Honeywell, Northrup Grumman Settle
MORRISTOWN, N.J. – Honeywell International Inc. has agreed to pay $440 million to Northrop Grumman Corp. to settle antitrust and patent lawsuits filed more than a decade ago.
Honeywell will pay $220 million in 2001, with the balance due in July 2002, Northrop Grumman said Friday.
Honeywell also announced that it has agreed to transfer its global interests in Bendix Commercial Vehicle Systems to Knorr-Bremse AG. The company expects to take an unspecified gain related to the deal in the first quarter of next year, said Honeywell spokesman Tom Crane.
And Honeywell reaffirmed its estimate that fourth-quarter earnings will range from 54 cents to 56 cents, excluding one-time charges.
The consensus forecast of analysts surveyed by Thomson Financial/First Call was for earnings of 55 cents a share before onetime items.
The Morris Township maker of aircraft engines, aviation electronics and other high-tech products projects fourth-quarter revenues of $5.7 billion.
The lawsuits being settled were filed in 1990 by Litton Industries, which was acquired by Los Angeles-based Northrop Grumman in April 2001. Honeywell was accused of patent infringement and monopolizing the inertial reference systems market for large commercial air transport, commuter and business aircraft.
Inertial reference systems, which calculate the precise position and spatial orientation of aircraft and nearby objects, are key components of aircraft navigation systems.
Honeywell said the agreement allows it to continue selling certain inertial reference and navigation systems free from any Northrop claims.
Honeywell expects a $540 million charge in the fourth quarter to cover the Litton settlement. The charge also will include costs related to British Aerospace's canceled RJX jet aircraft program, for which the company had planned to deliver 28 AS977 engines.
Including charges for the Northrop settlement, Honeywell expected fourth-quarter earnings to range from 14 cents to 16 cents.
Honeywell shares rose 77 cents to $33.20 in late morning trading Friday on the New York Stock Exchange.