Honeywell To Repurchase Up to 40 Million Shares Of Its Common Stock
21 July 2000
Plan Represents Approximately $1.5 Billion At Current Share Price
MORRIS TOWNSHIP, New Jersey - Honeywell said today that it will repurchase up to 40 million shares of its common stock, representing approximately $1.5 billion at today's market price. The company said the share repurchase is expected to be substantially completed by the end of 2001."In light of current market-price levels and Honeywell's promising future growth prospects, our stock is clearly undervalued and represents a very attractive investment," said Michael R. Bonsignore, Honeywell's Chairman and Chief Executive Officer.
"We will fund the repurchase with free cash flow and some of the proceeds from the sale of non-core businesses," Bonsignore added. "The repurchase demonstrates our confidence in the strength of Honeywell's global franchises, and when coupled with the divestitures highlights our commitment to enhance shareowner value, maintain a strong credit profile and preserve our flexibility to grow."
The timing and total amount of the shares repurchased will depend on market conditions.
Honeywell is a US$24-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. The company is a leading provider of software and solutions, and Internet e-hubs including MyPlant.com, MyFacilities.com and MyAircraft.com (joint venture with United Technologies and i2 Technologies). 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.