overseas sales to 30 percent by 2015 from 18 percent in 2006.
Since then it’s acquired Australian milk processor Dairy Farmers for A$675 million and announced a plan to acquire 43 percent stake in San Miguel Corp.’s Philippine beer for 58.9 billion pesos ($1.21 billion).
In 2007, Kirin acquired Australian dairy and fruit juice maker National Foods from San Miguel in a deal valued at 294 billion yen.
Kirin first acquired a 45 percent stake in Lion Nathan, then based in New Zealand, in 1998 for NZ$1.33 billion ($736 million).
Lion Nathan expects net income between A$300 million and A$315 million in the 12 months ending Sept. 30, boosted by last year’s purchase of brewer J. Boag & Son. Ltd.
Read more here
The brewer of Kirin beer hasn’t decided how much to pay for the stake, valued at A$2.4 billion ($1.7 billion) at yesterday’s closing price, spokesman Makoto Ando said in Tokyo. Sydney-based Lion Nathan, Australia’s second-largest brewer, will consider the “non-binding” offer, it said in a statement.
The Japanese company, which already owns Australia’s largest milk processor and juicemaker, has boosted international expansion as a declining birthrate reduces potential customers at home and a stronger yen makes foreign acquisitions cheaper. The offer comes two months after Lion Nathan scrapped a A$7.3 billion bid, backed by Kirin, for Coca-Cola Amatil Ltd.
“Kirin has obviously taken a shine to Australian assets and decided to take advantage of the strength in the yen,” said Sean Fenton, who manages about $324 million at Tribeca Investment Partners in Sydney. The Japanese currency has climbed 42 percent against the Australian dollar during the past year.
Kirin shares rose 0.8 percent to 1,087 yen in Tokyo trading as of 10:08 a.m. in Tokyo, paring their decline this year to 7.7 percent. Lion Nathan, which was halted from trade on Australia’s stock exchange before the market opened, closed yesterday at A$8.31, giving the company a market value of A$4.4 billion.
Overseas Acquisitions
Gaining full ownership of Lion Nathan would help Kirin President Kazuyasu Kato meet his goal of doubling the proportion of overseas sales by 2015.
The Japanese brewer said in August it planned to spend 300 billion yen ($3.1 billion) on acquisitions to maintain growth. It aims to increase its percentage of overseas sales to 30 percent by 2015 from 18 percent in 2006.
Since then it’s acquired Australian milk processor Dairy Farmers for A$675 million and announced a plan to acquire 43 percent stake in San Miguel Corp.’s Philippine beer for 58.9 billion pesos ($1.21 billion).
In 2007, Kirin acquired Australian dairy and fruit juice maker National Foods from San Miguel in a deal valued at 294 billion yen.
Kirin first acquired a 45 percent stake in Lion Nathan, then based in New Zealand, in 1998 for NZ$1.33 billion ($736 million).
Lion Nathan expects net income between A$300 million and A$315 million in the 12 months ending Sept. 30, boosted by last year’s purchase of brewer J. Boag & Son. Ltd.
Read more here
Monday, April 20, 2009
RBA says outlook for demand, output weaker than expected
(MarketWatch) -- The policy board for the Reserve Bank of Australia found earlier this month that the near-term outlook for demand and output in the nation was "weaker than earlier expected," according to minutes of the board's April 7 meeting released Tuesday.
"A period of low capacity utilization and a weaker labor market was seen as increasing the likelihood of a decline in inflation over the medium term," a summary of the board meeting said. "As such, members saw scope for a modest reduction in the cash rate."
At the meeting, Australia's central bank cut interest rates by a quarter-point and said mortgage rates were at historically low levels, marking its clearest signal yet that the interest-rate cycle has bottomed. It cut the cash rate to 3%, a 49-year low. See full story on RBA's April 7 rate cut.
Even so, the board's summary said that a "recovery in demand was likely towards the end of the year."
Read more here
"A period of low capacity utilization and a weaker labor market was seen as increasing the likelihood of a decline in inflation over the medium term," a summary of the board meeting said. "As such, members saw scope for a modest reduction in the cash rate."
At the meeting, Australia's central bank cut interest rates by a quarter-point and said mortgage rates were at historically low levels, marking its clearest signal yet that the interest-rate cycle has bottomed. It cut the cash rate to 3%, a 49-year low. See full story on RBA's April 7 rate cut.
Even so, the board's summary said that a "recovery in demand was likely towards the end of the year."
Read more here
Thursday, April 16, 2009
S.African stocks slide on miners, but rand rallies
(Reuters) - South African blue-chip stocks fell more than 2 percent on Thursday, as weaker commodity prices battered miners, but bonds rallied and the rand hit a new 6-month high against the dollar.
The JSE Top-40 index fell 2.09 percent to 18,920.50 points while the broader All-share index dropped 1.8 percent to 20,936.87 points, for a second day of losses.
"We are just having a bit of profit-taking coming in. It's a bit strange, because we are underperforming the rest of the world markets today," a Johannesburg-based trader said.
"It's a bit unusual. I think the strong rand also is weighing on currency-sensitive stocks a little bit."
Europe's FTSEurofirst 300 index rose above the 800-points mark for the first time in two months after better-than-expected quarterly results from JPMorgan Chase & Co.
But on the Johannesburg bourse, gold miners led the fall as the price of bullion slipped. Harmony Gold tumbled 7.39 percent to 79 rand and Gold Fields lost 3.45 percent to 95.10 rand.
The JSE platinum index dropped 4.5 percent, led by the world's third-biggest platinum producer Lonmin shedding 6.81 percent to 176 rand. Anglo Platinum, the world's biggest producer, lost 5.70 percent to 480 rand.
The rand surged, though, boosting government bonds, with the currency triggering stop losses at around 9 to the dollar.
The local currency was trading at 8.9350 to the greenback at 1555 GMT, 1.3 percent stronger than its previous close in New York, after earlier touching 8.8750, its firmest level since October 14.
Read more here
The JSE Top-40 index fell 2.09 percent to 18,920.50 points while the broader All-share index dropped 1.8 percent to 20,936.87 points, for a second day of losses.
"We are just having a bit of profit-taking coming in. It's a bit strange, because we are underperforming the rest of the world markets today," a Johannesburg-based trader said.
"It's a bit unusual. I think the strong rand also is weighing on currency-sensitive stocks a little bit."
Europe's FTSEurofirst 300 index rose above the 800-points mark for the first time in two months after better-than-expected quarterly results from JPMorgan Chase & Co.
But on the Johannesburg bourse, gold miners led the fall as the price of bullion slipped. Harmony Gold tumbled 7.39 percent to 79 rand and Gold Fields lost 3.45 percent to 95.10 rand.
The JSE platinum index dropped 4.5 percent, led by the world's third-biggest platinum producer Lonmin shedding 6.81 percent to 176 rand. Anglo Platinum, the world's biggest producer, lost 5.70 percent to 480 rand.
The rand surged, though, boosting government bonds, with the currency triggering stop losses at around 9 to the dollar.
The local currency was trading at 8.9350 to the greenback at 1555 GMT, 1.3 percent stronger than its previous close in New York, after earlier touching 8.8750, its firmest level since October 14.
Read more here
Wednesday, April 15, 2009
EBay to buy Korea's Gmarket
(MarketWatch) -- EBay Inc. said Thursday it will pay up to $1.2 billion to buy South Korea's largest online marketplace in a move to expand its Asian operations.
Under the terms of the deal, San Jose, Calif.-based eBay will make a cash tender offer of $24 per share for all outstanding shares of Gmarket common shares and American Depository Shares.
The purchase price will be up to $1.2 billion if all outstanding shares are tendered. EBay said it has already clinched agreements to purchase at least 67% of the Gmarket's shares.
Ebay will combine the South Korean e-commerce Web site with its own existing Korean marketplace business, Internet Auction Company.
"This deal creates strong operational synergies between the two market leaders, offering more opportunities for sellers and enhances our ability to serve complementary consumer segments," said eBay Chief Executive Officer John Donahoe.
On Wednesday, ahead of the news, shares of eBay closed at $14.31, down 0.5%, and Gmarket shares closed at $19.96, up 3.2%, on the Nasdaq.
The transaction, though still dependent on final Korean antitrust clearance, is expected to close in the second quarter of this year, the companies said in a joint press release.
The resulting combination "establishes an exceptionally strong leadership position for eBay in one of the world's largest, most dynamic and innovative e-commerce markets," said Donahoe.
Read more at MarketWatch
Under the terms of the deal, San Jose, Calif.-based eBay will make a cash tender offer of $24 per share for all outstanding shares of Gmarket common shares and American Depository Shares.
The purchase price will be up to $1.2 billion if all outstanding shares are tendered. EBay said it has already clinched agreements to purchase at least 67% of the Gmarket's shares.
Ebay will combine the South Korean e-commerce Web site with its own existing Korean marketplace business, Internet Auction Company.
"This deal creates strong operational synergies between the two market leaders, offering more opportunities for sellers and enhances our ability to serve complementary consumer segments," said eBay Chief Executive Officer John Donahoe.
On Wednesday, ahead of the news, shares of eBay closed at $14.31, down 0.5%, and Gmarket shares closed at $19.96, up 3.2%, on the Nasdaq.
The transaction, though still dependent on final Korean antitrust clearance, is expected to close in the second quarter of this year, the companies said in a joint press release.
The resulting combination "establishes an exceptionally strong leadership position for eBay in one of the world's largest, most dynamic and innovative e-commerce markets," said Donahoe.
Read more at MarketWatch
Apple closes first quarter without Jobs at helm
(MarketWatch) -- When Apple Inc. delivers its next earnings report later this month, it will mark a milestone of sorts: the company's first reporting period without Steve Jobs, its co-founder and chief executive.
Day-to-day management is in the hands of Chief Operating Officer Tim Cook, who has overseen several new product introductions but also has to cope with a severe economic downturn that has crimped demand for PCs and other high-tech products.
Apple is scheduled to deliver results for its second fiscal quarter on April 22. Although Jobs remains chief, he went on a medical leave of absence earlier this year that's scheduled to end in June. His health became a matter of concern last year when his appearance at a trade show set off rumors that the cancer he successfully battled in 2004 may have returned.
"They seem to still be focusing on strategy and execution," said Ashok Kumar, who covers Apple for Collins Stewart.
So far, investors seem to have kept their faith in Cook and company. Since Jan. 14, when Jobs announced he would be stepping aside to handle his health issues, Apple's stock has climbed more than 35% to $115 a share -- reaching its highest levels since last September.
Read more at MarketWatch
Day-to-day management is in the hands of Chief Operating Officer Tim Cook, who has overseen several new product introductions but also has to cope with a severe economic downturn that has crimped demand for PCs and other high-tech products.
Apple is scheduled to deliver results for its second fiscal quarter on April 22. Although Jobs remains chief, he went on a medical leave of absence earlier this year that's scheduled to end in June. His health became a matter of concern last year when his appearance at a trade show set off rumors that the cancer he successfully battled in 2004 may have returned.
"They seem to still be focusing on strategy and execution," said Ashok Kumar, who covers Apple for Collins Stewart.
So far, investors seem to have kept their faith in Cook and company. Since Jan. 14, when Jobs announced he would be stepping aside to handle his health issues, Apple's stock has climbed more than 35% to $115 a share -- reaching its highest levels since last September.
Read more at MarketWatch
Tuesday, April 14, 2009
GE’s 72% Post-Sherin Bounce Shifts Focus to Industrial Profit
(Bloomberg) -- General Electric Co.’s 72 percent stock surge since Chief Financial Officer Keith Sherin went on television to debunk fears of a GE Capital “time bomb” adds pressure on non-financial units to deliver profits this week.
GE now is being valued more in terms of its operations and earnings power “as opposed to Armageddon or worst-possible scenarios,” said Mark Demos, an analyst in Minneapolis for Fifth-Third Asset Management, whose parent Fifth Third Bancorp held 8 million shares as of Dec. 31. “People are still expecting Energy Infrastructure to grow in 2009.”
First-quarter earnings per share may have fallen by more than half as the recession and credit crunch hurt profit at the GE Capital, health-care and media divisions, according to analysts’ estimates ahead of the April 17 report. GE last month sank to $5.73 in intraday trading, the lowest since 1991, recovering only after Sherin took to the company-owned CNBC network on March 5.
Sherin, 50 and CFO since 1998, helped assuage investors’ concerns and followed up with a six-hour meeting on March 19 to provide the fullest look yet at GE Capital’s holdings and risks ranging from overdue consumer credit-card accounts to plunging vales for commercial real estate. He told them GE Capital will at least break even this year under the Federal Reserve’s worst- case scenario and isn’t likely to need more outside capital.
“The stock is, you could argue, being completely driven by the worries of GE Capital along with the financial sector,” said Deane Dray, a multiple-industry analyst at FBR Capital Markets in New York who doesn’t currently rate the stock. “This will be the first opportunity that investors will get to recalibrate where the industrial side of GE is, and how it has been operating in this very tough environment. It’s not hard to imagine the news is going to be fairly difficult for them.”
Profit Forecast
Profit from continuing operations at Fairfield, Connecticut- based GE declined to 21 cents a share from 44 cents in the year- earlier period, based on the average estimate from 13 analysts in a Bloomberg poll. The results will be the first since GE stopped giving per-share earnings guidance in December.
Multiple milestones fell during the quarter: Chief Executive Officer Jeffrey Immelt and GE’s board cut the century- old dividend for the first time since 1938 to preserve cash, and ratings companies knocked down the top-AAA rating for the first time in decades. The dividend cut is effective with the third- quarter payment.
Even with the jump since Sherin’s appearance, GE shares have lost two-thirds of their value in 12 months, more than drops of 37 percent in the Standard & Poor’s 500 stock index and 58 percent in the S&P 500 Financials index. GE declined 62 cents to $11.51 yesterday in New York Stock Exchange trading.
Executives declined to comment before the earnings statement, spokesman Russell Wilkerson said.
GE Capital
GE Capital accounted for 38 percent of the parent company’s $182.5 billion in revenue and 43 percent of its $18.1 billion profit from continuing operations in 2008. Sherin told investors March 19 the unit would post a profit in the first quarter and at least break even for the full year. Under two of three economic scenarios outlined for the unit last month, tax credits would provide at least $1.4 billion of the unit’s annual profit this year.
Nigel Coe of Deutsche Bank AG in New York is among analysts who are forecasting a pretax loss for GE Capital, which reports net income, along with “single-digit” profit increases at the Energy Infrastructure segment. He rates the stock a “hold.”
GE Energy Infrastructure, the world’s largest power-plant equipment and service provider, is having a “very strong” quarter, Sherin said March 19. GE Energy continued to post orders in the quarter, including a $1 billion order for gas turbines from companies in Saudi Arabia.
GE now is being valued more in terms of its operations and earnings power “as opposed to Armageddon or worst-possible scenarios,” said Mark Demos, an analyst in Minneapolis for Fifth-Third Asset Management, whose parent Fifth Third Bancorp held 8 million shares as of Dec. 31. “People are still expecting Energy Infrastructure to grow in 2009.”
First-quarter earnings per share may have fallen by more than half as the recession and credit crunch hurt profit at the GE Capital, health-care and media divisions, according to analysts’ estimates ahead of the April 17 report. GE last month sank to $5.73 in intraday trading, the lowest since 1991, recovering only after Sherin took to the company-owned CNBC network on March 5.
Sherin, 50 and CFO since 1998, helped assuage investors’ concerns and followed up with a six-hour meeting on March 19 to provide the fullest look yet at GE Capital’s holdings and risks ranging from overdue consumer credit-card accounts to plunging vales for commercial real estate. He told them GE Capital will at least break even this year under the Federal Reserve’s worst- case scenario and isn’t likely to need more outside capital.
“The stock is, you could argue, being completely driven by the worries of GE Capital along with the financial sector,” said Deane Dray, a multiple-industry analyst at FBR Capital Markets in New York who doesn’t currently rate the stock. “This will be the first opportunity that investors will get to recalibrate where the industrial side of GE is, and how it has been operating in this very tough environment. It’s not hard to imagine the news is going to be fairly difficult for them.”
Profit Forecast
Profit from continuing operations at Fairfield, Connecticut- based GE declined to 21 cents a share from 44 cents in the year- earlier period, based on the average estimate from 13 analysts in a Bloomberg poll. The results will be the first since GE stopped giving per-share earnings guidance in December.
Multiple milestones fell during the quarter: Chief Executive Officer Jeffrey Immelt and GE’s board cut the century- old dividend for the first time since 1938 to preserve cash, and ratings companies knocked down the top-AAA rating for the first time in decades. The dividend cut is effective with the third- quarter payment.
Even with the jump since Sherin’s appearance, GE shares have lost two-thirds of their value in 12 months, more than drops of 37 percent in the Standard & Poor’s 500 stock index and 58 percent in the S&P 500 Financials index. GE declined 62 cents to $11.51 yesterday in New York Stock Exchange trading.
Executives declined to comment before the earnings statement, spokesman Russell Wilkerson said.
GE Capital
GE Capital accounted for 38 percent of the parent company’s $182.5 billion in revenue and 43 percent of its $18.1 billion profit from continuing operations in 2008. Sherin told investors March 19 the unit would post a profit in the first quarter and at least break even for the full year. Under two of three economic scenarios outlined for the unit last month, tax credits would provide at least $1.4 billion of the unit’s annual profit this year.
Nigel Coe of Deutsche Bank AG in New York is among analysts who are forecasting a pretax loss for GE Capital, which reports net income, along with “single-digit” profit increases at the Energy Infrastructure segment. He rates the stock a “hold.”
GE Energy Infrastructure, the world’s largest power-plant equipment and service provider, is having a “very strong” quarter, Sherin said March 19. GE Energy continued to post orders in the quarter, including a $1 billion order for gas turbines from companies in Saudi Arabia.
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