Rockwell, Spinoff to Reduce Payrolls
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Rockwell Collins Inc. and its former parent, Rockwell International Corp., plan to cut jobs and may reduce profit forecasts as the economy worsens and demand for aircraft and factory parts falls.
Collins, a maker of cockpit displays and other avionics equipment, said it will cut about 2,600 jobs, or 15% of its work force, because of an airline industry slump. It said fiscal 2001 earnings should meet estimates of $1.40 to $1.45 a share because of demand for defense products.
Rockwell International, which spun off Collins in June, said profit will be less than forecast and it will eliminate 750 jobs, or 3.2% of its work force. The company, which employs about 23,500 people, cut 1,200 jobs in June. Earnings for Rockwell will be 5 cents to 7 cents a share in its fiscal fourth quarter ending Sunday, the company said. Rockwell had been expected to earn 9 cents.
Rockwell’s shares rose $1.14 to $13.67 on the NYSE. Collins fell 6 cents to $14.19, also on the NYSE.
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