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AlliedSignal profit soars
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October 15, 1998: 10:49 a.m. ET
High-tech firm meets estimates with 16% earnings jump, readies for AMP vote
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NEW YORK (CNNfn) - AlliedSignal Inc., the high-tech manufacturing firm that is locked in a bitter hostile takeover battle with AMP Inc., reported record third-quarter results Thursday.
The Morris Township, N.J., company posted net income of $329 million, or 58 cents per diluted share, for the quarter ended Sept. 30, in line with Wall Street estimates and up 16 percent from earnings of $292 million, or 50 cents per share, a year earlier.
Sales grew 2 percent to a record $3.74 billion from $3.66 billion last year.
"AlliedSignal continues to deliver strong results despite uncertain conditions in the global economy," Chairman and Chief Executive Lawrence A. Bossidy said. "Our strategy of investing in high-growth, high-margin businesses is paying off, and we're seeing the advantages of having a diverse portfolio of businesses. While some of our businesses are facing uncertain economic conditions, others are thriving, enabling us to deliver our promised 13 percent to 17 percent earnings growth."
For the first nine months, AlliedSignal earned $979 million, or $1.70 a dilute share, up 14 percent from $856 million, or $1.47 a share, a year ago.
The company made a $10 billion hostile takeover bid in August for AMP Inc., a Harrisburg, Penn.-based maker of electrical-connection devices. AMP has urged shareholders to reject the tender offer, bolstered its "poison pill" strategy and won legal protection against AlliedSignal's advances.
Earlier this week, however, AlliedSignal acquired 9 percent of AMP's outstanding shares, making AlliedSignal its largest shareholder.
AMP shareholders are being asked Thursday to expand AMP's board from its current 11 directors to 28 and to elect AlliedSignal's 17 nominees to the board under AlliedSignal's consent solicitation.
If approved, AlliedSignal will move one step closer to acquiring AMP.
Earlier this month, the Pennsylvania House of Representatives approved a bill that would stop AlliedSignal from seeking written consent from AMP shareholders for its takeover bid. The bill, however, allows shareholders to consider the offer at a special meeting.
Shares of AlliedSignal (ALD) fell ¼ to 36-3/16 early Thursday on the New York Stock Exchange.
Shares of AMP (AMP) were up 1/16 at 40-5/8 on the Big Board. 
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AlliedSignal
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