CHARLOTTE, N.C. — Honeywell International Inc. executives say cost-control measures already taken — including pay cuts, furloughs, reduced travel and curbed administrative costs — will save up to $1.3 billion in 2020. But a second round is planned and could be announced next month.
The Charlotte-based industrial technology company reported first-quarter earnings Friday. Despite the severe economic downturn that started late in the quarter, Honeywell beat analysts’ expectations.
[ ALSO READ: South Carolina tire manufacturer furloughs more than 600 workers ]
But the first quarter saw just the start of the impact that the COVID-19 pandemic is having on the global economy. Honeywell expects sales to drop 15% in the second quarter from a year ago. Beyond that, it is difficult to forecast, says CEO Darius Adamczyk.
“We expect Q2 to be the most depressed from a GDP perspective, as sort of our underlying assumptions here, and I emphasize the word assumptions,” he said. “We expect some level of improvement in Q3 and further in Q4.”
Read more here about what the company sees on the horizon.
This browser does not support the video element.