Summary
This 8-K filing by Honeywell International Inc. (HON) on July 5, 2001, announces two significant events impacting the company. Firstly, the European Commission has officially prohibited the proposed merger between Honeywell and General Electric Company. This decision marks the end of a long and complex regulatory process. Secondly, Honeywell's Chairman and CEO, Michael R. Bonsignore, is retiring after 31 years of service, and Lawrence A. Bossidy has been appointed as the new Chairman and CEO. Bossidy, who previously led AlliedSignal to significant success and was instrumental in the merger that created the current Honeywell, is returning to lead the company as an independent entity. The company has also provided updated financial guidance for the second quarter and full-year 2001, indicating expected revenues, ongoing earnings per share (EPS), and free cash flow. This leadership transition and the resolution of the GE merger are key developments for investors to consider.
Key Highlights
- 1European Commission prohibits the proposed merger of Honeywell and General Electric Company.
- 2Michael R. Bonsignore, Chairman and CEO, retires after 31 years of service.
- 3Lawrence A. Bossidy appointed as the new Chairman and CEO.
- 4Bossidy is tasked with re-energizing the company's people and portfolio and re-establishing consistent earnings growth.
- 5Honeywell forecasts Q2 2001 revenue of $6 billion and ongoing EPS of $0.53-$0.55.
- 6Honeywell forecasts full-year 2001 revenue of $24-$24.5 billion and ongoing EPS of $2.15-$2.30.
- 7The company expects Q2 2001 free cash flow between $175 million and $200 million, and full-year free cash flow between $900 million and $1 billion.