Honeywell's Cost-Reduction Activities And Diversity Of Business Portfolio Expected To Help Minimize Effects Of Commercial Air Transport Downturn
MORRIS TOWNSHIP, N.J.--Sept. 18, 2001--Company Expects Ongoing 3rd-Quarter EPS To Range From $0.43 To
$0.45; Full-Year Ongoing EPS Expected To Range From $2.00 To $2.10
Honeywell said today that ongoing cost-reduction initiatives and the broad diversity of its business portfolio are expected to help minimize the effects of the emerging downturn in the commercial air transport industry.
"Honeywell is engaged in aggressive and comprehensive productivity, digitization and cost-reduction initiatives," said Honeywell Chairman and CEO Lawrence Bossidy. "Since July, we have redoubled our cost-reduction actions across the company and further intensified our drive to fundamentally address our cost competitiveness. These actions, and our efforts throughout 2001, are expected to deliver an additional $500 million in savings in 2002. Our total census reduction in 2001 will exceed 12,000.
"While the downturn in commercial air transport is abrupt, Honeywell's commercial air transport revenues represent approximately 15% of the company's annual revenue, which is about equal to our defense and space business revenues and half the size of our automation and control portfolio," Bossidy continued. "We expect strong defense aftermarket revenues combined with some renewed interest in business jet travel to partially offset softness in commercial air transport markets. These factors plus accelerated cost productivity gains are expected to help offset income lost from the commercial air transport business."
"The rich diversity of Honeywell's portfolio - particularly our Automation and Control, Materials and Transportation businesses - also makes us well-positioned to partially mitigate any single-market impact," Bossidy added.
The company said it expects third-quarter ongoing earnings per share (EPS) to range from $0.43 to $0.45, with full-year ongoing EPS to range from $2.00 to $2.10. Ongoing fourth-quarter EPS is expected to be higher compared to the third quarter. Bossidy said, "as we look to 2002, we expect our cost-reduction and portfolio actions to lead to improved earnings performance compared to 2001."
"We will provide more information about our comprehensive cost-reduction actions and breadth of portfolio diversity during our financial analyst meeting on Monday, September 24, in New York City."
Honeywell is a US$25-billion diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; automotive products; power generation systems; specialty chemicals; fibers; plastics; and electronic and advanced materials. Honeywell employs approximately 120,000 people in 95 countries and is traded on the New York Stock Exchange under the symbol HON, as well as on the London, Chicago and Pacific stock exchanges. It is one of the 30 stocks that make up the Dow Jones Industrial Average and is also a component of the Standard & Poor's 500 Index. Additional information on the company is available on the Internet at www.honeywell.com.
This release contains forward-looking statements as defined in Section 21E of the Securities Exchange Act of 1934, including statements about future business operations, financial performance and market conditions. Such forward-looking statements involve risks and uncertainties inherent in business forecasts as further described in our filings under the Securities Exchange Act.