Showing posts with label about. Show all posts
Showing posts with label about. Show all posts

2011/10/14

Investors to manufacturers: what about next year? (Reuters)

BOSTON (Reuters) – "Forget about where you've been. Tell us where you're going."

That's the message from investors to big U.S. manufacturers ahead of a wave of earnings reports over the next few weeks. They will be far less interested in hearing how the third quarter went than what companies expect next year to be like and how they are preparing for it.

While early earnings reports from big companies including Alcoa Inc and JPMorgan Chase & Co disappointed investors, analysts are still expecting the industrial sector to chalk up solid third-quarter profit growth of 15.2 percent across the sector, above the 12.5 percent forecast for the full Standard & Poor's 500 index.

Chief executives are likely to push back on questions about their 2012 outlooks -- big companies including General Electric Co, United Technologies Corp and Honeywell International Inc typically wait until December to discuss their forecast for the next year. But some investors say the European debt crisis and signs of slowing demand will make them eager for an earlier update.

The memory of the sharp downturn following the late 2008 credit crunch is still fresh in their minds.

"Are managements going to retrench as quickly and as deeply in the event of a credit moment in Europe or China as they did last time around?" said Peter Klein, senior portfolio manager at Fifth Third Asset Management in Cleveland, Ohio. "What we want to hear is a dose of reality. What are you planning, what's your contingency, what are you actually seeing?"

This comes as CEOs of many big U.S. companies say orders are holding up, and one of the main risks they see is that customers will start holding off on orders out of fear that something might happen to hurt the economy.

"There is just not enough certainty and in some ways the most important thing we can do right now is social and it has to do with rebuilding confidence," GE CEO Jeff Immelt told a group of executives from mid-sized U.S. companies in Columbus, Ohio last week.

Immelt is due to speak at a Thomson Reuters Newsmaker event in New York on Monday.

GOOD NEWS, BAD NEWS

Heading into the reporting season, not every company has offered a positive view of how the third quarter went.

Ingersoll Rand Plc fired a warning shot, saying that profit could be down for the quarter, as demand for heating and cooling equipment that it had earlier expected in North America failed to materialize.

But Honeywell confirmed its outlook, saying it expected to come in at the high end of its forecast on strong demand for turbochargers and automation and control equipment.

Several factors are working in big manufacturers' favor: One is that the price of a wide range of metals have fallen, easing pressure on profit margins. The price of copper, particularly important as it used for all sorts of wiring, fell by 25 percent in the third quarter.

Another is that many big industrials, including GE, United Technologies and ITT Corp now generate a significant portion of their revenue from maintenance of the products they sell, and that business tends to hold up even when new-equipment sales fall.

But the risks are also clear. With growth at home sagging, U.S. multinationals have been counting on foreign demand to drive results. Europe's economies are being rocked by a sovereign-debt crisis and China is showing signs of slowing.

Analysts, on average, have forecast slower growth for big manufacturers in the third quarter versus the first half of the year, according to Thomson Reuters I/B/E/S.

Among blue-chip names, for GE, they look for earnings to rise 10.7 percent; for United Technologies they see 11.5 percent; for Caterpillar Inc 27 percent, and for 3M Co 5 percent.

In addition, some investors say Wall Street's worries may have gotten ahead of reality. The S&P capital goods index has fallen some 14 percent over the past six months, a steeper slide than the 8 percent decline of the broad S&P 500.

"We don't believe there's going to be a double dip. We do believe we're in a slow recovery, but this market is behaving like it's got bipolar disorder," said Scott Schermerhorn, portfolio manager with Granite Investment Advisors Inc in Concord, New Hampshire, which manages about $500 million in investments and is currently underweight in the industrial sector.

"The reason we scaled back on industrials was they were ahead of themselves," Schermerhorn said. "Now we view industrials as attractive again and we're actively looking in that space."

(Additional reporting by Nick Zieminski in New York; Editing by Steve Orlofsky)


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2011/09/18

Reno crash raises questions about the future of air races (The Christian Science Monitor)

[UPDATE: The number of people killed in the Reno Air Races crash Friday has risen to nine, according to the Reno police. Also, a T-28 aircraft crashed on the runway during a six-aircraft routine Saturday at an airshow in Martinsburg, West Virginia, killing the pilot. There were no other casualties, according to initial reports.]

The crash at the Reno Air Races in Nevada Friday afternoon – the worst accident in the history of the event – raises questions about the future of what’s billed as “the world’s fastest motorsport.”

Have the capabilities of the high-speed aircraft flown at very low level exceeded the abilities of even the best pilots? Should age be a consideration in allowing pilots to compete? Should the race course be moved farther away from the tens of thousands of spectators who gather there each September.

Sometimes likened to the top race cars as “Formula One with wings,” racing aircraft fly at up to 500 miles an hour and less than 100 feet above the ground. The fastest categories fly an 8-mile oval course around pylons.

The Monitor's weekly news quiz for Sept. 11-16, 2011

Many of the competing aircraft started out as vintage World War II fighters, such as the P-51 Mustang and the F8F Bearcat. But they are highly modified, with larger engines and aerodynamic characteristics that have been altered to increase performance during high-G turns that can stress airframes.

Jimmy Leeward, the pilot in the crash, was flying a P-51 named the "Galloping Ghost."

Mr. Leeward, a real estate developer and owner of the Leeward Air Ranch Racing Team in Ocala, Fla., was a veteran pilot who’d flown 250 types of aircraft. He was a long-time racer who’d flown at Reno since 1975, and he’d flown as a stunt pilot in such films as "Amelia," Cloud Dancer," and "The Tuskegee Airmen."

In an interview with the Ocala Star-Banner last year, Leeward talked about the P-51 – the aircraft flown in combat in World War II by famed pilot Chuck Yeager, who once shot down five enemy aircraft on a single mission.

"They're more fun. More speed, more challenge,” Leeward said of the P-51. “Speed, speed and more speed.”

Initial reports indicated that the pilot had pulled up and called a€?maydaya€

At this writing, three people (including the pilot) have died as a result of the crash and 56 were taken to local hospitals, many of them critically injured.

But given the total destruction of the aircraft, former NTSB investigator Greg Feith told MSNBC, the exact cause of the accident – perhaps a mechanical failure or a medical situation experienced by the pilot – may never be known.

Some have raised questions about Leeward’s age, initially reported as 80 but then corrected to 74. Those who knew him well reject the suggestion that he was too old to participate in such a stressful and potentially dangerous sport requiring physical strength, extraordinary reflexes, and the ability to react instantly to emergency situations including engine failure at low level.

Leeward's aviation medical records were up-to-date, and he was "a very qualified, very experienced pilot," said Reno Air Races President and CEO Mike Houghton.

Some witnesses to the crash suggested that Leeward may have maneuvered his aircraft away from the grandstands where the casualties could have been higher.

Four pilots have been killed in recent years. Over the years, there have been 19 deaths due to crashes and collisions at Reno, but none until this week had involved spectators.

Two pilots died at the event in 1994, and organizers softened two of the curves pilots negotiate after two more pilots crashed into nearby neighborhoods in 1998 and 1999, according to an Associated Press report. In 2007 and 2008, four pilots were killed at the races, prompting local school officials to consider barring student field trips to the event.

Air shows not involving races also have a long record of accidents involving pilots and spectators. There have been eight so far this year, five involving fatalities. The worst was in 2002 when a Ukrainian Air Force fighter crashed during an air show near Lviv, Ukraine, killing 77 people and injuring 543.

National Transportation Safety Board (NTSB) officials have taken over the investigation in Reno. The Federal Aviation Administration (FAA) is involved as well.

The Monitor's weekly news quiz for Sept. 11-16, 2011


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2011/07/02

More questions raised about Strauss-Kahn accuser (Reuters)

NEW YORK (Reuters) – Scrutiny of the accuser in the sexual assault case against former IMF chief Dominique Strauss-Kahn intensified on Saturday after more revelations about her conduct following the purported May 14 attack.

A judge released Strauss-Kahn from house arrest and lifted strict bail conditions on Friday after prosecutors discovered a pattern of lying in the accuser's background, although serious charges including sexual assault and attempted rape remain in place against the man once seen a top French presidential contender.

A new report says the 32-year-old woman, a hotel maid, spoke of the possibility of financial gain from the incident.

In a phone conversation with her boyfriend, who was held in an Arizona jail on suspicion of possessing 400 pounds (180 kg) of marijuana, she said there was money to be made from Strauss-Kahn, a law-enforcement source familiar with the investigation told Reuters on Saturday.

The call was recorded and the woman told her boyfriend she was fine and not to worry about her, the source said.

The New York Times quoted a well-placed law enforcement official as saying: "She says words to the effect of, 'Don't worry, this guy has a lot of money. I know what I'm doing.'"

On Friday, prosecutors said the accuser lied about being gang-raped in Guinea as part of an application for U.S. asylum and changed details of her story about what she did after the incident in Straus-Kahn's luxury hotel suite.

As the woman's stature falls, that of Strauss-Kahn has rebounded. Some in France are talking about a political comeback, although perhaps not to challenge President Nicolas Sarkozy in 2012.

Strauss-Kahn's whereabouts on Saturday were unknown. He left his Manhattan townhouse and got into a black sedan, followed by a flock of photographers in vehicles and on motorbikes. His car then pulled into a garage with restricted access and he disappeared, thwarting attempts to follow him further.

Revelations about the accuser have left prosecutors struggling to make a case with a central witness whose credibility would be targeted by Strauss-Kahn's defense lawyers.

Investigators once trumpeted the woman as a devout Muslim who immediately reported that Strauss-Kahn, a steward of the world economy from the French elite, sprang naked from the bathroom and forced her to perform oral sex.

Her lawyer, Kenneth Thompson, came to her defense on Friday, portraying her as a frightened, illiterate woman who remained a victim, her body badly bruised in the encounter.

"The victim here may have made some mistakes but that doesn't mean she's not a rape victim," Thompson said.

(Additional reporting by Allison Joyce in New York and Leila Abboud in Paris; Editing by Doina Chiacu and Bill Trott)


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Some worry about nuclear plant evacuation plans (AP)

Retiree Bret Gross of San Clemente loves Southern California weather and the seashore. Yet he's ready for a quick getaway, leaving his car's tank at least half full of gasoline.

Is he worried about earthquakes? Yes. Wildfires? Sure. Floods? Yep.

And then there are those two San Onofre nuclear power reactors five miles down the road. Gross worries that the area cannot be quickly evacuated in a severe nuclear accident.

"Forget the amount of training and plans," he said. "It'll be ugly."

Residents near 12 of 65 U.S. commercial nuclear power sites were interviewed following an Associated Press investigative series that reported population increases of up to 4 1/2 times since 1980 within 10 miles of plant locations.

Those interviewed voiced a mixture of anxiety, confidence and resignation about the safety of reactors. Many doubted they can safely and quickly evacuate in a major accident. Despite the existence of formal evacuation plans, many said they didn't even know where to go. They predicted confusion and panic on crowded roadways.

Some vowed to ignore instructions to take initial shelter at home — a strategy increasingly favored by disaster planners in the face of population expansions. Some residents said they have devised their own emergency plans, intending to ignore official directives.

By law, evacuations must be prepared for areas within about 10 miles of every nuclear plant, but many plans haven't kept up with changing populations, according to the AP investigation.

Also, federal regulators don't set standards for how quickly people must be capable of evacuating. Meanwhile, aging reactors have been operating at higher power, risking larger radioactive releases.

Planning for evacuations falls to local communities and states, all under supervision of the U.S. Nuclear Regulatory Commission and the Federal Emergency Management Agency. Even the best planning, however, is challenged by the extraordinary growth around many plants. Population more than doubled in evacuation zones of a dozen nuclear sites over three decades, according to AP's analysis. The population within 10 miles of San Onofre ballooned by 283 percent to 98,631 since 1980.

Despite population growth, many residents insisted they are relatively comfortable living near nuclear plants. Many work at a plant or live with someone who does.

Yet even some strong nuclear advocates assumed evacuations would bog down.

South of Miami, the population around the Turkey Point plant quadrupled to 155,118 over the past 30 years. Two miles away in Homestead, retired industrial engineer Clara Waterman Powell said nuclear power is "the way of the future." She said she trusts plant workers, yet she can't imagine an orderly evacuation. "If everybody got in the car and started driving, where would we go?" she asked.

In Fort Calhoun, Neb., about five miles from the nuclear plant with the same name, 86-year-old Feris Stevenson said he doesn't worry much about its safety. To him, it's "just another power plant."

Regarding a possible accident, he added, "Why worry about something you can't do anything about?" He thinks it would be hard to evacuate, especially with the Missouri River flooding areas around the plant. "We've got one major road getting out of here," he said, referring to U.S. Highway 75.

Larry Jones and his wife, Jean, have lived in Blair about three miles from the Fort Calhoun plant for 30 years. "It's always in the back of your mind," she said.

The couple said they are unsettled by the memory of hearing long ago that the plant, which opened in 1973, was not designed to last until now. The AP investigation found that federal regulators have been relaxing safety standards to keep aging reactors within the rules and therefore extend their lives.

Serious weaknesses also were found in evacuation plans, including the failure to test different scenarios involving the weather or the time of day. And evacuation zones have remained frozen at 10 miles since they were established in 1978, before the accidents at Three Mile Island, Chernobyl and Fukushima Dai-ichi in Japan.

Some watchdogs say evacuation standards also are kept lax to keep plants running, as nearby populations swell.

At the two-unit Calvert Cliffs site, population within 10 miles has ballooned by 224 percent since 1980, to 48,843.

Darlene Cocco-Adams, an attorney who lives in Lusby, Md., nine miles from the site, predicted havoc in a nuclear emergency. She said there's just one main road leading out of town, and it sometimes backs up "like New York traffic."

"You couldn't get out of here fast enough," she said.

Many residents living near plants said they regularly receive emergency instructions, usually from the plant operator. Some post them on refrigerators or carefully file them. Others simply toss the document, or stuff it into a drawer and forget about it.

"I just throw it away because we're goners anyway" in a severe accident, said Debra Dominski, 52, who has lived in London, Ark., two miles from the twin reactors of Arkansas One in Russellville, for the past 20 years.

Steven Kerekes, a spokesman for the industry's Nuclear Energy Institute, said "evacuations can work well," with traffic rerouted in a single direction during an emergency.

He said a June survey conducted for NEI found that 81 percent of 1,152 adults living within 10 miles of a nuclear facility said they know what to do in an emergency, with 45 percent "very well informed."

Glenn Cannon, director of emergency management for Pennsylvania, said evacuation is possible. "How quick it is depends on the population you're trying to move and what those road resources are," he said. The state is home to nine operating reactors on five sites, including one unit at the Three Mile Island facility, where the nation's worst nuclear accident occurred in 1979.

Gwen Keenan, bureau chief for preparedness at Florida's emergency agency, acknowledged that evacuations could be complicated by people who flee even though they are told to stay put.

"The roads have the capacity. We have the capacity to get out the word," she said of Florida. "I think the biggest wild card is the behavioral aspect: Will people listen?"

The U.S. nuclear industry's most explosive growth has occurred on the Florida's east coast, around the two-reactor Saint Lucie complex near Fort Pierce, where the 10-mile population of 43,332 in 1980 grew 366 percent to 202,010 in 2010.

Retired clock maker Phil Hollis, of Jensen Beach, Fla., lives six miles from St. Lucie and says he feels little worry.

He thinks he received — but didn't read — emergency instructions mailed by the plant operator.

He's uncertain what route to take in an emergency. "I'd just head west" away from the ocean, he guessed.

Many residents were at a loss to explain why they pay so little attention to planning for a nuclear emergency, including some who should perhaps know better.

Barb Tummel, 48, of Monticello, Minn., drives a school bus and lives within two miles of the Monticello plant, where the 10-mile population rose 314 percent to 58,538 over the past three decades.

Her parents both retired from the plant, and she trusts in its safety. As a driver, she said she knows the city plan for evacuating children from schools in a nuclear accident.

But she wasn't sure how she'd handle an accident when school isn't in session. "I think in the calendar they give out every year, I'm sure there's a page on evacuations. I don't necessarily read all those pages."

And she admitted she has no family plan: "I don't. I should, though."

At Crystal River on Florida's west coast, the population has more than doubled since 1980. Nancy Little Lewis, 53, a real estate broker and advocate of nuclear power, has lived 12 miles away for 17 years and believes it is quite safe.

However, she says there should be some standard for how long evacuation can take and can't imagine following official instructions to stay at home in a major nuclear accident. "I wouldn't do that. We're not talking about a hurricane. We're talking about something much worse," she said.

Others asked, what would be the point of a standard for evacuation times?

"It wouldn't work anyway," said Judith Freed, a psychotherapist in Guilford, Vt., who has lived seven miles from the Vermont Yankee plant for 40 years. She said country roads in that area could not handle an evacuation.

Many residents said they had come up with their own evacuation strategies. Lynn Baldwin, 42, of Soddy-Daisy, Tenn., and her husband live within three miles of the two-unit Sequoyah plant.

She said their family plan is based on typical wind patterns. If it's blowing one way, they meet in Dayton; the other way, at her husband's job in town. "He said, `Go this way if it's blowing that way'" she explained, laughing.

___

Donn reported from Boston. Associated Press writers Raquel Maria Dillon in Los Angeles; Matt Sedensky in Miami; Josh Funk in Fort Calhoun, Neb.; Jeannie Nuss in London, Ark.; Amy Forliti in Monticello, Minn.; Bill Kaczor in Tallahassee, Fla.; Eric Tucker in Washington; and Bill Poovey in Soddy-Daisy, Tenn., contributed to this report.

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The AP National Investigative Team can be reached at investigate(at)ap.org


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