GE sees $2.5bn savings from Honeywell deal

General Electric reckons that its merger with Honeywell could save as much as $2.5bn/year once completed. Jack Welch, GE’s chief executive, said that the company also expects double digit earnings growth.

General Electric reckons that its merger with Honeywell could save as much as $2.5bn/year once completed – 50 per cent higher than it had previously expected. Jack Welch, GE’s chief executive, said that the company expects double digit earnings growth, even in a moderate recession.

Welch has decided to remain on as chairman for nine months longer than his scheduled departure in April 2001, and will oversee the Honeywell integration, the biggest industrial takeover ever.

GE is on target to deliver earnings of $12.7 billion for 2000, a 19 per cent rise on the previous year. The company expects to report around $130 billion in revenues for 2000, 17 per cent higher than last year. These figures exclude the effect of the Honeywell deal.