Honeywell Does Cost Cutting to Boost Quarterly Net Income
BOSTON
Honeywell Int’l Inc. said July 17 its cost cutting boosted
quarterly net income, but lowered its full-year profit
forecast as demand for some of its products not related to
electronic security has not come back as fast as expected
in the wake of the Sept. 11 attacks, according to Reuters.
Honeywell reported net income of $459 million, or 56 cents a share, compared with $50 million, or 6 cents a share, in the year-ago quarter. Earnings from ongoing operations rose $4 million, to $454 million, or 55 cents a share. Those results excluded a $98 million after-tax gain on the sale of a business and a $93 million net charge related to severance costs, plant shutdowns and asset impairments.
Cost cutting and performance initiatives saved about $350 million in the quarter, Honeywell said. “Cost cutting is forever,” Honeywell CEO David Cote said. But Cote also vowed to renew Honeywell’s organic growth, according to Reuters.
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