Honeywell Profit Falls 13.4% on Aerospace Businesses

Industries Reuters

(Reuters)

Diversified manufacturer Honeywell International posted fourth-quarter revenue that was roughly flat compared with a year earlier, while analysts were expecting an increase, hurt by weakness in its aerospace and energy businesses.

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Honeywell also reiterated its earnings and organic sales growth forecast for the current year, which it had issued in mid-December.

The company's shares were down about 1.7 percent at $116 in low volumes in premarket trading on Friday.

Net income attributable to Honeywell decreased 13.4 percent to $1.03 billion, or $1.34 per share in the quarter ended Dec. 31. Excluding items, it earned $1.74 per share.

Revenue was little changed at $9.99 billion.

Analysts had expected fourth quarter earnings of $1.74 per share on revenue to rise to $10.15 billion, according to Thomson Reuters I/B/E/S.

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Sales in Honeywell's aerospace business, its biggest, declined about 8 percent. The business makes engines for aircraft made by Bombardier Inc, Textron Inc and General Dynamics Corp among others.

Sales in Honeywell's performance materials and technologies unit, which makes catalysts and absorbants used for petroleum refining, dropped 4.7 percent.

Honeywell had, in December, forecast 2017 earnings per share of $6.85-$7.10 and said it expected organic sales growth of 1-3 percent, partly helped by the stabilizing oil and gas market.

(Reporting by Ankit Ajmera in Bengaluru; Editing by Savio D'Souza)