AlliedSignal To Realign Aerospace Businesses (Jan.6)
MORRIS TOWNSHIP, N.J.-- AlliedSignal Inc. announced today that it will realign its aerospace businesses to strengthen their market and customer focus, simplify the business structure and reduce costs. ;Lawrence Bossidy, Chairman and Chief Executive Officer, said the realignment is expected to save the company between $30 and $50 million annually and will have a positive effect on 1999 free cash flow. ;The company also announced three key appointments in the aerospace business to lead the realignment, which comes as the result of an ongoing internal study of the aerospace business started in October 1998 and led by Frederic Poses, President and Chief Operating Officer. ;``We are very pleased with the performance of most of our aerospace businesses,'' Bossidy said, ``and we're convinced we can make them even more customer responsive, simpler and cost effective. We expect to complete the realignment in the first quarter of 1999.''
The executive appointments are: - Robert Johnson, President of AlliedSignal Electronic & Avionics Systems (EAS) was named President of AlliedSignal Marketing Sales & Services (MS&S). - Frank Daly, Vice President of AlliedSignal Commercial Air Transport Avionics, will succeed Johnson as President of EAS. - Joseph DeSarla, Senior Vice President of Operations for AlliedSignal Aerospace Equipment Systems (AES), was named President of AES. ;``Under the leadership of Fred Poses, these three executives, together with Steve Loranger, President of AlliedSignal Engines, will lead the realignment program and play major roles in the new aerospace organization,'' Bossidy said. ``These efforts are a continuation of the evolution of the aerospace organization and will enable AlliedSignal to compete more effectively in the rapidly changing market conditions in the aerospace industry. ;``As President of EAS, Bob Johnson has demonstrated outstanding leadership and improved customer and employee satisfaction, while converting a breakeven operation into one of AlliedSignal's leading operating-margin businesses,'' Bossidy continued. ``Prior to that, Bob ran the Aerospace Services business within MS&S. Frank Daly is a major figure in the global avionics industry, with 17 years of experience, and most recently led the introduction of our proprietary Enhanced Ground Proximity Warning System. Joe DeSarla has been managing AES's operations since early 1998 and has been a key factor in AES's outstanding sales and earnings growth during that period.'' ;AlliedSignal's MS&S business was formed in 1994 as a consolidation of the company's aerospace marketing, sales, service, repair and overhaul and distribution capabilities. MS&S serves as a single point of contact for each of these areas for customers across its aerospace businesses. ;Electronic & Avionics Systems business provides advanced electronics and avionics for commercial and regional transport; business and general aviation; military aircraft; defense and space systems. The business is an industry leader in the area of safety avionics. ;Aerospace Equipment Systems is a world leader in environmental control systems, cabin pressurization, wheels and brakes and engine control systems. ;AlliedSignal Engines designs and manufactures auxiliary power units for commercial and regional airlines, business and military aircraft and turbofan, turboshaft and turboprop propulsion engines for business aviation, regional airlines, military aircraft and marine and industrial markets. ;AlliedSignal Inc. is a $15 billion advanced manufacturing and technology company serving customers worldwide with aerospace and automotive products, chemicals, fibers, plastics and advanced materials. The company employs 70,500 people worldwide. -ends- AlliedSignal To Realign Aerospace Businesses (Jan.6)