Financial Mines

News and notes from the business reporters for the Connecticut Media Group.
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Archive for April, 2012

Kaman profits off from a year ago

Monday, April 30, 2012 by:Rob Varnon
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Lagging aerospace sales dampened profits at Bloomfield-based Kaman Corp. in the first quarter.

The company reported results after the market closed Monday. Its shares lost 91 cents to close at $34.38 on the New York Stock Exchange.

While the company said net sales climbed 2.5 percent to $388.7 million in the most recent quarter, net operating income was $17.1 million, a drop of 29 percent from last year when it reporte3d $24.5 million in operating income. Diluted earnings per share were also lower at 36 cents compared to 47 cents a year ago. This quarter included a 7 cent benefit to earnings from a life insurance policy on a key executive who passed away last year.

The company, which is a key subcontractor to Sikorsky Aircraft and other defense and aerospace corporations, said fewer Sikorsky Black Hawk requirements lowered revenue in the quarter. But the larger issue involved its joint programmable fuze program for the U.S. Air Force. Kaman makes the fuses used to arm and set bomb detonations in flight. The company is in its eighth contract extension with the Air Force, but noted high tolerance testing parameters are expected to delay the program periodiacaly, which happened this time around. Still the company said it shipped more JPF than a year ago.

Kaman will hold a conference call with analysts on Tuesday.

A key to Kaman going forward is diversifying its business and the expansion of the use of unmanned helicopters. Kaman has a remote controlled helicopter delivering supplies in Afghanistan already and could see demand for that aircraft rise in the future.

Up this week: Guns, wrestling, soundsystems, IT and electricity

Friday, April 27, 2012 by:Rob Varnon
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Earnings season continues this coming week of April 30 to May 4, kicking off with Harman International Industries Inc. on Monday.

Harman, which provides the sound inside many of the world’s premium cars, has continued to rack up contracts and roll out innovation in the last year. With auto-sales humming along, there should be some expectation of sweet sounds coming from this company.

Bloomfield-based aerospace and defense company Kaman also reports. This is a company with a plan to expand and move up a peg in the echelon of aerospace corporations.

On Tuesday, Fairfield’s own gun maker, SturmRuger fires off its earnings after a successful, year-long promotional campaign to raise funds for the NRA. Ruger gave $1 to the National Rifle Association for every gun it sold.

With the NRA so actively politicking against Obama, let’s hope it doesn’t backfire on Ruger. There are Democrats who pack heat as well.

That aside, it only seems fair that Ruger and other gun makers fund the organization. The NRA’s constant message that Obama will take away people’s guns has contributed to strong sales for the industry, even as no moves have been made to curtail gun ownership rights. The NRA response has been, a lame-duck Obama will somehow marshal Congress to repeal the Second Amendment.

Despite the political climate, Ruger’s shares have surged and the company’s production and roll out of a new affordable rifle and its continued success demands some admiration for its business model.

The biggest day of the week will be Thursday. Insurance giant Cigna reports alongside the new look Northeast Utilities, fresh off of completing the NSTAR merger. Also reporting, Gartner, the source for information technology trends and research and Stamford’s WWE, which has been fighting its balance sheet of late. But always bet on a grappler in a fight.

Then the week closes out with United Illuminating. A company full of gas these days. The key for UI going forward is its SCG and CNG businesses,which are expected to grow by converting oil-heat customers into gas-heat customers. They have an aggressive plan.

Winter reprieve on utility bills ends May 1

Friday, April 27, 2012 by:Rob Varnon
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Beginning May 1, utilities can turn the lights and gas off on people who haven’t paid their bills and the companies start pressing for people to set up payment plans.

The amount of accounts in arrears can be large. Coming out of the winter of 2008/2009, United Illuminating Co. and Connecticut Light & Power Co. reported a combined 300,000 customers who were 60 days or more late on their bills and would be shut off unless they made some effort to set up payments.

If you find yourself in this situation, here are some numbers to call to try to work out a payment plan:

  • UI: 800-442-5004
  • SCG: 866-659-4140
  • CNG: 860-727-3034 or 860-727-3555
  • CL&P: 800-286-200
  • Yankee Gas 800-989-0900

Still no contract between AT&T and CWA

Thursday, April 26, 2012 by:Rob Varnon
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The Communcations Workers of America, one of the major players in the 99 Power movement, is still locked in negotiations for a new contract covering the benefits and rights of about 4,000 Connecticut AT&T workers.

The contract between the union and the Texas-based telecommunications giant expired more than 18 days ago.

Former Latex International HR exec gets four years in the pen

Thursday, April 26, 2012 by:Rob Varnon
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A former human resources head at Shelton-based Latex International who pleaded guilty to embezzling $1.75 million was sentenced to 4 years in federal prison and will lose interest in three Vermont residences, six motorcycles and other vehicles, jewelry and furnishings in order to make restitution.

U.S. District Judge Stefan R. Underhill in Bridgeport sentenced Newtown resident and former Latex International executive Joanne Osmolik, 52, on Thursday.

According to court documents, Osmolik and former Latex International Chief Executive Kevin Coleman conspired to embezzle a total of $3.5 million from the company, by charging major purchases on corporate credit cards and fraudulent expense reports.

Coleman pleaded guilty in February and awaits sentencing.

The company told the sentencing judge the fraud forced it to layoff 49 employees.

“Osmolik and her co-conspirator recklessly pillaged Latex International purely for their own benefit, while having no regard for the employees, customers and shareholders of our company who suffered as a result of their actions,” said Latex International President and Chief Executive Officer Dave Fisher, in a prepared statement. “It has taken the new management team several years to pull itself out of the painful financial morass that these criminals caused our company. We are pleased they have finally been brought to justice. I am very grateful for the diligent efforts of the U.S. Attorney, Federal Bureau of Investigation and the Internal Revenue Service for all their assistance throughout this process,.”

White House says insurers owe Conn. residents $14.5 million

Thursday, April 26, 2012 by:Rob Varnon
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The White House, citing a Kaiser Family Foundation report, said 212,106 Connecticut residents will receive $14.5 million in rebates from health insurance companies that failed to spend at least 80 percent of premiums collected on health care and related bills.

Small businesses and the self-employed are expected to make up a large portion of this field who are to get rebates by Aug. 1.

For information on the Kaiser Foundation report, visit:

http://www.kff.org/healthreform/8305.cfm

CT Tax refund cards continue to trend negative

Thursday, April 26, 2012 by:Rob Varnon
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So, we’ve had some responses to Connecticut’s surprise decision to have Chase issue debit cards instead of cutting checks for state tax refunds. None have been positive.
There are ways to avoid this next year:
Go to your lawmaker and demand a change.
Sign up for direct deposit.
Claim more deductions so you won’t be owed money, though you will probably then, owe money. (Careful with this strategy, accountants note those who do this must be very disciplined and save money in anticipation of paying taxes when filing)
And finally, move.

Cigna draws the ire of the 99

Wednesday, April 25, 2012 by:Rob Varnon
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Working Families Connecticut called The Mines today to tell us they’ll be at Cigna’s annual meeting, today at 3 p.m. at the Bushnell to protest the insurers’ Washington lobbying as part of the 99 Power movement.
Cigna spent about $1.22 million in lobbying Congress in 2010, according to the website Open Secrets.
The 99 Power movement, an outgrowth of Occupy Wall Street, is targeting the annual meetings of the nation’s largest corporations to try to get corporate money out of politics and to address the growing wealth gap in the nation.

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