Honeywell Reports $540 Million in ChargesJanuary 01, 2002 by Jeff Shepard
Honeywell International Inc. (Morristown, NJ) announced that it will take a $540.0 million charge against its fourth-quarter results to account for a patent litigation settlement and costs from the loss of a jet engine contract.
Honeywell stated that excluding the charge, its fourth-quarter earnings would be in line with current expectations, and that the company said it remains on track for $1.3 billion in cost savings next year as it sheds 15,800 jobs by the end of 2001 and closes 51 facilities. Excluding the Litton suit charges and the contract loss, Honeywell said earnings from ongoing operations would range from $0.54 to $0.56 per share on sales of about $5.7 billion. Including the charges, Honeywell said earnings for the fourth quarter will range from $0.14 to $0.16 per share.
“Settling the time-consuming and distracting Litton case is good news for the company and our investors, as we eliminate the risk of the outstanding judgement of nearly $800.0 million and the potential of a $1.2 billion liability,” stated Honeywell Chairman and CEO Lawrence Bossidy.