Honeywell 3Q earnings fall due to pension charge

AP News
|
Posted: Oct 22, 2010 8:53 AM
Honeywell 3Q earnings fall due to pension charge

A noncash pension charge pushed Honeywell International Inc.'s third-quarter earnings down 18 percent, but the company reported a strong revenue increase on sales of automotive turbochargers, general industrial products and commercial aviation equipment.

The technology and manufacturing company beat Wall Street estimates and it boosted its earnings forecast for the year.

Honeywell on Friday reported net income of $499 million, or 64 cents per share, compared with $608 million, or 80 cents per share, in the same quarter last year. Revenue for the quarter grew by 9 percent to $8.39 billion.

Without the pension charge, Honeywell says it would have made 82 cents per share.

Analysts polled by Thomson Reuters expected earnings of 62 cents per share on revenue of $8.2 billion.

The Morristown, N.J., company said it is predicting 2010 net income of $2.52 per share, above previous guidance of $2.40 to $2.50 per share. Revenue for the year is expected to be $33 billion, slightly above the previous range of $32.4 billion to $32.9 billion.

"We're in the early stages of planning for 2011 and we believe we are well positioned for growth given our focus on new products and services, geographic expansion, and the improvement we're seeing in many of our major end markets," Chairman and CEO Dave Cote said in a statement. The company will give guidance for 2011 in its December outlook call, Cote said.

The company said third-quarter sales in its Aerospace unit were up 3 percent compared with the year-ago quarter, while automation and control sales were up 9 percent. Transportation systems sales rose 19 percent, while specialty materials such as resins and chemicals rose 16 percent.

Honeywell also said Friday that it plans to make a $600 million voluntary payment to its U.S. pension plan in the fourth quarter.

Shares of Honeywell rose one cent to $46.68 in premarket trading Friday.