GE cuts $56 million contract with Norfolk Engineering

General Electric (NYSE: GE) has terminated a $56 million contract with Norfolk Integrated Engineering (ASX: NFK), according to a Norfolk press release (link opens a PDF) issued today.

The deal was first penned in August 2012, when the two companies agreed to collaborate on a new radio-based railroad signalling system for Fortescue Metal Group‘s (ASX: FMG) track duplication project in Western Australia.

While a surprise, the termination falls under GE’s contract rights to bow out “for convenience.” Norfolk and GE will continue to work together to hand over the project, and are currently in negotiations to determine Norfolk’s compensation for works completed.

According to the press release, the results “could have a material negative impact” for the year to 31 March 2013. As of today, Norfolk expects a $20 million to $30 million EBIT reported guidance loss for FY 2013 with continuing operations pulling in just over $20 million. The company does not expect the termination to affect its FY 2014 guidance.

Need some steadier income sources? The Australian Financial Review says “good quality Australian shares that have a long history of paying dividends are a real alternative to a term deposit.” Get “3 Stocks for the Great Dividend Boom” in our special FREE report. Click here now to find out the names, stock symbols, and full research for our three favourite income ideas, all completely free!

More reading

The Motley Fool’s purpose is to help the world invest, better.  Click here now  for your free subscription to Take Stock, The Motley Fool’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead.  This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.  Motley Fool contributor Justin Loiseau has no position in any stocks mentioned in this article. You can follow him on Twitter  @TMFJLo .

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…


The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!