Bossidy Shakes Up Allied Signal
Ninety days. That's all Lawrence Bossidy needed to size up Allied-Signal. What he saw initially when he took over as CEO last July was a bloated and struggling $12.3 billion manufacturer of aerospace, automotive, and chemical products. Profits were off 37% through the first half. So General Electric's former vice-chairman has moved to consolidate operations and improve efficiency.
Bossidy's restructuring of Allied's businesses is a drastic one. Allied plans to lay off more than 8,000 employees, divest eight small units, consolidate manufacturing operations, cut planned capital expenditures by 24%, and almost halve its dividend. All told, the $880 million write-off is expected to result in a loss for 1991. Allied stock rose 4 1/4 on the news, to 40 3/8.
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