Allied Signal's Earnings Rose 15 Percent In Quarter

Aerospace Division's Sales, Profit Lead Way

April 25, 1997|By BLOOMBERG NEWS

MORRIS TOWNSHIP, N.J. -- AlliedSignal Inc.'s first-quarter earnings rose 15 percent, led by higher sales and profit at its aerospace division.

AlliedSignal's net income rose to $259 million, or 92 cents a share, from $225 million, or 80 cents, a year earlier. Revenue rose 3 percent to $3.3 billion from $3.2 billion, excluding the automotive brake business sold last year.

For more than two years, the aerospace division, which makes engines, spare parts, environmental-control systems, cockpit recorders and collision-avoidance systems, has led the company's financial performance as airplane makers have boosted production to meet airlines' demand.

Included in the division are the company's Communications Systems unit in Towson and its Technical Services Corp. in Columbia. They employ about 4,000 workers in Maryland.

The company's earnings were "very much on target," said Paul Nisbet, an analyst with JSA Research in Newport, R.I.

Although the Morris Township, N.J.-based company's earnings matched the average estimate of nine analysts surveyed by IBES International Inc., AlliedSignal's stock fell $3.875, to $69.875.

The decline was attributed in part to the fact the stock rose $3.875 this week in advance of the earnings report.

In the latest quarter, the aerospace division's revenue rose 7.7 percent to $1.4 billion from $1.3 billion, and its operating profit rose 39 percent to $99 million from $71 million.

AlliedSignal's auto-parts division, which makes oil and air filters, spark plugs, air bag and seat belt systems, as well as brake components with the brand names Bendix, Fram, and Autolite, had revenue of $927 million, up from $920 million, while operating profit rose 11 percent to $52 million from $47 million, excluding the divested braking business.

Revenue from the company's materials division was $1 billion, unchanged from the year-earlier quarter, while operating profit fell less than 1 percent to $108 million from $109 million.

Pub Date: 4/25/97

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