Honeywell International (NYSE:HON), a U.S. manufacturer of aerospace parts and climate control systems, reported a better-than-expected quarterly profit as costs fell.
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The company, whose customers include Airbus Group, Boeing and Bombardier, has been cutting jobs and selling or merging businesses to reduce costs and boost efficiency.
Honeywell's expenses fell about 7 percent to $6.65 billion in the third quarter, while operating margins rose to 18.3 percent from 16.2 percent, a year earlier.
However, the company's revenue fell 5 percent, missing analysts' expectations, hurt by a strong dollar.
Honeywell also cut its 2015 revenue forecast to $38.7 billion from $39 billion-$39.6 billion.
Sales fell 2 percent in the company's aerospace business, its largest, and 3 percent in its automation and controls business.
Excluding the impact of a strong dollar, sales rose about 2 percent in the aerospace business and 3 percent in the automation and controls business.
The net income attributable to Honeywell rose to $1.26 billion, or $1.60 per share, in the quarter ended Sept. 30 from $1.17 billion, or $1.47 per share, a year earlier.
Revenue fell to $9.61 billion.
Analysts had expected a profit of $1.55 per share and revenue of $9.85 billion, according to Thomson Reuters I/B/E/S.
(Reporting by Ankit Ajmera in Bengaluru; Editing by Kirti Pandey)