Advertisement
YOU ARE HERE: LAT HomeCollections

Allied-Signal to Sell Oceanics, 2 Other Units : Completes Consolidation of Garrett and Bendix

March 31, 1988|RALPH VARTABEDIAN | Times Staff Writer

Allied-Signal Aerospace, a Torrance-based unit of Allied-Signal, said Wednesday that it has completed consolidation of its Bendix and Garrett operations and plans to sell three divisions with combined annual sales of about $200 million.

The divestitures will include the firm's Oceanics division in Sylmar, a leading producer of sonar equipment for the Navy.

The operation, which posted 1987 sales of $107 million, employs 1,008 workers.

Allied-Signal announced last year that it was dissolving its Garrett and Bendix operations as autonomous units and combining them under the new Allied-Signal Aerospace operation.

The consolidation resulted in the elimination of about 2,000 jobs, including 200 administrative staff positions, the company said.

Sales Remain High

"The consolidation and staff reductions, as well as the divestitures of the non-aircraft-related business units, are designed to improve our operating performance and margins, and to reduce costs," said Robert L. Kirk, chairman and chief executive of Allied-Signal Aerospace.

"The changes will help us respond more efficiently to customer needs and the challenges facing today's aerospace industry.

"These actions will concentrate the company's efforts in those markets where we are established leaders," he continued.

"One-half of our sales will continue to come from the military market, with the other 50% from commercial customers.

"Our backlogs and sales remain at high levels," Kirk said.

The other divisions that Allied-Signal intends to sell are the Environmental Systems division in Towson, Md., and the Fluid Power division in Utica, N.Y.

The combined sales of the three divisions represent about 4% of Allied-Signal Aerospace revenue.

Advertisement
Los Angeles Times Articles
|
|
|