MENU

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.

5 ASX Stocks for Building Wealth After 50

I just read that Warren Buffett, the world’s best investor, made over 99% of his massive fortune after his 50th birthday.

It just goes to show you… it’s never too late to start securing your financial future.

And Motley Fool Chief Investment Advisor Scott Phillips just released a brand-new report that reveals five of our favourite ASX stocks for building wealth after 50.

– Each company boasts strong growth prospects over the next 3 to 5 years…

– Most importantly each pays a generous dividend, fully franked.

Simply click here to find out how you can claim your FREE copy of “5 ASX Stocks for Building Wealth After 50.”

See the stocks now