DOW JONES NEWSWIRES
Honeywell International Inc.'s (HON) first-quarter net income
fell 38% on a drop in sales volume, prompting the diversified
manufacturer cut its full-year outlook.
Still, Honeywell's shares were recently up 1.9% at $33 in
premarket trading.
Big-name manufacturers and industrial conglomerates have
experienced a steep drop in orders, which led to production cuts
and downbeat expectations for this year.
Chairman and Chief Executive Dave Cote said Honeywell had
anticipated a difficult first half, but it was adjusting its
outlook because slow global economic conditions were
continuing.
The company now expects 2009 earnngs of $2.85 to $3.20 a share
on revenue of $32.3 billion to $33.2 billion, down from December's
earnings projection of $3.20 to $3.55 and February's slightly
narrowed revenue range of $33.3 billion to $35.1 billion.
Honeywell - which makes aircraft engines, automation and
transportation products - posted net income of $399 million, or 54
cents a share, down from $647 million, or 85 cents a share, a year
earlier.
Net sales decreased 15% to $7.57 billion, with product sales
down 19% and service sales edging up 0.7%.
The company said in January it expected earnings of 50 cents to
60 cents on revenue of $7.4 billion to $8 billion, both of which
were below analysts' estimates at the time.
Sales for its automation and control systems segment fell 6% as
profits fell 5% and margins edged up on productivity
improvements.
The aerospace business saw revenue fall 9% and profits decline
13% as margins fell on the sales decline. Many companies with
exposure to the aerospace industry have been suffering amid the
recession. Companies like Honeywell that have exposure to the
business-jet market have been particularly hurt as companies cut
back travel and perks.
The company's transportation segment, its smallest, swung to a
loss as revenue dropped 41% on lower volumes.
-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089;
kerry.grace@dowjones.com