Honeywell To Sell Two Businesses
MORRIS TOWNSHIP, N.J. (AP) _ Honeywell International Inc. on Thursday announced plans to sell a friction materials unit and a pharmaceutical chemical business, claiming the changes will increase third-quarter earnings per share by 10 percent compared with the third-quarter of 1999.
Possible buyers for the two divisions have not been named.
The sale of the friction materials business includes Bendix, based in Troy, Mich., and will affect about 5,600 employees. The pharmaceutical chemical business, based in Morris Township, employs about 1,000 workers.
Honeywell anticipates earnings per share to be 76 cents, excluding the effects of portfolio changes, matching the expectations of analysts surveyed by First Call/Thomson Financial.
The company said it expects charges associated with the sales of the non-core businesses to range from $300 million to $350 million in the third quarter.
Company spokesman Tom Crane said Honeywell plans to sell other businesses within the next six to nine months, but declined to name them.
Crane said the sales are expected to be completed by early 2001.
Honeywell stock rose 37.5 cents, or by 1 percent, to $34.813 at the end of regular trading Thursday on the New York Stock Exchange.
The company employs 120,000 people worldwide. It sells aerospace products, power-generation systems, automotive products and specialty chemicals.
On the Net: http://www.honeywell.com