Financial Mines

News and notes from the business reporters for the Connecticut Media Group.
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Sikorsky sales down 7 percent as military cuts weigh on profits

Tuesday, April 23, 2013 by:Rob Varnon
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Sikorsky Boeing JMR conceptual rendering. Contributed art.

Sikorsky announced during the first quarter it will team with Boeing to go after the U.S. military’s joint multi-role helicopter contract Contributed art.

Stratford-based Sikorsky Aircraft actually delivered more helicopters in the first quarter of this year than a year ago, but sales revenue was down 7 percent to $1.24 billion, the aircraft maker’s parent corporation reported Tuesday.

United Technologies, the parent of Sikorsky, Pratt & Whitney and several of the most recognized industrial and aerospace brands in the world, reported combined  net income rose 7 percent of $1.3 billion, or $1.39 per share, from $1.2 billion, or $1.31. UTC said much of its gains came from its commercial business and it expects reductions in military spending to affect its defense business going forward.

Sikorsky delivered 30 military helicopters in the quarter, down 4 from last year, but doubled its commercial craft deliveries to 10 from a year ago. The helicopter maker’s margin on its massive contract with the Pentagon for Black Hawks has been reset, according to the company, as part of sequestration.

In the first quarter, Sikorsky took $5 million in restructuring costs and, while its operating profit was $90 million in the quarter, that reflects a 32 percent drop from a year ago.

Shares of UTC lost 78 cents to finish the day at $92.86 Tuesday.

 

Categories: Defense, Sikorsky, United Technologies, Wall Street

March home sales flat as prices flirt with income threshold

Monday, April 22, 2013 by:Rob Varnon
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PropertyRoundsLogoThe National Association of Realtors reported Monday that sales of existing homes were slightly down in March, compared to February, but up more than 10 percent from a year ago.

NAR said there has been a 25 percent increase in people out shopping for homes, but a decrease in the number of homes on the market is pressuring prices upward. In fact, they were up 12 percent from a year ago.

It’s just one month’s worth of data, and most experts are saying they see this as a pause before the big push into spring and summer for housing, but we couldn’t help but dig up a few numbers of our own to see where housing prices sit with income levels.

While interest rates are at all time lows, allowing people to maybe buy more house than they used to, we decided to compare what the median household income could afford for a home using a conservative, but established method, (the old you can afford a mortgage at 3-times your income) versus what the actual median sales prices are.

Here’s what we found.

Nationally, the median sales price for a home was $184,300. The national median income is about $50,443, which means the median family could afford up to buy a $188,189 home provided they have a 20 percent down payment.

In Connecticut, the median sales price for a home has been running around $240,000 while the median income is about $66,748. Which means the median family could buy a house priced at $248,244 if they have 20 percent to put down.

Both state and national sales prices are awfully close to that key income threshold that could come into play as people think about what they can afford and whether they want to take out a loan. But whether that’s playing into the market right now, or will, remains to be seen.

 

Categories: Credit markets, Economy, Real Estate

Roofing and kitchens lead home improvement spending in America

Friday, April 19, 2013 by:Rob Varnon
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The U.S. Census Bureau reported this week, while the housing market was tanking, many Americans were upgrading their domiciles. And more than 60 percent was done by pros.

Between 2009 and 2011, Americans spent about $359 billion on home repairs. Here’s a list of where Americans spent the most money.

Categories: General, Real Estate

Connecticut’s cities bear brunt of unemployment

Friday, April 19, 2013 by:Rob Varnon
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Unemployment rates in Connecticut’s cities are more than double those of many suburbs as the slow pace of job recovery continues to lag in the state’s urban centers.

Of the state’s major cities, Stamford had an unemployment rate of 7 percent, while Hartford had more than double that rate at 15.1 percent. The City of Danbury registered an unemployment rate of 6.6 percent.

The State Labor Department released the March unemployment numbers for the 169 municipalities Friday. The Danbury metro region had the lowest rate as a region, but not a single of the towns in that area had unemployment rates below 6 percent. According to the report, 24 municipalities reported unemployment rates below 6 percent, with Union and Avon both solidly below 5 percent. This report is not indicative of where people work. Instead, it measures whether residents of these communities have jobs.

Here’s the list of lowest unemployment rates and highest. If you’re town isn’t on either list it means, it wasn’t among the highest or it didn’t drop below 6 percent.

Lowest

  • Union 4.4 percent
  • Avon 4.8 percent
  • Woodbridge 5.2
  • Glastonbury 5.2
  • Willington 5.4
  • Chester 5.4
  • New Canaan 5.5
  • Ridgefield 5.5
  • Weston 5.6
  • Simsbury 5.6
  • Easton 5.7
  • Wilton 5.7
  • Haddam 5.7
  • Hebron 5.7
  • Colebrook 5.7
  • Roxbury 5.7
  • Washington 5.7
  • Darien 5.8
  • Greenwich 5.8
  • Madison 5.8
  • Salisbury 5.8
  • Orange 5.8
  • Kent 5.8
  • Tolland 5.9

Highest

  • Hartford 15.1 percent
  • Waterbury 13.1
  • Bridgeport 12.5
  • New Haven 11.6
  • New Britain 11.3
  • New London 11.3

 

Categories: Economy

Connecticut gained 2,600 jobs in March, unemployment rate holds at 8 percent

Thursday, April 18, 2013 by:Rob Varnon
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The State Labor DepartmentWelding reported a gain of 2,600 jobs in March, with strong showings in construction and health care.

Employers added 2,900 construction jobs and more than 2,000 jobs in health care and social services. The state’s unemployment rate held at 8 percent, still higher than the national rate of 7.6 percent.

While it marks a positive turn from February’s loss of 5,700 jobs, total employment in the state is up just 1,000 from a year ago and the labor force continued to shrink as the unemployed remain discouraged and the state continues to get hit with retirement.

The key financial services sector shed 500 jobs and manufacturing lost 400. Retail and office workers suffered the most loss of jobs, each sector losing more than 2,000, according to the report.

Locally, the Bridgeport-Stamford area gained the most jobs in the month, adding 1,200 jobs, while Danbury posted a gain of 100.

 

Categories: Economy, Labor

People’s earnings slip 8 percent in first quarter

Thursday, April 18, 2013 by:Rob Varnon
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PBCTBridgeport-based People’s United Financial said lower interest rates and a drop in bank fees lowered profits in the first quarter compared to a year ago, despite increased lending activity.

People’s reported net income was down 8 percent to $52.5 million, or 16 cents per share, from $57.3 million, or 17 cents per share, a year ago.  Shares in People’s were off 10 cents to $12.70 in morning trading on the Nasdaq.

“In the first quarter of 2013, we continued to grow our franchise and upgrade our capabilities while efficiently deploying capital,” Jack Barnes, president and CEO, said in a press release. “In what is typically a seasonally slower quarter for loan growth, we saw the benefits of our expanded footprint and strengthened product line-up, which resulted in annualized linked quarter loan growth of 8 percent.”
The Board of Directors of People’s United Financial voted to increase the common stock dividend to an annual rate of 65 cents per share. Based on the closing stock price on April 17, 2013, the dividend yield on People’s United Financial common stock is 5.1 percent. The quarterly dividend of 16.25 cents per share is payable May 15, 2013 to shareholders of record on May 1, 2013.
During the first quarter of 2013 the Company repurchased 11.1 million shares of People’s United Financial common stock at a total cost of $144 million. Under the existing share repurchase authorization, 22.3 million shares of common stock remain available for repurchase.

The bank’s low share price looks like a buying opportunity for it as executives confirmed they would continue to pursue share repurchases using the large amount of cash on People’s balance sheet and given the low interest rate environment.

People’s also said it would continue to work to control costs.

Categories: Banking, General, Wall Street

GE reports first quarter results Friday

Thursday, April 18, 2013 by:Rob Varnon
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General Electric will report its first quarter results Friday morning before the opening of the market.
The Fairfield-based multi-nationa saw its shares rise steadily last year and into this one, going from a low of less than $19 to more than $22.
The presentation will be webcast on GE’s site, www.ge.com.

Categories: GE

Chase brings tech-aided banking format to New Haven

Wednesday, April 17, 2013 by:Rob Varnon
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Chase unveils its newest branch in New Haven

Chase unveils its newest branch in New Haven

Chase isn’t just relying on teller windows it’s putting tech in the hands of their customers and bankers, who wander the floor in their newest branches like sales associates working retail.

Some have even said Chase has co-opted the Apple Store model for its latest, tech-infused, branches, the first of which opened in Connecticut in New Haven on 149 Amity Road. Those of us in the Mines who are a little older immediately hoped that the new kiosks use HAL like voices when you use them and ask, “What are you doing?”*

“We’ve spent the last few months meeting folks in the community and preparing for the Amity Road location, so we’re thrilled to be officially opening our doors,” said Matthew Cummings, Chase Woodbridge Branch Manager. “Our new build branch format is all about choice – offering customers face-to-face assistance from bankers, or electronic and paperless options to conduct transactions.”

Besides bankers with tablets, the new branch features self-service kiosks providing ATM-like services with check cashing, custom denomination withdrawals, credit card bill pay, prepaid cards and money orders. The kiosks are reminiscent of airline kiosks you see at airports. If Chase’s kiosks don’t require every customer to flag down a banker for assistance, the bank will be doing better than the airlines.

The new branch is the 52nd Chase branch in the state. Eight employees were hired for it and they will staff the branch from 8:30 a.m. to 6 p.m., Monday through Friday with additional hours on Saturday.

*Reference is to 2001 A Space Odyssey.
An earlier version of this post mistakenly said Chase was going teller-less. That’s not the case the bank still has tellers and teller windows. The Mines regrets the error.

Categories: Banking
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