Honeywell announces 3,800 more job cuts, lowers earnings
projections
Associated Press
Published Sep 19 2001
MORRIS TOWNSHIP, N.J. -- Honeywell International
announced 3,800 new job cuts and lowered its third-quarter
earnings projections Tuesday, citing a downturn in the
commercial air transport industry.
The high-tech manufacturer announced it would cut a total of
12,000 jobs, or 10 percent of its 120,000-person work force,
companywide by year's end. That figure includes about 3,800
new job cuts, said spokesman Tom Crane.
Honeywell also said third-quarter earnings will fall short of
estimates, coming in at 43 to 45 cents per share. Analysts
surveyed by Thomson Financial/First Call had projected 53
cents.
Honeywell also said its full-year earnings per share would range
from $2 to $2.10; analysts had projected $2.20.
The company said its cost-cutting measures were expected to
save $500 million in 2002. It said it expected a renewed interest
in business jet travel to help offset lost income from its
commercial air transport business.
Honeywell manufactures aerospace and automotive products, as
well as engineered materials, including chemicals, fibers and
plastics.
Harriet Baldwin, an analyst for Deutsche Bank, said the revised
earnings projections were no surprise, given the slowing
economy, and Honeywell's cost-cutting would help it to
weather the troubles in the air transport industry. "This is a
difficult time for all industrial manufacturers," she said.
Honeywell shares fell 99 cents Tuesday to $28.51.
Separately, European competition commissioner Mario Monti
defended blocking General Electric Company's $41 billion bid
for Honeywell this year, saying the legal reasoning based on
"bundling" was sound.
The EU rejected the merger July 3 largely because it feared GE
and Honeywell could have squeezed out rivals in the aviation
business by offering customers a "bundled" package of jet
engines, avionics and financing.
Speaking to EU parliamentarians nearly a week after the
companies appealed the case, Monti said Tuesday that the
concept "has been used in many competition policy decisions in
many countries," including the United States.
The decision drew sharp criticism from U.S. politicians and
antitrust experts. The companies appealed Sept. 12 to the EU's
Court of First Instance in Luxembourg.
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