Company expects no area layoffs AlliedSignal pruning 3,200 jobs but sparing Towson and Columbia

July 27, 1996|By Ted Shelsby | Ted Shelsby,SUN STAFF

AlliedSignal Inc. said yesterday that it expects to eliminate about 3,200 jobs over the next two years and close some factories, but the company said it does not expect the cost-cutting moves to affect its aerospace operations in Towson or Columbia.

Ronald Iori, a spokesman for AlliedSignal's aerospace sector in Torrance, Calif., said employment should remain stable at the Towson defense electronics plant and at the technical-services division in Columbia.

The restructuring also will involve the purchase of more components from outside suppliers, plant consolidations and the shift of some work to factories with lower operating costs, said Lawrence A. Bossidy, chairman and chief executive.

Bossidy said the moves were being made to boost competitiveness.

Although the company plans to eliminate 3,200 jobs, it will be hiring workers with other skills over the next three years, and total employment is expected to remain about 88,000.

Allied has about 1,000 workers at its Communications Systems plant on Joppa Road in Towson. In February, it announced 160 layoffs because of declining defense business.

An additional 45 layoffs were anticipated but were avoided when the plant received additional work related to the Patriot missile.

Officials at the Towson plant say they expect sales, which have ranged between $180 million and $200 million in recent years, to be off about 15 percent this year.

The layoffs involved 80 hourly workers, primarily on the factory production line, and 80 salaried employees, including engineers and administrative personnel.

Allied's workers in Towson are involved in the development and production of such things as electronic equipment to identify military aircraft, parts for the Patriot missile and equipment to secure the information in computers at the National Security Agency.

Iori said Allied's aerospace division is in line for about $150 million in subcontract work from Lockheed Martin Corp. related to the development of the X-33, a spacecraft being designed as an eventual replacement for the shuttle.

He said part of the work, including the production of communication equipment and range safety products, will go to the Towson plant.

AlliedSignal Technical Services Inc., based in Columbia, has about 3,000 employees.

It is the only part of AlliedSignal that does not produce a product. Rather, it provides technical and engineering services to the National Aeronautics and Space Administration, the Air Force and the Navy.

One of its big service contracts is with the Goddard Space Center in Greenbelt, where 1,500 AlliedSignal employees track satellites and space shuttle launches.

This week, AlliedSignal reported that its second-quarter earnings rose 16 percent, to a record $272 million, or 96 cents a share.

That compares with 1995's second-quarter net income of $227 million, or 80 cents a share.

Second-quarter sales were $3.35 billion, down from $3.63 billion in 1995.

Pub Date: 7/27/96

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