Honeywell International Inc. (A/Negative/A-1) announced a new chief executive officer (CEO), David Cote, to succeed current CEO Lawrence Bossidy, who will remain chairman until June. Cote is leaving TRW Inc., where as chairman and CEO he was committed to improving that company's financial risk profile and bolstering competitiveness through efficiency programs. Consequently, Standard&Poor's expects Morristown, N.J.-based Honeywell to preserve credit quality under its new leadership, benefiting from substantial operating diversity, solid competitive positions, and a moderate financial profile. Market conditions for commercial aerospace (15% of 2001 revenues) and industrial operations are difficult, but significant cost-cutting actions should reduce Honeywell's cost structure by about $1.3 billion in 2002.
