Honeywell Issues Tepid Outlook for 2014

By EarningsFOXBusiness

Honeywell International (NYSE:HON) issued a tepid outlook for its 2014 earnings and revenue guidance that slightly missed expectations, as the diversified manufacturer expects the economic environment next year to be similar to 2013’s climate.

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Honeywell, which makes products for the aerospace, defense and construction industries, said Tuesday it expects to record a profit of $5.35 to $5.55 a share and sales of $40.3 billion to $40.7 billion. Projections by analysts recently averaged $5.55 a share and $41.1 billion.

The Morris Township, N.J.-based conglomerate sees organic sales rising 3% to 4% compared to the current year’s expected level.

Honeywell also affirmed its 2013 guidance, which calls for per-share earnings of $4.90 to $4.95 and sales of $38.8 billion to $39 billion.

Chairman and CEO Dave Cote said the 2014 outlook is reflective of the company being on track to achieve its long-term targets established in 2010.

“In fact, we’ve already achieved the low-end of our long-term margin target in 2013,” he added.

United Technologies (NYSE:UTX), the maker of elevators, aircraft engines and air-conditioning systems, also provided a cautious outlook for the new fiscal year.

Last week, the company issued profit and revenue targets that largely fell short of market expectations, citing the impact of asset sales on top-line growth.

Shares of Honeywell edged 12 cents higher to $87.49 early Tuesday morning.