Honeywell To Cut 6,500 Jobs
MORRIS TOWNSHIP, N.J. (AP) _ High-tech manufacturer Honeywell International Inc, which saw first-quarter profits drop 92 percent, is planning to cut 6,500 jobs.
The job cuts, which represent about 5 percent of its work force, come as the maker of aerospace, automotive and electronic products is being acquired by Fairfield, Conn.-based General Electric Co.
Honeywell, based in Morris Township, said Friday it had first quarter net income of $41 million, or 5 cents per share, down from $506 million, or 63 cents per share, the quarter ending March 31.
Adjusted for one-time gains and losses, the company earned $415 million, or 51 cents per share, this year. That fell short of a forecast of analysts surveyed by Thomson Financial/First Call, who were expecting earnings of 58 cents per share.
Sales dipped to $5.95 billion, down from $6.04 billion in the year-ago period.
The company said the decrease in earnings stemmed from a slowing economy and high raw material costs, as well as cost-cutting measures as it works to close its deal with GE.
Shares of Honeywell were off 85 cents to $46.79 in morning trading on the New York Stock Exchange. Shares of GE were down 70 cents to $47.71.
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