Electrical Equipment

Breakdown: California blackouts ring climate alarm

14 Oct 2019

The most technologically advanced state in the richest country on earth can’t keep the lights on. There’s plenty of blame to go around. California can fix human incompetence, foolish laws and consumer behavior – but these pale beside the challenge of climate change.

GE-style pension tweaks blend finance and fear

14 Oct 2019

Asking future retirees to cash out early from defined-benefit pensions can help close funding holes like the $27 bln one at the U.S. conglomerate. Two things could help GE get the better end of the deal: falling interest rates, and uncertainty over the success of its turnaround.

PG&E faces judicial bankruptcy brownout

10 Oct 2019

Just as the California utility cut off customers to avoid wildfire risks, a judge opened the door for creditors to seize power over its restructuring. They are offering more to fire victims, and less to equity holders. Running the agenda matters: PG&E stock fell another 30%.

GE makes its own old age a bit more comfortable

7 Oct 2019

The indebted $75 bln U.S. conglomerate’s halt on defined-benefit pensions will make 20,000 employees’ retirements less flush. CEO Larry Culp’s transfer of value from workers to investors is awkward, but necessary – it makes GE’s debt more predictable as well as more manageable.

Osram bidding war triggers flashing red lights

27 Sep 2019

Austrian sensor specialist AMS is upping its bid for the German bulb and LED maker to 4 bln euros. The 17% premium to a formal Bain-Carlyle offer will probably see off the private equity challengers. But it adds another turn to the deal’s already stretched finances.

GE’s Larry Culp is playing a bad hand well

11 Sep 2019

The CEO is selling what he can to save what he must. Ceding control of oil services firm Baker Hughes will mean a hefty writedown for the conglomerate, but it brings divestments to nearly $20 bln on his watch and reduces leverage. That buys Culp time to fix GE’s troubled core.

San Francisco’s PG&E bid has some faulty wiring

9 Sep 2019

The city is offering $2.5 bln for one of the bankrupt utility’s best assets. It might benefit Bay Area residents who effectively subsidize citizens in more fire-prone locales. But it would leave PG&E far less able to cope with future financial, political and environmental crises.

GE has more to lose from whistle-blower

15 Aug 2019

A man who warned about Bernie Madoff’s Ponzi scheme accuses the conglomerate of hiding $38 bln in losses. GE’s history of opaque reports and belated write-offs have tarnished its credibility. The stock’s 10% drop implies investors give the claims only partial credence – for now.

Worst U.S. infrastructure shortage: political will

10 May 2019

A golden spike completed the Transcontinental Railroad 150 years ago. Long-distance power lines transporting renewable energy are arguably today’s equivalent. A decade-long project nearby shows today’s problems aren’t mountains, tech or economics, but red tape and nimbyism.

Hello concentration, goodbye conglomeration

27 Nov 2018

United Technologies is splitting into three while also closing a deal that creates an aerospace-parts giant. Like DowDuPont and others, activists and a need for competitive heft leave companies little choice – though tariffs and economic concerns stole $96 bln UTC’s show.

Dow Jones ejection is least of GE’s worries

19 Jun 2018

The charter member of the iconic benchmark stock average is being replaced by drugstore chain Walgreens due to slumping profit and a withering share price. It could make CEO John Flannery’s turnaround bid harder. Investors can only hope it will spark the radical changes GE needs.

Dixons Carphone turnaround may fail to connect

29 May 2018

The electronics group’s shares fell around 20 pct after it said UK customers would spend less on stereos and phones next year. CEO Alex Baldock’s plan to sell handsets risks angering suppliers, and pressure from online retailers is growing. A recovery looks distant.

Electrolux buffeted by perfect Trump tariff storm

27 Apr 2018

The Swedish fridge maker lost a tenth of its value after operating profit almost halved in the first quarter. A rejig of its freezer factories in the U.S. was one culprit. But investors are dubious that cost cuts will enable such a global business to offset higher steel prices.

Battery-powered IPO should be handled with care

2 Mar 2018

Ganfeng Lithium is coming late to the electric vehicle party. The Chinese miner and battery maker wants to raise at least $1 bln in Hong Kong as competition to make power cells intensifies and prices are peaking. Investors will want to know it isn't just cashing out at the top.

Warning signs flash at Samsung after big quarter

13 Oct 2017

The tech group's top executive unexpectedly resigned following record-smashing forecasts for operating profit. An early lead in memory chips has fuelled blistering earnings growth at Samsung despite legal woes. But as rivals circle, a widening leadership vacuum looks worrying.

Dixons double whammy is surprise that wasn’t

24 Aug 2017

The UK electronics retailer’s shares fell 30 percent after profit guidance was cut. The main culprits, EU roaming rules and a Brexit-linked consumer slowdown, were known risks. Analysts and the company underestimated their impact. Too much faith in forecasts breeds market jolts.

Toshiba meter sale may ease chip selloff pressure

3 Mar 2017

The stricken Japanese group is mulling a sale of its power meter subsidiary for $2 bln. The proceeds are unlikely to shore up finances much. But disposing of a non-core, underperforming unit is sensible, and it may help Toshiba hold on to more of its prized chip unit.

Li Ka-shing Duet bid tests Aussie foreign dislike

16 Jan 2017

The Aussie energy firm's board is backing the tycoon's $5.5 bln takeover bid. Duet's stock is trading close to the offer. That suggests investors think the deal will pass and that Canberra's recent chest-thumping against foreign buyers like CKI on security grounds is nuanced.

Dixons Carphone’s strong year offers weak comfort

29 Jun 2016

The British electrical goods and phone seller said like-for-like sales grew 5 percent last year. Its pro-Remain boss says leaving the EU may not be disastrous. The company does look strong relative to rivals like Darty, but the outlook for consumer spending is hugely uncertain.

Hong Kong could be a black belt in green bonds

14 Jun 2016

China is pushing environmental finance, but rules and definitions are fuzzy. Hong Kong’s large pool of capital and transparent regulation give it the credentials to whip this immature market into shape. With just one green bond under its belt, however, the city has work to do.