First-quarter net income at AlliedSignal Inc. rose 12 percent compared with the same portion of last year, the company said yesterday.
Its $335 million in net income, or 59 cents per diluted share, was a first-quarter record for the New Jersey conglomerate and beat last year's mark of $300 million or 52 cents per share.
The rise came despite several divestitures that took place in 1998, including the sale to Raytheon Co. of a military electronics plant in Towson. Total sales for the first quarter were $3.6 billion, down 1 percent from the year-ago period.
Without the streamlining, sales would have been up 4 percent, the company said.
"AlliedSignal's strong first-quarter performance reflects the company's efforts over the past several years to improve the portfolio, reduce the cost base and realize the cash-flow potential of all our businesses," said Lawrence A. Bossidy, chairman and chief executive officer.
With corporate headquarters in Morris Township, N.J., AlliedSignal maintains a sizable Maryland presence with its Technical Services Corp. unit in Columbia, which has about 5,500 employees at sites around the country. Its engineers manage and control satellites for the National Aeronautics and Space Administration, as well as provide service and support for other space-related programs.
Analysts agreed that the latest results indicate that the highly diversified corporation -- which makes aerospace products such as jet engines as well as automotive parts, chemicals, fibers and plastics -- is doing an effective job of adapting to changing markets.
Pub Date: 4/14/99