SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 28, 1998
AlliedSignal Inc.
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(Exact name of registrant as specified in its charter)
Delaware 1-8974 22-2640650
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(State or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification Number)
incorporation)
101 Columbia Road
P.O. Box 4000
Morristown, New Jersey
07962-2497
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (973) 455-2000
Item 5. Other Events.
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AlliedSignal Inc. issued a press release on January 28, 1998
reporting the following results for operations for the three-
month and twelve-month periods ending December 31, 1997.
AlliedSignal Inc.
Consolidated Statement of Income
(In millions except per share amounts)
(Unaudited)
TWELVE MONTHS
ENDED DECEMBER 31
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1997 1996
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Net sales $14,472 $13,971
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Cost of goods sold 11,481(A) 11,606(C)
Selling, general and administrative expenses 1,581 1,511
Gain on sale of business (226)(B) (655)(D)
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Total costs and expenses 12,836 2,462
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Income from operations 1,636 1,509
Equity in income of affiliated companies 178 (A) 143
Other income (expense) 77 87 (C)
Interest and other financial charges (175) (186)
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Income before taxes on income 1,716 1,553
Taxes on income 546 533
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Net Income $1,170 $1,020
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Earnings per share of common stock-basic (E) $2.07 $1.80
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Earnings per share of common stock -
assuming dilution (E) $2.02 $1.76
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Weighted average number of shares
outstanding-basic (E) 565 566
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Weighted average number of shares
outstanding-assuming dilution (E) 580 580
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(A) Cost of goods sold includes a provision of $237 million for
repositioning and other charges. A charge of $13 million
relating to the writedown of an equity investment is included
in equity in income of affiliated companies. Total pretax
repositioning and other charges were $250 million (after-tax
$159 million, or $0.28 per share).
(B) Includes the fourth quarter pretax gain of $277 million
(after-tax $196 million, or $0.35 per share) on the sale of
the automotive safety restraints business effective
November 1, 1997. Also includes a charge of $51 million
(after-tax $33 million, or $0.06 per share) related to the
settlement of the 1996 braking business sale.
(C) Cost of goods sold includes a second quarter provision of
$637 million for repositioning and other charges. An
offsetting credit of $15 million representing the minority
interest share of repositioning and other charges is included
in other income (expense). Total pretax repositioning and
other charges were $622 million (after-tax $359 million, or
$0.63 per share).
(D) Represents the second quarter pretax gain (after-tax $368
million, or $0.65 per share) on the sale of the hydraulic
braking and anti-lock braking systems business effective April
1, 1996.
(E) Effective in the fourth quarter of 1997 the Company
implemented FASB No. 128 which establishes new requirements
for computing and presenting earnings per share and requires the
disclosure of basic and diluted earnings per share. The prior
year earnings per share data has been recalculated to reflect
the provisions of FASB No. 128. Share and per share data for
all periods reflect the September 1997 two-for-one stock
split.
AlliedSignal Inc.
Consolidated Statement of Income
(In millions except per share amounts)
(Unaudited)
THREE MONTHS
ENDED DECEMBER 31
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1997 1996
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Net sales $3,910 $3,498
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Cost of goods sold 3,272 (A) 2,761
Selling, general and administrative expenses 436 365
Gain on sale of business (226)(B) --
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Total costs and expenses 3,482 3,126
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Income from operations 428 372
Equity in income of affiliated companies 38 (A) 39
Other income (expense) 15 28
Interest and other financial charges (44) (42)
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Income before taxes on income 437 397
Taxes on income 123 127
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Net Income $314 $270
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Earnings per share of common stock-basic (C) $0.56 $0.48
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Earnings per share of common stock -
assuming dilution (C) $0.55 $0.46
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Weighted average number of shares
outstanding-basic (C) 562 566
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Weighted average number of shares
outstanding-assuming dilution (C) 576 582
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(A) Cost of goods sold includes a provision of $237 million for
repositioning and other charges. A charge of $13 million
relating to the writedown of an equity investment is included
in equity in income of affiliated companies. Total pretax
repositioning and other charges were $250 million (after-tax
$159 million, or $0.28 per share).
(B) Includes the pretax gain of $277 million (after-tax $196
million, or $0.35 per share) on the sale of the automotive
safety restraints business effective November 1, 1997. Also
includes a charge of $51 million (after-tax $33 million, or
$0.06 per share) related to the settlement of the 1996 braking
business sale.
(C) Effective in the fourth quarter of 1997 the Company
implemented FASB No. 128 which establishes new requirements
for computing and presenting earnings per share and requires the
disclosure of basic and diluted earnings per share. The prior
period earnings per share data has been recalculated to
reflect the provisions of FASB No. 128. Share and per share
data for all periods reflect the September 1997 two-for-one stock
split.
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The following table sets forth earnings per share of the Company
as recalculated pursuant to FASB No. 128 for the years ended
December 31, 1996, 1995, 1994, 1993 and 1992 and for the nine-
month periods ended September 30, 1997 and 1996. This
information is qualified by reference to the financial statements
and other information and data contained or incorporated by
reference in the Company's Annual Report on Form 10-K for the
year ended December 31, 1996, and its Quarterly Report on Form 10-
Q for the three- and nine-months period ended September 30, 1997.
Selected Financial Information
(Unaudited)
Nine Months
Ended
September 30, Year Ended December 31,
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1997 1996 1996 1995 1994 1993 1992
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Per Share of
Common Stock:
Basic --
Earnings before
cumulative
effect of
changes in
accounting
principles.. $1.51 $1.33 $1.80 $1.54 $1.34 $1.16 $ .95
Net earnings
(loss)...... 1.51 1.33 1.80 1.54 1.34 .73 (1.26)
Assuming Dilution --
Earnings before
cumulative
effect of
changes in
accounting
principles.. 1.47 1.29 1.76 1.52 1.32 1.14 .93
Net earnings
(loss)...... 1.47 1.29 1.76 1.52 1.32 .71 (1.24)
SIGNATURES
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Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
AlliedSignal Inc.
(Registrant)
Date: February 2, 1998 By:/s/ Peter M. Kreindler
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Peter M. Kreindler
Senior Vice President,
General Counsel and Secretary