Summary
This 8-K filing from Honeywell International Inc. (HON) reports on the denial of their appeal by the Third Circuit Court of Appeals regarding a New Jersey environmental cleanup. The court upheld a previous decision ordering Honeywell to excavate and transport approximately one million tons of chromium residue from a predecessor site in Jersey City. As a result, Honeywell will record a pre-tax charge of $278 million in the fourth quarter of 2004. This charge will reduce reported 2004 earnings per share from $1.68 to $1.49. While the cleanup is expected to take five years and incur costs evenly over that period, Honeywell does not anticipate a material adverse effect on its future consolidated results, operating cash flows, or financial position.
Key Highlights
- 1Third Circuit Court of Appeals denied Honeywell's appeal concerning environmental remediation in Jersey City.
- 2Court orders Honeywell to excavate and transport approximately 1 million tons of chromium residue.
- 3Honeywell will record a pre-tax charge of $278 million in Q4 2004 for the cleanup costs.
- 4Reported 2004 earnings per share will be reduced from $1.68 to $1.49 due to the charge.
- 5Remediation is expected to be completed over a five-year period with costs incurred evenly.
- 6Honeywell does not expect a material adverse effect on future financial results or position.