Global Fastener News

Honeywell to Cut 2,000 Aerospace Jobs

Jason Sandefur

Citing the need to streamline operations, Honeywell Inc. said it would trim 2,000 jobs from its aerospace division, which includes fasteners. According to the Associated Press, up to 20% of the job cuts would be through attrition and the rest through layoffs during the second half of 2005. The cuts are part of the division’s restructuring begun in July.
“A big part of the feedback we were getting from customers was that we were too complicated to do business with,” CEO Dave Cote stated. “People didn’t want to have to do business with three different parts of the organization.”
Honeywell announced sales for aerospace products, including fasteners, grew 8% to $2.65 billion during the second quarter of 2005. The company saw 14% growth in commercial markets offset by flat defense and space sales. Segment profit gained 13.3% to $416 million. Aerospace sales for the first six months of 2004 improved 8.3% to $5.15 billion, while profit rose 17.9% to $795 million.
Overall Q2 sales increased 10% to $7 billion, primarily due to organic sales growth in each of Honeywell’s four businesses. The company took a $155 million tax charge related to the repatriation of $2.7 billion of foreign earnings. Before the charge, Q2 net income was $461 million. First half sales gained 8.3% to $5.15 billion, while pre-tax profit jumped 17.9% to $795 million.
“Orders are up, pricing and productivity actions are offsetting higher commodity and raw materials costs, we introduced great new products and won important new contracts,” Cote noted. Web: honeywell.com �2005 FastenerNews.com