Business & Finance
Business and Finance
Business and Finance
Wed, August 11, 2010
Tue, August 10, 2010 General Electric, Honeywell International, Siemens AG, United Technologies and Scripps Networks Interactive
CHICAGO--([ BUSINESS WIRE ])--Zacks.com Analyst Blog features: General Electric (NYSE: GE), Honeywell International Inc. (NYSE: HON), Siemens AG (NYSE: SI), United Technologies Corp. (NYSE: UTX ) and Scripps Networks Interactive Inc. ([ SNI ]).
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Here are highlights from Mondaya™s Analyst Blog:
GE in Utility Privatization Project
GE Intelligent Platforms, a part of General Electric (NYSE: GE), will be working on the Alaska Utility Privatization Project being developed by Doyon Utilities LLC. The project will use GEa™s Proficy Process Systems, providing productive and flexible power generation solution.
Doyon has received this utility privatization contract for the United States Army Forts Wainwright, Richardson and Greely in Fairbanks, Anchorage and Delta Junction, Alaska. The period of contract is 50 years, during which Doyon will have ownership of the electric, natural gas, steam and potable water distribution systems, as well as the wastewater collection system. Doyon will be responsible for the operation and maintenance of these systems and aims to improve the quality and efficiency of the systems over time.
General Electrica™s Proficy Systems provides a solution to Doyona™s goal of providing a quick upgrade to the existing aging infrastructure at a low implementation cost. The Proficy Process Systems and Proficy Historians, together with GEa™s Proficy Troubleshooter software, provide an accurate and stable control of optimized boiler. These systems also regulate power generation and provide scope for future expansion.With the help of these systems, Doyon will be able to calculate the use of electricity, water, wastewater and steam, which will help it to derive further benefits through conservation.
Proficy is a product of the companya™s $4 billion annual revenue generating software and solutions services businesses, engaged in providing productivity improving solution to customers. Headquartered in Charlottesville, VA., GE Intelligent Platforms is a global provider of software, hardware, services, and has expertise in automation and embedded computing.
General Electric has one of the best infrastructure franchises worldwide with solid organic growth rates, exposure to favorable secular trends and a large installed base supporting a growing annuity-like service business. Infrastructure businesses of the company are helping to build energy, health, transportation and technology infrastructure of the new century. These businesses provide products and services that facilitate the developing regions to participate in the global economy, while also assisting developed regions to upgrade with cleaner, more efficient and better infrastructure technologies.
However, the companya™s global expansion is subject to economic and political risks pertaining to various operating geographies.
Operating in more than 100 countries globally and employing about 300,000 people worldwide, General Electric Co. is a diversified infrastructure, finance and media company.Within the energy sector, the company aims to develop and install technology for the efficient use of natural resources. The major competitors of General Electric are Honeywell International Inc. (NYSE: HON), Siemens AG (NYSE: SI) and United Technologies Corp. (NYSE: UTX ).
We currently maintain our Neutral rating on General Electric, with a Zacks #3 Rank over the next one-to-three months.
Scripps Network Beats
Scripps Networks Interactive Inc. ([ SNI ]) today reported strong second quarter 2010 financial results. Quarterly GAAP net income was $106.2 million or 63 cents per share compared to a net income of $79.5 million or 48 cents per share in the prior-year quarter. However, excluding one-time special items, Scripps Networksa™ second quarter 2010 EPS was 59 cents, above the Zacks Consensus Estimate of 58 cents.
Quarterly consolidated revenue of $516 million was an improvement of 31.9% year-over-year and also better than the Zacks Consensus Estimate of $507 million. Interestingly, even excluding the contribution from newly acquired Travel Channel, organic revenue increased 16% year over year.
The strong performance were mainly attributable to double-digit growth in advertising and affiliate-fee revenue at the companya™s flagship Lifestyle Media business and higher total segment profit.
Quarterly operating income was $193.6 million, up 32% year-over-year. In the reported quarter, total segment profit (excluding special items) was $227.9 million, up a whopping 37.2% year over year.
During the first half of 2010, Scripps Networks generated $217.3 million of cash from operations compared to $245.4 million in the prior-year period. Free cash flow (cash flow from operations less capital expenditures) in the same period was $183.4 million compared to $205 million in the year-ago period.
At the end of the second quarter 2010, Scripps Networks had $331 million of cash and cash equivalents and $884.32 million of debt outstanding on its balance sheet compared to $254.4 million of cash and cash equivalents and $884.2 million of outstanding debt at the end of fiscal 2009. At the end of the second quarter 2010, debt-to-capitalization ratio was 0.35 compared to 0.37 at the end of fiscal 2009.
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