First Solar Inc. (FSLR) named Rob Gillette, the head of Honeywell International Inc.'s (HON) aerospace business, to become the second chief executive in First Solar's history, replacing Michael Ahearn.

Gillette, who most recently served as president and CEO of Honeywell's aerospace division - Honeywell's most profitable segment - has served in a number of executive positions at the conglomerate. He first joined Honeywell in 1996.

Gillette takes the helm of the leading thin-film solar panel maker during a trying time for the industry. Solar panel prices have plummeted as many firms increased production anticipating continued growth in the sector. But the recession has hurt demand for solar, and some governments have cut back on the important subsidies that make solar cost-competitive with other sources of electricity.

First Solar's panels are cheaper than traditional silicon-based panels, but pricing pressure on silicon-based panels has begun to trickle down to lower-cost providers. In July the company said it is planning to enact a rebate program in Germany - one of the largest markets for solar power - in order to spur demand.

First Solar's shares were up 1.7% to $120.29 in recent trading. The stock is down more than 60% from all-time highs reached last May.

Honeywell added 22 cents to $35.99.

First Solar announced in April that it was searching for a successor to Ahearn, who has served as Chief Executive since 2000. Ahearn led the company, which was founded in 1999, as it launched production of commercial products in 2002 and four years later, launched its initial public offering.

Ahearn, who will remain First Solar's chairman, has said that in his new role he will focus on government policy and the establishment regulatory frameworks in the U.S. and abroad.

Gillette's step into the Chief Executive position is the second recent change to First Solar's executive suite. In late August, John Carrington, an executive vice president of global marketing and business development, left the company. Gillette will assume his role at First Solar on Oct. 1 and also join the board of directors.

"Rob has a track record of fostering innovation and bringing new technologies and products to market," said Ahearn, in a prepared statement. He added that Gillette has worked extensively in global markets, including Europe, Asia and South America.

First Solar declined to comment further.

At the same time, Honeywell announced Tim Mahoney, the company's chief technology officer at its aerospace business, would succeed Gillette. Mahoney, with 30 years experience in the aerospace industry, has led projects with key customers including Boeing Co. (BA). In the most recent quarter, Honeywell's aerospace division posted a 17% decline in sales and a 25% drop in profits. Overall, the company reported its second-quarter profit dropped 38%.

Mahoney joined Honeywell in 1997 after a 20-year career at United Technologies Corp.'s (UTX) Sikorsky Aircraft division.

-By John Kell, Dow Jones Newswires; 212-416-2480; john.kell@dowjones.com

(Jerry A. DiColo contributed to this report.)