Published October 19, 2012
Honeywell (HON) reported better-than-expected third-quarter earnings on Friday as improvements in its high-growth aerospace division helped offset economic headwinds in Europe and softer transportation sales.
The company also lowered its fiscal 2012 sales forecast and tightened its full-year earnings guidance.
Honeywell now anticipates sales up 3% year-over-year in the range of $37.5 billion to $37.7 billion. It had earlier expected to make $37.8 billion to $38.4 billion. Analysts in a Thomson Reuters poll are calling for stronger sales of $38.11 billion.
The company sees fiscal 2012 earnings between $4.45 and $4.50 a share, compared with its earlier prediction of $4.40 to $4.55. The consensus is calling for $4.50.
The Morristown, N.J.-based maker of aircraft electronics and building control systems posted quarterly net income of $950 million, or $1.20 a share, compared with a year-earlier profit of $862 million, or $1.10, topping average analyst estimates of $1.14.
Revenue for the three-month period was virtually flat year-over-year at $9.3 billion but missed the Street’s view of $9.51 billion. Organic sales climbed a modest 2%.
“Our balanced mix of long- and short-cycle businesses, combined with growth in new products and continued expansion in high growth regions, offset European weakness, lower demand for products in some of our short-cycle businesses in China and the U.S., and foreign exchange headwinds in the quarter,” Honeywell CEO Dave Cote said in a statement.
Honeywell, which bought a 70% stake in Thomas Russell earlier this month for $525 million, said it is planning for a challenging macro environment in 2013 but expects to deliver solid growth with the help of new products, geographic expansion and traction on new initiatives.