Honeywell Gives Muted '15 Revenue Forecast

Features Reuters

Honeywell International Inc, a maker of aircraft parts and electronic equipment, forecast lower-than-expected sales for the next year, citing slow global economic growth.

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The company gets more than half of its total revenue from outside the United States.

Honeywell said it expects sales of $40.5 billion-$41.1 billion and a profit of $5.95-$6.15 per share for 2015. The company reaffirmed its 2014 profit forecast.

Analysts on average were expecting a profit of $6.11 per share on revenue of $41.92 billion for 2015, according to Thomson Reuters I/B/E/S.

The Morristown, New Jersey-based manufacturer said it expects a 1 percent fall in U.S. defense spending next year. Defense contracts contributed about 12 percent to total sales in 2013.

Sales at its biggest business, aerospace, are expected to rise 2-3 percent organically, the company said.

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The company also cut its fourth-quarter revenue forecast to $10.1 billion-$10.2 billion from $10.3 billion-$10.4 billion, due to its decision to fund incentive programs in its aerospace business in the quarter.

Honeywell's shares rose marginally in premarket trading on Monday. The stock had risen about 5 percent this year up to Friday's close of $95.88. (Reporting by Rohit T. K. in Bengaluru; Editing by Don Sebastian and Siddharth Cavale)