Honeywell Board Names Cote From TRW Chairman, CEO
By Andy Pasztor, Joann Lublin and Anne Marie SqueoStaff Reporters of The Wall Street Journal
Feb. 20, 2002 11:38 am ET
Four months before Honeywell International Inc. Chairman and Chief Executive Lawrence A. Bossidy's scheduled retirement, the company's board chose David M. Cote, 49 years old, the chairman and CEO of TRW Inc., to be his successor.
The surprise move, capping weeks of behind-the-scenes deliberations while Honeywell's board considered a number of other aerospace-industry executives, immediately prompted TRW to respond by appointing three veteran executives to share an interim, newly created office of the chief executive.
The abrupt leadership changes come at a time of stiff challenges for both companies as they strive to rebuild their aerospace businesses in the face of the commercial airline slump caused by the Sept. 11 attacks. While Wall Street analysts and industry officials don't expect any strategic shifts in the short run, the appointments could open the door to some longer-term changes in direction. Both companies already have been mulling selling some nonaerospace assets. They also are looking to benefit from increased spending by the Pentagon, U.S. intelligence agencies and the government's new civilian air-security operations.
To reassure investors, Honeywell, Morristown, N.J., and TRW, Cleveland, issued separate statements emphasizing that each company is sticking with its previously announced earnings guidance through the end of the year.
At Honeywell, Mr. Cote will immediately assume the twin titles of president and CEO, and he will become chairman upon Mr. Bossidy's previously scheduled retirement at the end of June. Mr. Cote is stepping in after Mr. Bossidy, 66, has sought to pump up morale, made the painful decision to settle some longstanding patent litigation and overseen the last phases of a cost-reduction drive that will end up eliminating 19,000 jobs over two years. At this point, Honeywell is hinting about making selective acquisitions, perhaps in the aerospace replacement-parts segment.
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