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AlliedSignal Will Earn $0.60 In Second Quarter, Up 15%

19 June 1998

AlliedSignal Will Earn $0.60 In Second Quarter, Up 15%; Expects 15% Operating Margins By 2000

    MORRIS TOWNSHIP, N.J.--June 18, 1998--AlliedSignal Inc. said today that it expects to report diluted earnings of $0.60 per share for the quarter ending June 30, 1998, an increase of 15% over 1997 second-quarter diluted earnings of $0.52 per share. The company plans to report second-quarter results on July 21, 1998.
    In planned remarks to an investor group this evening, Lawrence A. Bossidy, Chairman and Chief Executive Officer of AlliedSignal, said that he expects the company to achieve 15% operating margins by the year 2000, up from 11.4% in 1997.
    Bossidy also said that despite the relaxation of acquisition initiatives resulting from the recently announced stock repurchase plan, the company's drive for growth will remain a key objective. Growth is expected to come from three sources:

-- General growth of many of the markets in which the company
    competes;

-- Aggressive gains in the company's share of these markets through
    intensive marketing efforts as well as product quality and cost
    advantages; and

-- New product offerings, including TurboGenerator(TM); flight safety
    systems, including the Enhance Ground Proximity Warning System;
    custom pharmaceutical chemical formulations; new plastics and
    films applications; airline outsourcing services for spare parts
    supply, repair and overhaul; new car-care products; and 140 other
    new product ideas in the pipeline.

    The company also said that as a result of its reorganization late last year, it would begin reporting results in five business segments. Following are the names of the segments and the business units and principal products which they include:

-- Aerospace Systems, which includes four business units: Aerospace
    Equipment Systems (environmental control systems; engine and fuel
    controls; electric, hydraulic and pneumatic power systems;
    aircraft lighting; aircraft wheels and brakes); Electronic &
    Avionics Systems (flight safety, communications, navigation,
    radar and surveillance systems for commercial, general and
    military aircraft; advanced systems and instruments for defense
    and space markets); Aerospace Marketing Sales & Service (repair
    and overhaul services; hardware; logistics; management and
    technical services for space and communications facilities); and
    Federal Manufacturing & Technologies (management of U.S.
    government facilities).

-- Specialty Chemicals & Electronic Solutions, which includes
    Specialty Chemicals (fluorine-based refrigerants, blowing agents,
    solvents, chemicals and sterilants; pharmaceutical and
    agricultural chemicals; specialty waxes, adhesives and sealants;
    luminescent pigments and photographic dyes; electronic chemicals;
    carbon materials; and process technology); and Electronic
    Materials (insulation materials for integrated circuitry;
    copper-clad laminates for printed circuit boards; advanced chip
    packaging; and amorphous metals).

-- Turbine Technologies, which includes aerospace Engines (auxiliary
    power units for commercial, business and general aircraft;
    propulsion engines for regional, business and general aircraft;
    turboshaft engines for helicopters; and industrial gas turbine
    engines); and Turbocharging Systems (Garrett(R) turbochargers for
    cars, trucks, buses and construction equipment; charge air
    coolers; and TurboGenerator(TM) portable power systems).

-- Performance Polymers, which includes the Polymers unit (Anso(R)
    nylon carpet fiber; industrial polyester fiber; plastics resins
    for auto parts, garden equipment and power tools; specialty films
    for electronics, pharmaceutical and food packaging; intermediate
    chemicals; and Spectra(R) bullet-resistant fiber).

-- Transportation Products, which includes the Automotive Products
    Group (Prestone(R), FRAM(R), Autolite(R) and Holts(R) consumer
    car care products, including anti-freeze, filters, spark plugs,
    cleaners, waxes and additives; and Bendix(R) and Jurid(TM)
    friction materials) and Truck Brake Systems (Bendix(R) air brake
    and anti-lock braking systems).