GEs focus on core manufacturing operations begins to pay off profit rises

NEW YORK, N.Y. – General Electric Co.’s net income rose 49 per cent in the third quarter to $3.49 billion as its recovery from the 2008 financial crisis continues.GE earned 33 cents per share in the quarter, up from 22 cents per share a year earlier. On an adjusted basis, GE earned 36 cents per share, matching the expectations of analysts surveyed by FactSet.Revenue rose $1 billion, or 3 per cent, to $36.35 billion. But analysts were looking for revenue of $36.95 billion and GE shares fell nearly 2 per cent in premarket trading.During last year’s third quarter the company repaid $3 billion to Warren Buffett’s Berskshire Hathaway for its investment in GE during the depths of the financial crisis. Compared with last year’s adjusted results, GE’s earnings per share rose 13 per cent.GE’s size and global scope gives it a unique perspective on economic growth around the world. On Friday, CEO Jeff Immelt said the U.S. economic recovery is slow, and being held back by political and fiscal uncertainty. The European economy continues to struggle. Immelt described growth in Asia and other resource-rich regions as “slower but stable.”He said China, Russia, Latin America and the Middle East will have “decent” opportunities for the rest of this year and next year.“Europe is going to be a grind,” he said.Immelt said globally the picture next year will look much like it did this year, with pockets of weakness and strength. The one major variable, he said, was the so-called fiscal cliff looming in the U.S. — the automatic tax hikes and spending cuts that will kick in at the beginning of next year unless Congress can agree on a new budget plan. He does expect the standoff to get resolved “one way or another.”GE, based in Fairfield, Conn., was shaken during the financial crisis when investors began to worry that its enormous banking arm, GE Capital, would fail. It is now paring down GE Capital and other non-industrial businesses such as commercial real estate.GE said Friday it accelerated its efforts to reduce assets in GE Capital to $425 billion by the end of this year, a move applauded by investors. That lowered the company’s revenue forecast, however. Revenue is now expected to rise 3 per cent for the year instead of 5 per cent.GE is increasingly focused on its industrial operations such as manufacturing jet engines, refrigerators and providing equipment and services to energy companies.Revenue from the industrial divisions rose 8 per cent in the third quarter and is up 10 per cent so far this year.Orders for new equipment and services were down 5 per cent compared with last year, mainly because wind turbine orders have fallen dramatically because a key U.S. federal subsidy for wind power is scheduled to expire at year end. Excluding the dip in wind turbine orders, the company’s industrial orders were up 4 per cent.The company’s energy infrastructure and transportation divisions posted the strongest growth. Energy infrastructure profits rose 13 per cent and transportation profits rose 35 per cent.The relatively weak global economy is forcing GE to cut back, though, to protect profits. The company said it is on track to cut $2.8 billion this year as part of its “simplification” efforts.This is helping profit margins. GE’s operating profit margin grew to 14.4 per cent from 13.7 per cent in the third quarter.Follow Jonathan Fahey on http://twitter.com/JonathanFahey . by News Staff Posted Nov 2, 2012 6:28 am MDT AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to RedditRedditShare to 電子郵件Email GE’s focus on core manufacturing operations begins to pay off, profit rises 49 pct. read more

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Brock charts its future with provincial mandate agreement

Last week Brock University submitted a proposal for a strategic mandate agreement (SMA) to the province’s Ministry of Training, Colleges and Universities (MTCU).In late June, MTCU requested that every college and university in Ontario prepare a document that would articulate the mandate and vision of each institution as well as identify three distinct priority areas and explain how they align with government objectives.Brock’s proposed SMA identifies what differentiates the University from other post-secondary institutions in the province. This includes conducting transdisciplinary research with community partners to address vital issues of the communities served by the University, and meeting the learning needs of students through different educational experiences and styles of teaching and learning.At Brock, the SMA exercise was the culmination of a sustained process of integrated strategic planning that has been ongoing for the past two years. In a sense, it is helping to crystallize and refine strategic planning already underway at the University.“The actions we put forth in this proposal can be seen as being part and parcel of an implementation plan of our strategic plan that we’ve been working on for some time,” says Murray Knuttila, Provost and Vice-President, Academic.The MTCU asked colleges and universities to outline a strategic mandate; a task Knuttila notes was not difficult for Brock.“It was supposed to talk about your strengths and why these priorities are logical given your strengths and your history,” he says. “I think we articulated things we can do and I think we articulated things that are absolutely worthwhile doing.”Brock’s SMA, which is available online, includes the following three priority objectives:Serving the 21st-century learner-putting students firstEstablishing five transdisciplinary research institutes and developing new graduate and undergraduate programsBuilding a network of partnerships that promote prosperity through entrepreneurship, innovation and creativity“For priorities, our puzzle was how specific do you get?” says Knuttila. “The creation of this document was a delicate balance of articulating priorities that indicate your preparedness to take actions, but with an academic focus to them.”Senate was consulted in the preparation of Brock’s SMA and the document was reviewed by the chair of the University’s Board of Trustees on behalf of the Board. It also has the support of the Brock University Students’ Union (BUSU) and Graduate Students’ Association (GSA).Submitted plans will now be reviewed by the Minister’s office, and then forwarded on to the Higher Education Quality Council of Ontario (HEQCO) who will convene an expert panel to review the plans and make recommendations back to MTCU. read more

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