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News > Companies
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Honeywell settles suit
graphic December 21, 2001: 8:18 a.m. ET

Firm to pay $440M to Northrop, take $540M 4Q charge, but still hit forecasts.
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NEW YORK (CNN/Money) - Diversified manufacturer Honeywell International Inc. said it will take a $540 million charge to settle litigation and cover the cost of cancellation of a regional passenger jet, but said it still should hit its earlier earnings guidance for the fourth quarter.

Honeywell (HON: Research, Estimates) said it expects earnings per share excluding special charges of 54 to 56 cents, which matches the guidance for the period when it released third quarter results. Analysts surveyed by earnings tracker First Call are forecasting EPS of 55 cents, down from 70 cents a share a year ago.

The company said it sees fourth-quarter revenue of $5.7 billion, which is just below the First Call forecast of $5.8 billion in the period.

The company said it reached a settlement with Northrop Grumman Corp. (NOC: Research, Estimates) to terminate the patent infringement lawsuit brought against Honeywell in 1990 by Litton Industries, which recently was acquired by Northrop.

Northrop said it is to receive $440 million to settle the suit dealing with an aircraft navigation system. Honeywell also said it is transferring its interests in Bendix Commercial Vehicle Systems to Knorr-Bremse AG.

"Transferring our interests in the non-core Bendix Commercial Vehicle Systems business and settling the Litton case are both positive steps," Honeywell CEO Lawrence Bossidy said.

The company said the surprise decision of BAE Systems to terminate the RJX regional jet is disappointing, but that it should not cause significant problems for its AS900 engine family because of demand from other aircraft makers.

With the two charges, the company said, net income per share in the quarter should be 14 to 16 cents.

Shares of Honeywell,  a component of the Dow Jones industrial average, lost 37 cents to $32.43 Thursday. graphic





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Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.
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