Honeywell 3Q Earnings Up

Morris Township, NJ, October 20--Honeywell International Inc. said Wednesday that third quarter profit rose 8 percent to meet Wall Street expectations on higher sales. Quarterly earnings were up to $372 million, or 43 cents per share, from $344 million, or 40 cents per share, a year ago. During the quarter, the company initiated repositioning actions resulting in a charge of $37 million. Additionally, Honeywell recorded a $64 million charge in connection with environmental and other litigation matters, which was partially offset by $32 million in gains from legal settlements and previously divested businesses. Analysts surveyed by Thomson First Call were looking for the company to post earnings of 43 cents per share on revenue of $6.28 billion. Sales of $6.4 billion were up 11 percent from $577 billion last year. Aerospace sales increased 11 percent over the third quarter of 2003, led by 17 percent growth in commercial sales. Defense and space sales grew 3 percent in the quarter. In the company’s Specialty Materials unit, sales increased 13% over the third quarter of 2003, driven by a 19% increase in core businesses. The segment’s margin increased to 4.3%, compared with 2.2% a year ago, driven by organic growth and offset by higher raw material costs in non-core businesses. Honeywell Chemicals has also broken ground on a new manufacturing plant in Shanghai, China, that will serve as its Asian production center for refrigerants. And, the company’s Performance Products launched a synthetic, high-performance rope using Spectra fiber that is specifically designed for deep-water heavy lifting. This rope offers a significant weight-saving alternative to conventional steel wire and chain.

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