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General Electric is a conglomerate of companies that are affected differently by the downturn in the economy. Some analysts believe the company's stock price is undervalued, and that purchasing stock will prove to be a wise investment over time for investors. An in-depth company analysis provides support for the conclusion.

Businesses can save on costs during times of financial crisis by conducting reviews of its internal and external organization such as banking relationships. The Cookson Group, which has about $3 billion in international sales, is a case in point. Review of its US operations resulted in the streamlining of its banks to two, Fleet Bank and Mellon Bank. The action was estimated to have saved $2 million dollar in banking costs.

Hewlett-Packard reported orders sharply down for the third fiscal quarter of 1996, which ended Jul 31. Divestiture of its disk-drive arm caused HP to take a large charge. The company's various businesses and financial forecasts are discussed.

More large, diversified organizations are establishing in-house banking systems, which are internal treasury systems that centrally manage liquidity and risk. In-house banks can optimize investment returns while minimizing borrowing from outside sources. Organizations establishing in-house banks should consider several factors, including the structure of the organization, the organization's money management policies, and the expertise of corporate treasurers., High-torque treasury: in-house bank drives powerful money machine Managers of complex corporations are recognizing that centralized management of liquidity and risk are as important and potentially profitable to an enterprise [...]

Chile's Quinenco hopes to belie the notion that investors are better off investing in its best performing underlying assets than in the conglomerate itself. Skeptics claim that investing in a conglomerate is like investing in a holding company which decides where to infuse the capital among its strong and weak performing properties. Chmn Guillermo Luksic urges investors to focus on the corporation's capacity to develop new ventures and create value for shareholders, rather than the decline in share price since Jun 1998., If investors had put their money into Quinenco's best performing assets, rather than the conglomerate itself, they would have outperformed the Chilean bolsa. So why invest in Quinenco? Latin American [...]

Westinghouse Electric Co may be nearing the bottom of its financial decline. Although the company announced a loss of $326 million on revenues of $8.9 million for 1993, other factors indicate that Westinghouse is likely to cut costs and sell assets, such as its broadcast companies.

STICK TO YOUR KNITTING, OR EXPAND YOUR CORE COMPETENCIES? IN A CORPORATE LANDSCAPE littered with failed mergers and acquisitions, it's getting hard to argue the advantages of operating in diverse [...]

The continuing reverberations from Daewoo's near-collapse are hitting South Korea's economy hard. Catherine Lee reports from Seoul on the government's attempts to steady the boat It is fascinating to see [...]

Three companies are shaking up their 401(k) plans, affecting about $3.5 billion in assets. Among the changes: * PG&E Corp., San Francisco, is consolidating the 401(k) plans of its five [...]

Industrial conglomerate Tyco, beset by accounting irregularities and management snafus, has suffered a 63% share-price decline since first-quarter 2001, from 63 to 22. CEO Dennis Kozlowski has been the object of much criticism. Value analysts assert Tyco is primed for recovery, with its troubles already accounted for in its share price, while competitors are overvalued.

First-quarter 2002 GDP growth of nearly 6% has excited some, but malingering profit, employment and capital spending numbers are a trap waiting to spring. Perennially offensive Tyco International incited stock-price attrition with announcement of first-quarter losses. Stock forecaster Archie MacAllaster discusses the prescience supporting his numerous successful picks.

The relationship between corporate financial performance and diversification is analyzed by examining a large sampling of corporations with a stock market-based measure of diversification. Use of a large database and control for corporate size reveals no significant statistical connection between financial performance and diversification.

The effect of mergers on the alphas and betas of actual merged companies are compared to those of homemade mergers available to the investor who could buy proportional shares of the two firms. Some merger synergy is evident. The evidence did not support current theory that either the target firms' relative size or concurrent capital structure changes were related to these observed alpha and beta shifts. Weak evidence indicates more frequent synergy associated with non-conglomerate mergers. Mergers are not predominantly synergistic, and do not guarantee operating efficiency.

Asea Brown Boveri share prices have recovered from lows caused by a slowdown in the company's traditional businesses. ABB's new focus on high-technology business is leading a recovery.

Fortune Brands Inc.'s share price has not performed well despite very solid fundamentals. Full-year operating income per share is expected to grow 20% in 1999, and are projected to grow another 20% in 2000. Perhaps there is little interest in the company because it is diversified into different businesses, bucking the trend towards consolidation.

Thailand's economic crisis has dealt a major blow to the country's pre-eminent industrial group, Siam Cement Group. In 1997, the once prestigious conglomerate reported its first annual loss, the largest ever by a Thai company, which amounted to around $1.5 billion net. Siam Cement's financial troubles can be attributed to its enormous unhedged foreign debt, which was approximately $4.3 billion at the end of 1997. When the baht was devalued, the company found itself facing escalating interest repayments to foreign lenders. CEO Chumpol Nalamlieng contends that his company did not see the need to hedge because it was assured by the government, bankers and economists of the stability of the currency. Although Siam Cement has promised to maintain its debt repayment schedule, analysts say that this may be very difficult given the decline in domestic demand and export prices.

The diversified leisure group Amalgamated Holdings Limited has improved its financial status due to management strategies introduced by director of finance Chris Gotham. Gotham introduced treasury operation disciplines, new strategic planning systems and developed a group finance manual. He is currently investigating international joint venture opportunities.

International conglomerate Hanson is generally regarded very favourably by financial analysts at present, although its shares have fallen below the average of the FT-SE All-Share Index over 1994. Most brokers are purchasing Hanson shares, expecting it to benefit in 1995 from its purchase of Quantum Chemicals. They are also attracted by the fact that volume and prices are starting to rise in the chemicals, aggregates and bricks sectors.

Buyouts continue to generate record demand for syndicated bank loans, with Chemical Banking Corp. leading the financing for major deals just disclosed by ITT Corp. and the buyout firm Clayton, [...]

ITT Corp Treasurer Ann Reese has been instrumental in procuring her company's first syndicated credit line. The line is worth $7 billion and is led by Chemical Bank. ITT decided to consolidate its bilateral credit lines with a syndicated line in an effort to pull all of its international bank relations together. Foreign exchange, interest rate management and cash management are some of the other services that ITT looks for in a commercial bank., As treasurer of lTT Corp., a big part of Ann Reese's job is managing the New York conglomerate| banking relationships. And as a former banker herself. Ms. Reese appreciates that [...]

Two million cumulative convertible redeemable preference shares (CCRPS) were underwritten by Montagu Private Equity in mini-conglomerate Mosaic Investments as development capital investment. Mosaic had acquired 15 firms in a wide range of industries by January 1991 but had to suspend share trading due to financial problems. The 2 million pounds capital allowed the firm to be listed again in May 1993, with Mosaic announcing profit of 415,000 pounds sterling in the half year to October 1993. Mosaic now focuses on three core businesses, including character lisensing via Copyright Promotions Group.

General Host has improved analysts' estimates of earnings per share to a range of 40 to 50 cents with its 49.5% interest in Sunbelt Nursery Group in Mar 1993. Expansion plans, store remodeling and good weather are also cited as reasons for an increase in earnings.

The rules restricting tax relief on debt in the UK to the level of external debt for the worldwide group have also been applied to UK-UK funding to ensure that it is compliant with EU law. The rules were expected to impose significant compliance burden on certain businesses. Details of the rules are discussed.

FMC Corp is expected to be in good financial health despite the recession because it is reducing its debt and its performance chemicals divisions have performed well. Export trade is expected to improve.

National Service Industries owns 15 companies that are self-managed and profitable. The recession affected the performances of each subsidiaries and National's profit. The company restructured and is more efficient.

The success of the Weir Group (UK) is expected to continue, despite forecasts of a recession. The organization is involved in many industries, including petroleum, power generation, and marine construction, and this diversity has contributed to its success. The Weir Group experienced a 35% increase in turnover and a 15% increase in pre-tax profits in 1989, and has no net debt and a cash reserve of more than 20 million pounds in 1990. A report by County NatWest WoodMac has indicated that the Weir Group should be able to finance strong organic growth through acquisitions.

Asian industrial conglomerate Hutchison announcement of first-half earnings in August, 2002 will generate much attention from market analysts. The company's efforts to secure a dominant position in the worldwide roll-out of third-generation wireless phones and services are discussed.

W. James McNerney, 3M Chairman, has kept his company ahead of a difficult market with cost-cutting measures. First-quarter earnings of $487 million, up 6%, countered a drop in sales of 7%, to $3.9 million. Some analysts fear that 3M's share price of 126, up almost 50% following September 11th, leaves nowhere to go but down.

ABB, an engineering conglomerate headquartered in Switzerland, now confronts asbestos litigation, with potential liabilities of more than one billion. Its failure to integrate new markets and applications also contribute to two-thirds reduction in share value.

Allegations that stockholders' funds were misused at Tomkins have led to questions about corporate governance.

Nabisco has had its Baa2 senior unsecured debt ratings placed on review for possible upgrade by [...]