Honeywell Intl. Inc. announces that it expects second-quarter earnings per share (EPS) to be 75 cents, up 14 percent compared to 1999 second-quarter EPS of 66 cents (excluding one-time items in both periods). However, the manufacturing giant plans to eliminate underperforming units, cut another 5 percent of its roughly 120,000 workers and take a charge of $75 million to $100 million. “We are implementing a series of aggressive cost-cutting initiatives across the company to address the shortfalls in our business performance,” says Honeywell Chairman and CEO Michael R. Bonsignore. “With these actions, we expect earnings-per-share growth in 2001 to range from 10 percent to 15 percent. Despite the shortfalls some businesses are experiencing, Honeywell is a strong, fundamentally sound company.”
The company has adjusted its full-year EPS estimate to $3 to $3.05 (up 12 percent to 14 percent from 1999), with full-year sales expected to grow by 8 percent to 10 percent. Honeywell is a $24 billion diversified technology and manufacturing firm employing approximately 120,000 people in 95 countries.