|Bid||103.94 x 44200|
|Ask||103.98 x 100000|
|Day's Range||103.66 - 104.14|
|52 Week Range||90.85 - 121.70|
|Beta (3Y Monthly)||0.92|
|PE Ratio (TTM)||19.03|
|Earnings Date||Aug 1, 2019|
|Forward Dividend & Yield||3.80 (3.63%)|
|1y Target Est||N/A|
U.S. companies' borrowing to spend on capital investments rose 18% in May from a year earlier, the Equipment Leasing and Finance Association (ELFA) said. Companies signed up for $9.1 billion in new loans, leases and lines of credit last month, up from $7.7 billion a year earlier. "The continued low interest rate environment, coupled with solid fundamentals in the U.S. economy, provide incentive for U.S. businesses to expand and grow their operations," ELFA Chief Executive Officer Ralph Petta said.
(Bloomberg) -- Rolls-Royce Holdings Plc’s Warren East said he’s keen to lead the engine maker into a new age of electrically powered aircraft after spending years focused on costs cuts and restructuring.The CEO, recruited by Rolls from semiconductor developer ARM Holdings Plc, said his enthusiasm for leading the U.K. engineering giant is undimmed by the saga of firings, disposals and internal realignments, and that he wants to stay at the helm through a new phase of expansion and technological change.“I didn’t join Rolls-Royce to do restructuring,” East, who has been chief executive for four years next month, said in an interview at the Paris Air Show. “I’m not a turnaround person. Once you’ve made it a more competitive business you want to resume the journey of growing market share.”East took over after Rolls had been rocked by a run of profit warnings and a corruption probe. Things got worse before they got better, with the CEO saying problems were more deep-seated than he’d realized and ordering thousands of job cuts. Technical faults with the Trent 1000 engine that powers Boeing Co.’s 787 also forced the group to focus on emergency repairs when it should have been preoccupied with a production ramp-up vital to future earnings.Rolls-Royce’s margins are still behind those of other major aero-engine manufacturers and East said he needs to close that gap and make the London-based company more competitive before he can return to expansion.Electric FutureThe upheaval that would come with a switch to hybrid and electrical propulsion could play to Rolls’s advantage, the CEO said, with the “discontinuity” creating an opportunity to grab a higher market share in a wholly new market.A move away from jet propulsion had been regarded as decades away, but Airbus SE is now actively studying the introduction of an electric-hybrid design with its next narrow-body plane, and such technology has been a hot topic at this week’s aviation expo in the French capital.“A few years ago there wasn’t this noise at an air show about electric propulsion, you really had to look hard for it, if at all,” East said.Rolls put down a marker at the show with the purchase of a Siemens AG business that formed part of a venture with Airbus to build a small regional hybrid aircraft, and the CEO said the greater potential of electric planes is clear, with performance improvements of no more than 1% a year being eked out from gas turbines, compared with a 10% jump in battery energy density.East said cutting so many jobs has been tough, but that his aim is to position Rolls to be competitive for the next 50 years and beyond.“It’s obviously uncomfortable for some people who are either going to lose their job themselves, or they know somebody who is going to lose their job,” he said. “But it’s getting them to understand that we’re not some hard-man management that is just doing this so we can line the pockets of investors.”To contact the reporter on this story: Benjamin Katz in Paris at email@example.comTo contact the editors responsible for this story: Anthony Palazzo at firstname.lastname@example.org, Christopher Jasper, Andrew NoëlFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Over the past two decades, China’s Huawei Technologies Co. has come to dominate the global telecom equipment market, winning contracts with a mix of sophisticated technology and attractive prices. Its rise squeezed Europe’s Nokia Oyj and Ericsson AB, which responded by cutting jobs and making acquisitions. Now, with Huawei at the center of a U.S.-China trade war, the tide is turning.Nokia and Ericsson—fierce rivals themselves—have recently wrested notable long-term deals from Huawei to build 5G wireless networks, to enable everything from autonomous cars to robot surgery. Analysts say more could come their way as Huawei grapples with a U.S. export ban and restrictions from other governments concerned that its equipment could enable Chinese espionage.“Huawei will, for the foreseeable future, face a broader cloud of suspicion,” said John Butler, an analyst at Bloomberg Intelligence in New York. “Nokia and Ericsson are well positioned to benefit.”In May, the European companies both won 5G contracts from SoftBank Group Corp.’s Japanese telecom unit, replacing Huawei and Chinese peer ZTE Corp. Ericsson signed a similar pact in March with Denmark’s biggest phone company, TDC A/S, which had worked with Huawei since 2013 to modernize and manage its network.Other carriers, expecting government curbs on Huawei, have started removing its equipment from sensitive parts of their systems. BT Group Plc is taking Huawei out of its network core, and Vodafone Group Plc has suspended core equipment purchases from Huawei for its European networks. Deutsche Telekom AG, which has Huawei throughout its 4G system, is re-evaluating its purchasing strategy.Nokia and Ericsson are Europe’s final survivors of a merciless winnowing of more than a half-dozen telecom equipment providersAs dozens of phone companies—including those in Canada, Germany and France—plan to choose 5G suppliers in the coming months, Cisco Systems Inc. and Samsung Electronics Co. are also vying for deals. But the key beneficiaries of Huawei’s difficulties are likely to be the two Europeans, which compete directly with the Chinese company in supplying radio-access network equipment.Since last year, the Trump administration has pushed allies to bar Huawei from 5G, citing risks about state spying—allegations the company has denied. The move in May to block Huawei’s access to U.S. suppliers escalated the campaign. The company’s founder, Ren Zhengfei, now predicts the U.S. sanctions will cut its revenue by $30 billion over the coming two years.Outside the U.S., security concerns have led Australia, Japan and Taiwan to bar Huawei from 5G systems. The Chinese company also risks losing meaningful work in Europe and emerging markets where countries could follow with their own limits, according to Bloomberg Intelligence.Publicly, executives from Nokia and Ericsson have been careful not to come off as critical of Huawei. Both manufacture in China and sell gear to Chinese phone carriers, and Nokia has a big research and development presence there. Nokia says it has already been forced to shift some of its supply chain away from China to reduce the impact of tariffs imposed by the Trump administration.QuicktakeHow Huawei Became a Target for GovernmentsInstead of piling on Huawei, the European carriers have trumpeted their 5G successes, each using slightly different metrics. Ericsson claims it has the most publicly announced 5G contracts—21—while Nokia says it has raked in more commercial 5G deals than any other vendor (42). Huawei says it has signed 46 5G contracts. A spokesman for Huawei declined to comment further about its position relative to rivals.Ericsson is “first with 5G,” after building high-speed networks for companies such as AT&T Inc., Swisscom AG in Switzerland and Australia’s Telstra Corp., said Chief Technology Officer Erik Ekudden. “You see that in some markets that we are attracting more customers.”Nokia is winning 5G deals “quite handsomely,” Chief Executive Officer Rajeev Suri told Bloomberg TV on June 10.While Suri said more carriers are likely to swap out Huawei gear in countries that have announced restrictions, the situation is less clear in Europe. “We don’t know yet the impact of specific operator plans,” he said in an interview. “We also don’t know where this geopolitical thing will end up.”Nokia and Ericsson are Europe’s final survivors of a merciless winnowing of more than a half-dozen telecom equipment providers. Bloated costs, a cyclical marketplace, cash-strapped customers, and the relentless rise of Huawei—aided by access to generous Chinese state financing—helped push the likes of Canada’s Nortel Networks Corp. and Germany’s Siemens AG out of the industry.Nokia paid some $2 billion in 2013 to buy Siemens out of a joint venture established to compete against Ericsson and Huawei. Then in 2015, it spent another almost $18 billion acquiring Alcatel-Lucent to broaden its product offering after pushing through more than 25,000 job cuts in the preceding three years. Still, Huawei’s share of the $33 billion of sales in the global mobile infrastructure market surged to 31% in 2018 from 13% in 2010, IHS Markit data show.Huawei, despite its troubles, remains a potent rival. Many phone companies in Europe deem its base stations, switches and routers technologically superior. Fully excluding Huawei and ZTE from 5G would raise radio-access network costs for European phone companies by 40%, or 55 billion euros ($62 billion), the GSMA industry group predicts in an unpublished report seen by Bloomberg. Nokia and Ericsson would have to almost double production to absorb Huawei and ZTE’s business in Europe and could struggle to meet demand, the GSMA report says.Quicktake5G and EspionageBengt Nordstrom, CEO of telecom consultancy Northstream AB, says the situation is perilous for everyone in the industry, as vendors’ budgets could be hit if Huawei faces greater restrictions. “Many component suppliers are already in a tough situation,” Nordstrom said. “They need to spend a lot of money on research, and that means they need access to the entire global market.”For carriers, swapping vendors isn’t as simple as flipping a switch. It takes about two years to plan and implement such a technology shift and install the new equipment, Nordstrom said.Both Nokia and Ericsson are working to make it easier for carriers to switch. Nokia has developed what it calls a “thin layer” of its 4G technology to connect to a new 5G system, allowing a carrier to avoid a wholesale swap of another supplier’s equipment. Ericsson also has a solution to allow a carrier to swap out only a portion of existing infrastructure, and says it can make some areas work side-by-side with Ericsson’s 5G gear.Nokia and Ericsson can agree on one thing: Claims of Huawei’s technological superiority are overblown. They note that they’re involved in the latest networks in the U.S., where carriers are rolling out 5G faster than the Europeans.“We compete quite favorably with Huawei,” Suri said, “with or without the current security concerns.”(Updates to add Nokia and Ericsson production estimate in sixth-last paragraph. An earlier version of the story corrected the ninth paragraph to reflect that Telstra Corp. is an Australian company.)\--With assistance from Caroline Hyde, Kati Pohjanpalo and Angelina Rascouet.To contact the authors of this story: Stefan Nicola in Berlin at email@example.comNiclas Rolander in Stockholm at firstname.lastname@example.orgTo contact the editor responsible for this story: Rebecca Penty at email@example.com, David RocksFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
As electric planes take center stage, Siemens agreed to sell its eAircraft business to GE's jet engine rival Rolls Royce.
(Bloomberg) -- Siemens AG said it will cut 2,700 jobs at its power and gas division, part of a sweeping overhaul announced last month to spin off the embattled business.The reductions, representing about 4% of the unit’s workforce, will take place over several years, mainly at engineering, procurement and construction projects, as well as power transmission products, Siemens said Tuesday. About 1,400 of the lost positions will be in Germany. The decision comes on top of 10,000 job cuts at other businesses announced in May.“The planned measures will help us create more opportunity for growth and the security that comes from being a competitive player in the energy market,” Lisa Davis, head of Gas and Power, said in a statement.Back in May, investors cheered Siemens’ plans to carve out the sprawling power assets, representing the deepest cut to the core of the manufacturing conglomerate that has shed and built up several major assets over the decades. Once spun off, the gas turbine business will include Siemens’ 59% stake in its wind power company Siemens Gamesa Renewable Energy. A share sale is planned by September next year.The division, making large gas turbines and other oilfield equipment, already announced 6,000 job cuts in 2017 as renewable energy disrupts the sector. Siemens Chief Executive Officer Joe Kaeser doesn’t expect the global gas turbine market to recover in the medium-term. Changes in demand have reduced sales of turbines to about 110 a year, compared with global manufacturing capacity of 400.The decision to reduce jobs “lacked imagination,” the IG Metall union said in a statement, calling for investments in qualification of employees.Siemens rose 2.3% to 105.80 at the close of trading, after an intraday high of 106.14 euros. The stock has gained 8.7% this year.(Updates with union comment in 6th paragraph.)To contact the reporter on this story: Oliver Sachgau in Munich at firstname.lastname@example.orgTo contact the editors responsible for this story: Anthony Palazzo at email@example.com, Elisabeth BehrmannFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Siemens plans to cut 2,700 jobs at its gas and power company, in addition to 10,400 it is already shedding in its core units, the German engineering firm said on Tuesday. Siemens said last month it was spinning off its gas and power business, which has acted as a drag on the firm's performance as the rise of renewable power hits demand for gas turbines. The cuts will primarily affect the projects and power transmission businesses as well as support functions.
Much of the recent negative information on GE seems to have come from GE’s biggest competitor. That raises a new risk for GE investors: The echo chamber.
International energy companies are descending on Iraq for a bid on the country’s $40 billion infrastructure overhaul imitative
NEW YORK/BAGHDAD/WASHINGTON (Reuters) - General Electric Co potentially stands to win a large share of multibillion-dollar contracts to rebuild Iraq's electricity system, reflecting a change in how Iraq intends to award the work after the United States lobbied for GE, according to sources familiar with the matter. Iraq signed five-year "roadmap" agreements with GE and Siemens AG last October under which the country plans to spend about $14 billion on new plants, repairs, power lines and, eventually, equipment to capture for use natural gas that is now being flared off. In awarding projects to Siemens in April, however, Iraq's prime minister said the German company was well-placed to win the bulk of future deals.
Today we are going to look at Siemens Aktiengesellschaft (FRA:SIE) to see whether it might be an attractive investment...
Fiat Chrysler's abrupt withdrawal of its merger offer for Renault lays bare the limits of the French government's interventionist industrial policy, forever struggling to balance political needs with hard commercial logic. The Italian-U.S. carmaker pointed a finger at the French government after dropping a $35 billion merger offer for Renault , in which the French state holds a 15% stake. While eager to build global industrial champions around French companies, President Emmanuel Macron's government is all too aware of the dangers of ill-matched industrial combinations.
Sweden's Vattenfall may raise its target for installing offshore wind power generation in Europe beyond the 11,000 megawatts (MW) it now plans to have in place by 2025, an executive said. Gunnar Groebler, the Swedish power firm's board member in charge of wind, had announced the 11,000 MW target in January, after installed capacity reached 3,000 MW at the end of 2018.
Sweden's Vattenfall will seek to monitor and possibly widen expansion targets for offshore wind in Europe which is growing amid rising investor interest, said the company's board member in charge of wind, Gunnar Groebler. Groebler had said in January that the company was aiming to arrive at an installed total 11,000 megawatts (MW) of offshore wind by 2025, up from 3,000 MW installed at the end of 2018. "These targets for offshore wind already need constant monitoring and reviewing," Groebler said in an interview with Reuters.
Both companies are, for understandable reasons, being cautious with regard to assumptions over gas turbine demand. But what if they're being too pessimistic?
Egypt is considering selling three recently built power plants to private investors, but talks are still at an early stage, Electricity Minister Mohamed Shaker said on Tuesday. The plants, billed at the time as the world's biggest, were built by Siemens AG in a 6 billion euro ($6.7 billion) deal signed in 2015. Egyptian President Abdel Fattah al-Sisi inaugurated them in July.
Finland's Olkiluoto 3 nuclear reactor has begun work to repair a previously reported problem that causes vibrations in its cooling unit, and which must be fixed before regulators sign off on its safety, operator TVO said on Thursday. Start-up of the reactor, Finland's first new nuclear plant in some 40 years, is a decade behind schedule amid repeated setbacks in its construction. In March, the reactor received an operating permit from the Finnish government, the first one issued in 40 years, but it still requires a final nod from regulators before fuel is loaded and production can start in 2020.
Joe Kaeser has been the CEO of Siemens Aktiengesellschaft (FRA:SIE) since 2013. This report will, first, examine the...
Moody's Investors Service ("Moody's") has today affirmed Siemens Aktiengesellschaft's ("Siemens") A1/P-1 long term and short term issuer ratings and it's (P)A1 senior unsecured medium term notes program rating. Concurrently, Moody's has affirmed Siemens' Prime-1 (P-1) commercial paper rating.