Honeywell Plans to Cut 6,500 Jobs

April 27, 2001
/ Print / Reprints /
/ Text Size+
MORRIS TOWNSHIP, NJ — Reporting results for the first quarter that were down sharply from the year before, Honeywell announced that it plans to cut 6,500 jobs.

The company reported first-quarter earnings per share (EPS) of $0.05, including a one-time charge of $595 million for cost-reduction measures, which was a 92% decline from prior-year earnings. Excluding the one-time charge, EPS was $0.51. Analysts had been expecting earnings of $0.58 per share.

Michael R. Bonsignore, chairman and ceo of Honeywell, said the company’s first-quarter results “reflect continued weakness in some end-markets and our ongoing efforts to reduce our cost structure and increase the growth potential of core businesses as we prepare to close our pending merger with General Electric.”

Honeywell said that it’s first quarter EPS was substantially affected by a challenging economic environment. First-quarter operating margin was 11.7%, compared to 13.8% last year. Margins were affected negatively by high energy and raw material costs. Free cash flow was $111 million compared to $265 million in the first quarter of 2000, reflecting higher working capital, lower profitability, and capital outlays for a Fluorine Products expansion project. Bonsignore explained that the first-quarter charge of $595 million is primarily related to company-wide cost-reduction activities. “Because of concerns over economic softness, we moved even more aggressively in the first quarter to reduce further our cost structure,” he said. “We are optimistic that we will see the benefits of these actions in the second half of this year and much more so in 2002.”

The job cuts of approximately 6,500 employees represent about 5% of the company workforce.

Publication date: 04/30/2001

Did you enjoy this article? Click here to subscribe to The NEWS Magazine

Recent Articles by Paula Liegl

You must login or register in order to post a comment.



Image Galleries

2014 World Energy Engineering Congress

Scenes from the 2014 World Energy Engineering Congress in Washington, D.C.


NEWSMakers: Jim Johnson

Jim Johnson,an experienced trade school and community college instructor, discusses the HVAC industry and his column in The NEWS, ‘The Service Ticket.’ Listen now for a hint to the Not Enough Heat question from the Dec. 15 issue. Posted Jan. 30.

More Podcasts


NEWS 01-26-15 cover

2015 January 26

Check out the weekly edition of The NEWS today!

Table Of Contents Subscribe

Regional Standards

With regional standards for a/c equipment going into effect in 2015, how do you think it will impact the industry?
View Results Poll Archive


2015 National Plumbing & HVAC Estimator

Every plumbing and HVAC estimator can use the cost estimates in this practical manual!

More Products

Clear Seas Research


Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications, Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.


Magazine image
Register today for complete access to Get full access to the latest features, Extra Edition, and more.


facebook icontwitter iconyoutube iconLinkedIn i con