Financial Mines

News and notes from the business reporters for the Connecticut Media Group.

Net income at Silgan misses

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Stamford-based Silgan Holdings reported net income failed to meet analysts expectations in the first quarter. The mean EPS for the consumer goods packaging company, according to a survey by FactSet Research was 39 cents a share.

Silgan reported net income of $26.1 million, or 37 cents a share for the first quarter of 2011. The company reported net income of $26.8 million, or 35 cents a share, for the same quarter a year ago.

Silgan said it had a couple of one-time costs related to recent acquisitions in the quarter but also saw an impact in its metal container shipment business, which was slower this quarter because customers adjusted their buying cycles.

The company held a conference with analysts to discuss the earnings, but barred media from accessing the live venue on Wednesday. A replay will be available on May 19.

Like much of the market, Shares of Silgan traded down on Wednesday and were off 37 cents to $45.30 in trading before noon.

Categories: General

GE share votes lift Lafley, not pretty for Avon chief

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GE filed on Monday the final tally of votes from its Salt Lake City meeting  revealing who shareholders like at the helm of the Fairfield-based giant.

Alan “A.G.” Lafley, the former Proctor & Gamble chief, was the most popular director, with 6.09 billion votes for and garnering less than 100 million against. He was the only director to have such a low against total.

He just edged out Robert J. Swieringa, an accomplished accountant and academic, who taught at Stanford, Yale and served as the dean of Cornell’s Johnson Graduate School of Management for a decade.

The dubious honor of least popular director went to Andrea Jung, chairman and chief executive officer of Avon Products Inc., who got 5.2 billion shares for 841.8 million against.

 Here’s the table from the SEC filing.

A. Election of Directors:

 

                                 
     Shares For      Shares Against      Shares Abstain      Non-Votes  
W. Geoffrey Beattie      5,717,325,631         383,106,769         43,344,740         2,116,572,066   
James I. Cash, Jr.      5,645,873,768         458,620,354         39,283,018         2,116,572,066   
Ann M. Fudge      5,980,010,414         125,446,071         38,320,655         2,116,572,066   
Susan Hockfield      5,753,374,448         352,901,081         37,501,611         2,116,572,066   
Jeffrey R. Immelt      5,820,576,981         287,746,410         35,453,749         2,116,572,066   
Andrea Jung      5,264,422,127         841,842,544         37,512,469         2,116,572,066   
Alan G. (A.G.) Lafley      6,009,125,481         94,909,446         39,742,213         2,116,572,066   
Robert W. Lane      5,693,451,078         410,460,140         39,865,922         2,116,572,066   
Ralph S. Larsen      5,687,148,399         415,960,151         40,668,590         2,116,572,066   
Rochelle B. Lazarus      5,721,498,411         384,331,125         37,947,604         2,116,572,066   
James J. Mulva      5,755,998,766         348,124,546         39,653,828         2,116,572,066   
Sam Nunn      5,561,936,241         543,866,478         37,974,421         2,116,572,066   
Roger S. Penske      5,503,458,091         569,136,352         71,182,697         2,116,572,066   
Robert J. Swieringa      6,001,616,478         102,018,837         40,141,825         2,116,572,066   
James S. Tisch      5,420,316,467         684,167,933         39,292,740         2,116,572,066   
Douglas A. Warner III      5,639,542,216         465,911,295         38,323,629         2,116,572,066   
Categories: General

Sikorsky delivers 300th Seahawk

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The 300th Sikorsky Seahawk sits on display during a ceremony Wednesday. Photo by Autumn Driscoll

Sikorsky Aircraft and the U.S. Navy celebrated the delivery of the 300th Seahawk helicopter in Stratford Wednesday.

Off the East Coast of Africa patrolling for pirates, delivering humanitarian aid in Japan and supporting NATO missions in Libya, Rear Admiral Paul Grosklags, vice commander Naval Air Systems Command, said the Seahawk has become the first responder for the U.S. Navy, which is itself more and more the nation’s first responder.

“You are kicking butt,” Grosklags said, as hundreds of workers gathered in front of rows upon rows of Seahawks in various stages of completion at the factory on Main Street.

They learned there’s a potential contract extension that would bring about 576 more helicopters to the Stratford plant.

During the ceremony, Grosklags read comments from commanders in the field expressing their appreciation for the Seahawk.

Many workers expressed pride in their work and were especially glad to hear the report from the field during this time of war.

“It’s right in front of you every day,” said one line worker, of the war, that seems to too often get lost in news about a lackluster economy, political posturing and celebrity gossip.

“It’s a big deal,” said Tom Van Nostrand, a crew chief from Ansonia, as service mechanic James Kucharski, of East Haven, agreed. The two men combined have 58 years experience at Sikorsky. They work in the hangar making sure the helicopters are ready to perform.

Sikorsky is delivering two versions of the Seahawk, the MH-60 S, called the Sierra, and the MH-60R, called the Romeo. Wednesday market the 200th Sierra delivered and the 100th Romeo.

“One hundred is a big milestone for us,” said Kucharski, of the complex Romeo.

The Romeo is a sub hunter and contains what can best be described as highly evolved electronics. The Romeos are delivered to Lockheed Martin in Oswego, where the cockpit and those additional systems are added.

The Sierra’s provide search and rescue and transportation, as well as many other functions.

Dennis Jarvi, Sikorsky vice president for Navy and Marine Corps programs, also commended the workers.
“What you do every day makes this happen,” he said.

Both Jarvi and Grosklags said it was vitally important for helicopter systems to come in on time and on budget, tasks made harder in a world of rising materials costs and constrained budgets.

But Jarvi said after the ceremony that Sikorsky has been able to control costs largely through the maturation of the United Technologies Corp.’s Ace program, designed to trim costs through efficiency and rewarding workers for finding those efficiencies.

He and other Navy officers said costs can also be controlled through long-term contracts to allow the purchase of materials over a period of time.

Rear Adm. Paul Grosklags, vice commander Naval Air Systems Command visits Sikorsky Aircraft Wednesday. Photo by Autumn Driscoll

During the ceremony, the Navy and Sikorsky announced they are beginning negotiations for an extension of a contract that could lead to 500 more helicopters for Sikorsky over the next five years.

Categories: General

Military looking to cut energy usage

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In a speech Tuesday, Deputy DefenseSec. William Lynn III called for more fuel efficiency as conflicts have become long-term. DoD will be creating energy usage plans and could be investing in newer greener tech. It will also be looking for better jet and helicopter performance, presumably.
Visit defense.gov for details

Categories: General

Hexcel shares surge Tuesday

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Shares of Stamford-based Hexcel Corp. surged more than 8 percent in morning trading as executives headed into a meeting with analysts to discuss first quarter performance.

Hexcel, the maker of composite materials and engineered products for aircraft and industrial uses, reported net income of $26.4 million, or 26 cents per share, for the first quarter of 2011. Both beat analyst estimates.

Shares in Hexcel traded as high as $22.08 near the open of the market, up from Monday’s close of $19.58 on the New York Stock Exchange. Just before 11 a.m. shares were still holding above $21.

So far, composite materials makers are reporting they have pricing power at a time when higher materials costs are worrying some industries. But Hexcel’s customer  base includes defense contractors, so a bigger concern might be government budgets going forward.

Categories: General

Hexcel to report later today

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Stamford-based Hexcel Corp., a supplier of key composite materials and engineered products to the aerospace and defense markets, is expected to report today, Monday, after the closing bell on the New York Stock exchange.

Hexcel, showed stronger earnings in the fourth quarter of 2010, and projected better earnings as commercial aviation continued a steady recovery, growth in rotor-craft related defense programs, and expectations that wind turbine sales would increase this year.

Categories: General

Sikorsky gets $3.5B Turkey contract

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Stratford-based Sikorsky Aircraft said Friday won an initial contract for a 109 helicopter deal from the Turkish Defense Industry Executive Committee.

Sikorsky is providing a variant of its Black Hawk helicopter to serve as the Turkish Utility Helicopter.

The helicopters will be assembled in Turkey by Sikorsky’s partner Turkish Aerospace Industries from from U.S. and Turkish components. The contract is valued at $3.5 billion and could expand to 600 helicopters. Sikorsky’s share is expected to top $1 billion and the contract is for 10 years and would include aftermarket service and parts.

Sikorsky is a subsidiary of Hartford-based United Technologies Corp.

More on this to follow in the business section.

Categories: General

Nukes out, gas in for GE

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While the Japanese still try to fix the dire problems at the Fukushima nuclear plant and just five days before the  the 25th anniversary marking the Chernobyl nuclear plant disaster GE executives told analysts natural gas is the fuel of choice now.

As an aside, if you’re trying to drive by corporate GE HQ in Fairfield on Tuesday, the anniversary of the Chernobyl, a group has pledged to mount a protest against nuclear power there. Last time, they managed about 6 people.

Anyway, after reporting income topped $3.6 billion in the first quarter, GE Chief Executive Officer and Chairman Jeffrey Immelt and Keith Sherin, vice chairman and chief financial officer, fielded questions for more than a half hour from analysts on subjects ranging from future regulatory oversight of the Fairfield-based corporations financial division to the future of energy.

The executives said nuclear plants are being canceled, coal remains a dubios prospect because of envrionmental concerns leaving gas turbines as the choice for power plants that are retooling or new builds. The company also touted wind and solar energy, two areas it holds prominent positions in.

For a brief moment, nuclear power looked like it would gain some momentun in the U.S.

In the first quarter, GE only sold one gas turbine unit in the U.S., but had strong sales in the Middle East, it said.

The implications for Connecticut are interesting. Connecticut manufactures many components for nuclear energy, but it also produces a variety of power products. UTC’s Pratt & Whitney division makes gas turbines.

A living room issue, however, could also arise because of this. Connecticut electricity prices are determined by the cost of natural gas, so more demand around the country and globe, could push up costs here.

Categories: General