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Apr 29, 2015

BlackRock CEO’s long term view is ‘healthy’: Eaton chief

By Lewis Krauskopf

(Reuters) – As his company gets closer to telling shareholders its plan for allocating cash, Eaton Corp Chief Executive Alexander Cutler said on Wednesday a recent call by a prominent asset manager to think long-term represented a “healthy voice.”

BlackRock Inc Chief Executive Officer Larry Fink earlier this month sent a letter to CEOs of the Standard & Poor’s 500 companies urging them to take a long-term approach to create value for shareholders or risk losing his firm’s support. Fink asked the companies to avoid short-term pressures created by the increasing activist shareholder activity of recent years.

Apr 29, 2015

ISS backing of Trian nominees not a surprise, DuPont director says

April 29 (Reuters) – The lead director of DuPont said
on Wednesday it was not a surprise that proxy advisory firm ISS
recommended shareholders vote for two nominees backed by
activist Trian Fund Management.

ISS on Monday recommended that shareholders vote in favor of
Trian co-founder Nelson Peltz and another nominee, although it
did not recommend two others. DuPont’s annual shareholder
meeting is set for May 13.

Apr 23, 2015

Market darling 3M sees stock stumble with lowered outlook

By Lewis Krauskopf

(Reuters) – For two years, 3M Co has been among the best bets in industrial stocks, with analysts swooning over its financial performance and desire to return cash to shareholders. That momentum stalled on Thursday.

The maker of Post-it notes, adhesives and other products for various industries cut its profit forecast by about 2.5 percent for the year, as it posted a slight decline in first-quarter net profit.

Apr 23, 2015

3M cuts full-year profit outlook as strong dollar bites sales

By Lewis Krauskopf

(Reuters) – U.S. manufacturer 3M Co (MMM.N: Quote, Profile, Research, Stock Buzz) posted slightly lower quarterly net income on Thursday and cut its full-year profit forecast as the strong dollar bites into sales more than it previously forecast.

3M, a maker of adhesives, abrasives and other products for a variety of industries, reported a 6.5 percent reduction from the stronger dollar — a sharper first-quarter hit than reported by other industrials such as Honeywell International Inc (HON.N: Quote, Profile, Research, Stock Buzz) and United Technologies Corp (UTX.N: Quote, Profile, Research, Stock Buzz). Strength in the dollar reduces foreign sales when they are translated back into the greenback.

Apr 21, 2015

Sikorsky sputters as United Tech nears decision on spinoff

By Lewis Krauskopf

(Reuters) – United Technologies Corp is nearing a decision on whether to spin off its Sikorsky helicopter unit as the business is struggling with its financial performance.

United Tech Chief Executive Officer Greg Hayes said on Tuesday he expects the company to finish its review of strategic options for Sikorsky by midyear. The review was announced in March.

Apr 21, 2015

Strong dollar weighs on United Tech sales, but profit rises

By Lewis Krauskopf

(Reuters) – United Technologies Corp (UTX.N: Quote, Profile, Research, Stock Buzz) posted a higher-than-expected quarterly profit on Tuesday, helped by gains in its unit selling climate control and security systems for buildings, even as a stronger dollar weighed on sales.

The U.S. conglomerate’s sales slipped 1.4 percent to $14.54 billion, shy of Wall Street’s target of $14.88 billion. Foreign currency swings hurt sales by 4 percentage points, with sales otherwise growing 3 percent on an organic basis.

Apr 20, 2015

GE in talks to sell lending, leasing portfolio to Wells Fargo: source

By Mike Stone and Lewis Krauskopf

(Reuters) – General Electric Co is in early-stage talks with Wells Fargo & Co about selling its entire $74 billion U.S. commercial lending and leasing (CLL) portfolio to the bank, according to a source familiar with the situation.

The discussions with Wells Fargo started just last week and other parties may also hold talks with GE about buying the entire U.S. CLL portfolio, the source said. GE is also exploring selling the U.S. CLL portfolio piecemeal and could decide to break the business up, the source added.

Apr 17, 2015

Strong dollar hit to GE, Honeywell may bode poorly for other industrials

By Lewis Krauskopf

(Reuters) – General Electric Co (GE.N: Quote, Profile, Research, Stock Buzz) and Honeywell International Inc (HON.N: Quote, Profile, Research, Stock Buzz) said on Friday they will take steps to cushion the impact of a stronger dollar, which hurt first-quarter results at both companies.

Indeed, the impact of currency shifts on U.S. companies will be highlighted further next week with quarterly reports from United Technologies Corp (UTX.N: Quote, Profile, Research, Stock Buzz), which already slashed its 2015 financial forecast in January over currency worries, as well as from 3M Co (MMM.N: Quote, Profile, Research, Stock Buzz) and Illinois Tool Works Inc (ITW.N: Quote, Profile, Research, Stock Buzz).

Apr 17, 2015

GE industrial first-quarter profit rises, revenue falls on stronger dollar

By Lewis Krauskopf

(Reuters) – General Electric Co’s (GE.N: Quote, Profile, Research, Stock Buzz) quarterly industrial earnings rose 9 percent, helped by cost cuts that expanded profit margins, as the U.S. conglomerate banks on manufacturing of jet engines, turbines and other big-ticket products as it unloads most of its finance business.

Revenue fell 1 percent in its industrial segments, hurt by a $950 million hit from the stronger dollar, GE said on Friday. Stripping out the currency drag and the impact from deals, sales rose 3 percent.

Apr 17, 2015

GE industrial 1st-qtr profit rises, revenue falls on stronger dollar

April 17 (Reuters) – General Electric Co’s quarterly
industrial earnings rose 9 percent, helped by cost cuts that
expanded profit margins, as the U.S. conglomerate banks on
manufacturing of jet engines, turbines and other big-ticket
products as it unloads most of its finance business.

Revenue fell 1 percent in its industrial segments, hurt by a
$950 million hit from the stronger dollar, GE said on Friday.
Stripping out the currency drag and the impact from deals, sales
rose 3 percent.

    • About Lewis

      "I help coordinate coverage of healthcare companies for Reuters in the United States. I also cover health insurers, pharmacy benefit managers, generic drugmakers and pharmaceutical companies."
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