logo
Chinese solar tech poses 'chilling' threat to US electric grid, lawmakers warn

Chinese solar tech poses 'chilling' threat to US electric grid, lawmakers warn

Business Mayor19-05-2025
The reported discovery of 'rogue communication devices' in Chinese-exported solar inverters spurred new scrutiny of Chinese imports and of the security of the domestic electric grid.
In a blue state known for backing solar and other green energy alternatives, a top state Republican warned that 'the time to act is now' to stop incursions by a malign foreign actor.
'The recent discovery of rogue communication devices underscores a chilling reality: our critical infrastructure is vulnerable, and New Jersey's leadership is asleep at the wheel,' said state Sen. Doug Steinhardt, R-Belvidere.
Steinhardt, a former chair of the state GOP, said allowing 'hostile foreign governments' to potentially penetrate U.S. energy networks is a national security writ large.
TRUMP ENERGY CHIEF RECOUNTS EVOLUTION OF US ENVIRONS OVER 56 EARTH DAYS: A HANDILY-ENERGIZED SOCIETY WORKS
In New Jersey's case, three bills – all sponsored by Steinhardt – seek to blunt this new threat, including one banning the state from companies owned by or based out of certain foreign countries.
Another bill in the Garden State would somewhat mirror Florida Gov. Ron DeSantis' policy against Chinese land ownership near protected facilities.
Such policies also grew out of CCP-linked purchases of land in the Sunshine State and across the country, including another controversial 380,000-acre purchase in North Dakota near the Grand Forks Air Force Base.
A Reuters report last week discovered solar power inverters were found to have 'rogue communication devices not listed in product documents' within the modules after being 'stripped-down' by technologists.
Inverters, of which a majority are imported, connect solar panels and wind installations to electric grids by converting DC power to AC power.
While solar tech does typically have firewalls against outside incursion, the findings raised concern, according to Reuters.
ENERGY CHIEF ENVISIONS US NUCLEAR RENAISSANCE, RESTORING PIT PRODUCTION, LOCALIZING NUKE POWER
'We cannot afford to let our energy systems, our food supply, or any strategic assets fall into the hands of those who wish us harm – the time to act is now,' Steinhardt said in a statement.
Citing national security concerns, a bipartisan pair of senators introduced the Decoupling from Foreign Adversarial Battery Dependence Act, which would prohibit the government from buying batteries from some foreign sources over similar concerns.
'Our national security should not require reliance on components made by adversaries like China,' Sen. Maggie Hassan, D-N.H., said in drafting the bill with Sen. Rick Scott, R-Fla.
'This bipartisan legislation will help safeguard both our supply chains and our national security by preventing the Department of Homeland Security from purchasing Chinese batteries for the devices and technology that keep Americans safe.'
In comments to Fox News Digital on Monday, Scott called it 'terrifying' the CCP could have any control over the U.S. grid.
CLICK HERE TO GET THE FOX NEWS APP
'Communist China is an adversary, led by a ruthless, authoritarian regime that wants to undermine our national security, spy on our citizens, steal our technology, and destroy our economy,' Scott said.
'We cannot allow this regime to have access to the very systems and resources families and businesses depend on. That's why I've introduced legislation to cut off our dependence on Chinese-made batteries that serve as Trojan horses for their surveillance state, and I'm bringing back the Protect American Power Infrastructure Act to slam the door shut on any Chinese influence over our electric grid.'
Fox News Digital reached out to Gov. Phil Murphy as well as the Energy Department for comment.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Johnson Controls International PLC (JCI) Q3 2025 Earnings Call Highlights: Strong Growth and ...
Johnson Controls International PLC (JCI) Q3 2025 Earnings Call Highlights: Strong Growth and ...

Yahoo

time24 minutes ago

  • Yahoo

Johnson Controls International PLC (JCI) Q3 2025 Earnings Call Highlights: Strong Growth and ...

Organic Sales Growth: 6% increase. Segment Margins: Expanded 20 basis points to 17.6%. Adjusted EPS: Grew 11% to $1.05, exceeding guidance. Adjusted Free Cash Flow: Nearly doubled to $1.8 billion year-to-date. Orders Growth: 2% increase, with strength in the Americas and softness in China. Backlog: Grew 11% to $14.6 billion. Available Cash: Approximately $700 million at the end of the third quarter. Net Debt: Declined to 2.5 times, within the target range. Americas Organic Sales: Up 7%, driven by HVAC and Controls. EMEA Organic Sales: Grew 4%, led by 8% growth in Service. APAC Organic Sales: Increased 6%, with strong double-digit growth in Service. EMEA Adjusted Segment EBITDA Margin: Expanded 100 basis points to 14.1%. APAC Adjusted Margins: Expanded 70 basis points to 19.4%. Americas Adjusted Margin: Improved 10 basis points to 18.5%. System Backlog Growth: 11% increase. Service Backlog Growth: 8% increase. Full-Year Adjusted EPS Guidance: Raised to $3.65 to $3.68 per share, representing 14% to 15% growth. Free Cash Flow Conversion: Expected to be greater than 100% for the full year. Warning! GuruFocus has detected 2 Warning Sign with SKFOF. Release Date: July 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Johnson Controls International PLC (NYSE:JCI) reported strong third-quarter results with organic sales growth of 6% and adjusted EPS growth of 11%, exceeding guidance. The company achieved a significant improvement in adjusted free cash flow, nearly doubling to $1.8 billion year-to-date, with a target of over 100% free cash flow conversion for the year. JCI's backlog grew 11% to a record $14.6 billion, indicating strong demand for both Systems and Service solutions. The company is implementing a new business system focused on simplifying operations, accelerating growth, and scaling impact, which includes Lean principles and digitization. JCI is raising its full-year guidance for adjusted EPS and free cash flow conversion, reflecting confidence in continued strong performance. Negative Points The company faces ongoing softness in the Chinese market, which has impacted overall order growth. Tariff impacts have been a challenge, with some difficulty in recovering margins in certain markets. The sale of the Residential and Light Commercial HVAC business to Bosch is expected to have minimal impact on this year's share count, with benefits primarily accruing next fiscal year. JCI's Fire & Security segment is experiencing lower growth compared to HVAC, with opportunities for improvement identified but not yet realized. The company is undergoing a strategic review of its portfolio, which may lead to changes in business lines and potential exits, creating some uncertainty. Q & A Highlights Q: Joakim, as you approach five months on the job, what are your initial observations and key performance indicators (KPIs) you're focusing on to ensure the organization is moving in the right direction? How quickly can we expect tangible progress on the business's return profile? A: Joakim Weidemanis, CEO: Four months in, I've visited over 100 customers and 30 plants, gaining a good grasp of our opportunities. Our focus is on sharpening customer focus, driving growth through innovation, and leveraging our field position of 40,000 colleagues. We're deploying a new business system anchored in 80/20 simplification, Lean principles, and digitization to simplify, accelerate, and scale operations. We're starting with narrow focus areas to deliver early results and will expand over time. Q: How do you plan to accelerate growth in Fire & Security, and how can HVAC and Fire & Security leverage each other? A: Joakim Weidemanis, CEO: Fire & Security and HVAC serve similar customer bases but are fundamentally different businesses. While HVAC and Controls have higher growth potential, Fire & Security also have growth opportunities. We're deploying our new business system gradually across these areas and conducting a strategic review of our portfolio to ensure sustainable growth. Q: Can you address the opportunities for free cash flow improvement and whether the company can consistently achieve 100% conversion? A: Marc Vandiepenbeeck, CFO: We've made significant progress in cash flow, particularly in accounts receivable management. While we've improved conversion to over 100% this year, there are still structural headwinds like tax rates and CapEx. Our Lean transformation efforts will further enhance cash flow by reducing facilities needs and improving inventory management. Q: With record backlog, can you provide an initial framework for 2026 and plans for an Investor Day? A: Joakim Weidemanis, CEO: We're finalizing our internal plan for 2026, and while it's early to comment, our long-term algorithm remains mid-single-digit top-line growth and double-digit EPS growth. As we implement our new business system and strategic review, we expect better incrementals. We'll provide more details after closing the year and releasing Q4 results. Q: Can you explain the lower-than-expected order growth and the timeline for providing a longer-term financial outlook? A: Joakim Weidemanis, CEO: Orders in the Americas were strong, and EMEA performed well despite tough comparisons. China remains soft, but our core vertical markets are healthy. We're disciplined in pursuing higher-margin orders and focusing on Service growth. We'll provide a longer-term outlook as we finalize our strategic review and business system implementation. Q: How do you view the potential for margin improvement in Fire & Security, and what are the growth opportunities? A: Joakim Weidemanis, CEO: Fire & Security have growth potential, but HVAC and Controls offer higher growth and margin opportunities. We're addressing product gaps in Fire & Security and applying Lean principles to improve Service margins. Our strategic review will guide future decisions on portfolio optimization. Q: Can you discuss the sustainability of free cash flow conversion and the impact of the Residential and Light Commercial sale? A: Marc Vandiepenbeeck, CFO: The sale of Residential and Light Commercial was a headwind to cash flow conversion. We've fundamentally changed processes to improve cash flow, and we're confident in sustaining 95%+ conversion. Our Lean transformation will provide additional tailwinds over time. Q: What are the key factors affecting operating margins, and how do you see them evolving? A: Marc Vandiepenbeeck, CFO: Tariffs have impacted margins, but we've managed to recover most of the headwind. We're addressing stranded costs from the Residential and Light Commercial sale. Over time, our business system will drive margin improvement across regions, with opportunities in both commercial and operational areas. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio

HSBC launches $3bn share buyback despite second-quarter profit plunge
HSBC launches $3bn share buyback despite second-quarter profit plunge

Yahoo

time24 minutes ago

  • Yahoo

HSBC launches $3bn share buyback despite second-quarter profit plunge

Pre-tax profits at Europe's largest lender HSBC (HSBA.L) plunged 29% year-on-year to $6.3bn (£4.7bn) in its second quarter, mostly on account of impairment charges related to its investment in China's Bank of Communications ( and exposure to Hong Kong real estate. The bank recorded a $2.1bn impairment on its long-standing investment in Bank of Communications, adding to a $3bn charge taken earlier this year. The latest writedown includes a $1.1bn loss from a private placement of shares by the Chinese state-owned bank that diluted HSBC's stake. Expected credit losses rose by $900m year-on-year to $1.9bn, due in part to mounting stress in Hong Kong's property sector. Group CEO Georges Elhedery also cited rising macroeconomic risks. 'Structural challenges to the global economy have caused uncertainty and market volatility,' he said, referencing 'broad-based tariffs' and 'fiscal vulnerabilities.' Read more: Barclays posts profit beat and announces £1bn share buyback He added: 'This is complicating the inflation and interest rate outlook, creating greater uncertainty. Even before tariffs take effect, trade disruptions are reshaping the economic landscape.' Operating expenses rose 10% compared with the same quarter last year, driven by restructuring and higher investment in technology, the bank said. Net interest income — the difference between what the bank earns on loans and pays on deposits — was $8.5bn. Revenue for the first half of 2025 fell $3.2bn to $34.1bn, primarily reflecting the group's exit from its operations in Canada and Argentina. HSBC reported a pre-tax profit of $15.8bn for the first six months of the year, down 26%. Despite the earnings drop, the bank announced a new $3bn share buyback, which comes in addition to a $3bn program launched earlier this year. It declared a second interim dividend of 10 cents per share, matching the payout in the previous quarter. Return on average tangible equity (RoTE) stood at 14.7% for the first half, though HSBC cautioned that global economic conditions could affect future profitability. Read more: Lloyds increases dividend as profits jump by 5% 'While we would expect the direct impact from tariffs to have a relatively modest impact on our revenue, the broader macroeconomic deterioration may see RoTE excluding notable items fall outside of our mid-teens targeted range in future years,' the bank said. HSBC warned that lending demand would probably remain muted in the second half of the year, but said it expects further growth in its wealth management division. The lender also forecast a $1.4bn loss in the fourth quarter, tied to the planned sale of a French mortgage portfolio to Rothesay and CCF. Max Harper, an analyst at Third Bridge, said: "HSBC posted a miss this morning with transaction banking and wealth [being] bright spots, a trend our experts see continuing with opportunities for product innovation. Read more: What are share buybacks? "The macro environment should continue to benefit FX, while wealth focuses on digital innovation and expanding its private markets offering. Expenses were higher then expected, though they should still deliver on its cost-cutting programme and its mid-teens RoTE target for 2025-27. "The key challenge remains implementation, especially around senior staff costs. Their new operating model simplifies the structure to get closer to clients, supporting income growth and cross-selling. "Exiting non-core areas will allow more resources for core strengths like transaction banking and Asian wealth. The East-West split adds transparency and could ease a future breakup if political tensions rise, though that remains unlikely for now."Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Adidas says tariffs will add $231 million to second-half costs
Adidas says tariffs will add $231 million to second-half costs

Yahoo

time44 minutes ago

  • Yahoo

Adidas says tariffs will add $231 million to second-half costs

By Linda Pasquini and Helen Reid (Reuters) -Adidas said on Wednesday higher U.S. tariffs would add around 200 million euros ($231 million) to its costs in the second half, having impacted its second quarter results by "double-digit" millions of euros. Highlighting the impact of U.S. President Donald Trump's volatile trade policies, Adidas said uncertainty was holding it back from increasing its annual guidance despite reporting stronger than expected second-quarter profit. "We still do not know what the final tariffs in the U.S. will be," CEO Bjorn Gulden said in a statement. Another unknown is the indirect impact on consumer demand if the tariffs cause "major inflation", he added. Shares in Adidas were down 2.6% in premarket trade. The stock is already down 16% since the start of the year. The U.S. earlier this month announced a 20% levy on many Vietnamese exports and a 19% tariff on goods from Indonesia. Vietnam and Indonesia, Adidas' two biggest sourcing countries, made up 27% and 19% of the company's products respectively as of 2024. Like many other sportswear companies including Puma, Adidas has frontloaded product purchases into the U.S. to try and beat tariffs, driving its inventories up 16% to 5.26 billion euros at the end of June. Net sales, adjusted for currency swings, rose 2.2% to 5.95 billion euros ($6.9 billion) in the quarter, lower than analysts' average estimate of 6.2 billion euros, according to data compiled by LSEG. But quarterly operating profit reached 546 million euros, ahead of analysts' expectations for 520 million euros, a sign that Adidas is selling more products at full price. Adidas' gross margin increased by 0.9 percentage points to 51.7% in the quarter, as reduced discounting and lower product and freight costs mitigated the impacts from currencies and tariffs. Adidas is also having to contend with a stronger euro and weaker dollar, which hit sales by around 300 million euros in the quarter through June. ($1 = 0.8651 euros) Sign in to access your portfolio

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store