American companies are paying the price for Trump's Iran policy

[kudzu]

American companies are paying the price for Trump's Iran ...

newsworld.co › Economics

American companies are paying the price for Trump's Iran policy CNNMoneyBelgium's KBC to limit Iran transactions after US sanctions move ReutersWith nuclear deal under threat, Iran shows off centrifuges Washington PostDefend the deal: on Iran nuclear deal The HinduFull coverage



Major American businesses are preparing a retreat from Iran before President Trump's crushing sanctions take effect.
Trump's decision last month to exit the Iran nuclear deal -- and re-impose tough penalties on the nation's oil industry -- means US companies will draw the ire of Washington if they don't wind down their operations there.

The Obama administration's historic nuclear agreement with Iran in 2016 paved the way for General Electric (GE), Honeywell, Dover (DOV) and other companies to sell tens of millions of dollars' worth of equipment to Iran's aging energy industry. Under the terms of that deal, US companies were granted licenses to do business with Iran through foreign subsidiaries.

GE, for instance, reported nearly $25 million of revenue from Iran since 2016 between the parent company and its Baker Hughes (BHGE) division. That includes lucrative contracts to sell machinery and parts to Iran's gas plants and oil refineries.

But those transactions won't be possible beyond November 4, when the federal government expects to have re-imposed all nuclear-related sanctions on Iran.

Last month, the US Treasury Department instructed people engaged in previously allowed Iranian business dealings to "take the steps necessary to wind down" those activities "to avoid exposure to sanctions or an enforcement action under US law."

Related: Europe asks US to spare its companies from Iran sanctions

A person familiar with the matter told CNNMoney that GE plans to wind down its business in Iran by November 4. GE recently shut its very small Tehran office, in which the company had two or three people, the person said.

"We are adapting our activities in Iran as necessary to conform with the recent changes in US law," GE said in a statement.

GE has exposure to Iran on two different levels. First, there's GE Power, the struggling maker of parts for power plants. And then there's Baker Hughes, the oil services giant that GE merged its oil and gas business with last year.

GE recently reported in an SEC filing that its oil and gas businesses received a purchase order for valves and parts for industrial machinery and equipment used in gas facilities in Iran. The business led to $6.7 million in revenue being reported in the first quarter.

GE also landed another 10 orders in the first quarter for spare parts to support Iran's gas facilities.

Additionally, GE Power agreed to sell protection relays to an oil refinery in Iran as well as compressor and other parts to a petrochemical company there.

"GE's activities in Iran to date have been limited and in compliance" with federal rules, the company said.

Related: New Iran sanctions will kill billions in jet sales. Boeing is ready

Honeywell (HON), the maker of home thermostats, jet engines and dozens of other products, also signaled it will soon exit Iran.

continued

http://money.cnn.com/2018/06/07/news...ump/index.html

[kudzu]

In a statement, Honeywell said it will "continue" to "operate within the parameters of all applicable US and international regulations."

Honeywell generated about $58 million of revenue last year on sales of services and products that went to Iran's oil, gas and petrochemical industry, according to SEC filings.

Boeing (BA) has also been caught in the middle of the Iran sanctions. The aerospace giant is poised to lose out on billions of dollars in sales from deals to sell 110 jets to Iran Air and Iran Aseman Airlines.

Boeing did not respond to a request for comment.

Dover, which makes pumps, compressors and other systems, said in a recent filing that it expected to generate about $14 million by selling parts to Iran's oil, gas and petrochemical sector.

In a statement, Dover said its foreign subsidiaries currently sell products in Iran through waivers that the Trump administration has announced plans to revoke.

"Upon such revocation," Dover said, "those subsidiaries will cease making sales or providing services into Iran to fully comply with the US sanctions program."

At least one major insurance company is being forced to adapt to the looming penalties on Iran.

Chubb (CB), the world's largest publicly traded property and casualty insurer, does not have a physical presence in Iran. However, Chubb has been providing insurance to several marine cargo clients who were transporting oil and other products to and from Iran, according to SEC filings.

Chubb said in a statement that it will ensure "full compliance" with the Treasury Department's Iran sanctions.

CNNMoney (New York)
First published June 7, 2018: 1:04 PM ET

[kudzu]

In a statement, Honeywell said it will "continue" to "operate within the parameters of all applicable US and international regulations."

Honeywell generated about $58 million of revenue last year on sales of services and products that went to Iran's oil, gas and petrochemical industry, according to SEC filings.

Boeing (BA) has also been caught in the middle of the Iran sanctions. The aerospace giant is poised to lose out on billions of dollars in sales from deals to sell 110 jets to Iran Air and Iran Aseman Airlines.

Boeing did not respond to a request for comment.

Dover, which makes pumps, compressors and other systems, said in a recent filing that it expected to generate about $14 million by selling parts to Iran's oil, gas and petrochemical sector.

In a statement, Dover said its foreign subsidiaries currently sell products in Iran through waivers that the Trump administration has announced plans to revoke.

"Upon such revocation," Dover said, "those subsidiaries will cease making sales or providing services into Iran to fully comply with the US sanctions program."

At least one major insurance company is being forced to adapt to the looming penalties on Iran.

Chubb (CB), the world's largest publicly traded property and casualty insurer, does not have a physical presence in Iran. However, Chubb has been providing insurance to several marine cargo clients who were transporting oil and other products to and from Iran, according to SEC filings.

Chubb said in a statement that it will ensure "full compliance" with the Treasury Department's Iran sanctions.

CNNMoney (New York)
First published June 7, 2018: 1:04 PM ET

Aren't we proud of Trump now?

[Legion]

I guess things change, and any company's management that doesn't know that when they take business risks is pretty clueless.

[kudzu]

I guess things change, and any company's management that doesn't know that when they take business risks is pretty clueless.

They take risks based on AGREEMENTS...

[katzgar]

I guess things change, and any company's management that doesn't know that when they take business risks is pretty clueless.

this is one of the stupidest comments ever on these forums.

[countryboy]

American companies are paying the price for Trump's Iran ...

newsworld.co › Economics

American companies are paying the price for Trump's Iran policy CNNMoneyBelgium's KBC to limit Iran transactions after US sanctions move ReutersWith nuclear deal under threat, Iran shows off centrifuges Washington PostDefend the deal: on Iran nuclear deal The HinduFull coverage



Major American businesses are preparing a retreat from Iran before President Trump's crushing sanctions take effect.
Trump's decision last month to exit the Iran nuclear deal -- and re-impose tough penalties on the nation's oil industry -- means US companies will draw the ire of Washington if they don't wind down their operations there.

The Obama administration's historic nuclear agreement with Iran in 2016 paved the way for General Electric (GE), Honeywell, Dover (DOV) and other companies to sell tens of millions of dollars' worth of equipment to Iran's aging energy industry. Under the terms of that deal, US companies were granted licenses to do business with Iran through foreign subsidiaries.

GE, for instance, reported nearly $25 million of revenue from Iran since 2016 between the parent company and its Baker Hughes (BHGE) division. That includes lucrative contracts to sell machinery and parts to Iran's gas plants and oil refineries.

But those transactions won't be possible beyond November 4, when the federal government expects to have re-imposed all nuclear-related sanctions on Iran.

Last month, the US Treasury Department instructed people engaged in previously allowed Iranian business dealings to "take the steps necessary to wind down" those activities "to avoid exposure to sanctions or an enforcement action under US law."

Related: Europe asks US to spare its companies from Iran sanctions

A person familiar with the matter told CNNMoney that GE plans to wind down its business in Iran by November 4. GE recently shut its very small Tehran office, in which the company had two or three people, the person said.

"We are adapting our activities in Iran as necessary to conform with the recent changes in US law," GE said in a statement.

GE has exposure to Iran on two different levels. First, there's GE Power, the struggling maker of parts for power plants. And then there's Baker Hughes, the oil services giant that GE merged its oil and gas business with last year.

GE recently reported in an SEC filing that its oil and gas businesses received a purchase order for valves and parts for industrial machinery and equipment used in gas facilities in Iran. The business led to $6.7 million in revenue being reported in the first quarter.

GE also landed another 10 orders in the first quarter for spare parts to support Iran's gas facilities.

Additionally, GE Power agreed to sell protection relays to an oil refinery in Iran as well as compressor and other parts to a petrochemical company there.

"GE's activities in Iran to date have been limited and in compliance" with federal rules, the company said.

Related: New Iran sanctions will kill billions in jet sales. Boeing is ready

Honeywell (HON), the maker of home thermostats, jet engines and dozens of other products, also signaled it will soon exit Iran.

continued

http://money.cnn.com/2018/06/07/news...ump/index.html

Wait, libs are suddenly concerned about Big Oil and other mega-corporations? Lol!

[kudzu]

this is one of the stupidest comments ever on these forums.

Trump doesn't seem to have much regard for successful US companies.......

[Legion]

this is one of the stupidest comments ever on these forums.

I'd be worried if you thought it wasn't, Andrew.

[kudzu]

Wait, libs are suddenly concerned about Big Oil and other mega-corporations? Lol!

Who do you think owns big oil?

[kudzu]

Do you think a handful of major corporations' temporary ability to do business in Iran should override national security concerns?

Hahaha.. Iran has announced that they are going to develop nuclear weapons since Trump reneged on the deal.

[Legion]

Hahaha.. Iran has announced that they are going to develop nuclear weapons since Trump reneged on the deal.

That's no surprise. I suspected they were doing so all along, or planned to.

Now at least they'll be sanctioned. No more secret pallets of cash from the USA, I guess.

[kudzu]

That's no surprise. I suspected they were doing so all along, or planned to.

Now at least they'll be sanctioned. No more secret pallets of cash from the USA, I guess.

No.. ALL intelligence indicates they were in compliance... Secret? LOLOL.. That was Iranian money frozen since 1979. Didn't you know that?

[Legion]

Who do you think owns big oil?

According to http://www.whoownsbigoil.com, investors/shareholders own "big oil" - many of them individual investors, some institutional, some organizational.

Who do you suppose many liberals think owns "big oil"?

[ThatOwlWoman]

All I can say about this is that Mr. Owl aka Mr. Capitalist, who has managed to amass $2M+ in retirement funds, has done some shifting and allocation because he closely watches America politics and geopolitics, and is fairly cognizant of which way the winds of fortune are headed. Hopefully I won't be violating SEC rules by saying here that he moves our funds around opposite of what Trump is bloviating about.