AlliedSignal Reports Profit Jumped 20% in 2nd Quarter
April 03, 2011
NEW YORK -- AlliedSignal Inc. reported net jumped 20% in the second quarter, smartly outperforming Wall Street forecasts. The Morristown, N.J.-based maker of aerospace and automotive parts said its profit was 93 cents per share, excluding special items, which topped analysts' predictions by two cents a share. The company said net income was $272 million, or 96 cents a share, compared with $227 million, or 80 cents a share last year. This year's figures include a gain of $368 million, or $1.30 a share, from the April sale of its braking-systems business, which was largely offset by repositioning and environmental charges of $359 million, or $1.27 a share. Revenue declined 7.8% to $3.35 billion from $3.63 billion, reflecting the sale of the braking business. Shares of AlliedSignal were up $1.25 at $56.625 in afternoon trading on the New York Stock Exchange. Excluding special items, the company's second-quarter operating margin rose to a record 11.4% compared with 9.8% for the same period last year. Free cash flow of $42 million was slightly higher than in the year-earlier quarter. Free cash flow does not include the $1.5 billion of proceeds from the sale of the braking business. As a result of the sale, the company's cash position at mid-year was $2.0 billion, including $300 million related to the braking-business sale, which is expected to be released from escrow at the end of July.
