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Honeywell Earnings Rise 14 Percent

July 18, 2000

MORRIS TOWNSHIP, N.J. (AP) _ Second-quarter net income at Honeywell International Inc. rose 14 percent, meeting analysts’ reduced expectations.

For the three months ended June 30, Honeywell earned $617 million, or 76 cents a share, versus $540 million, or 67 cents per share, in the year-ago period.

Excluding one-time items in both quarters, Honeywell earned 75 cents per share, meeting the reduced expectations of analysts surveyed by First Call/Thomson Financial.

Honeywell said last month it expected to earn 73 cents to 77 cents a share for the quarter because of unexpected parts shortages in its aerospace unit, higher raw material prices and higher interest rates. Analysts had been expecting the Morris Township-based manufacturer to earn 78 cents per share.

On Tuesday, shares of Honeywell fell 18.8 cents to close at $36.875 on the New York Stock Exchange, remaining well off the company’s 52-week high of $68.

The manufacturing giant, formed by the merger of Honeywell and AlliedSignal in December, said sales were $6.31 billion, up 6 percent from $5.96 billion in the year-ago period.

Honeywell said its recently acquired Pittway burglar and fire alarm business, aerospace aftermarket, turbochargers, electronic materials, fluorines, and sensing and control products led sales growth.

The growth was partially offset by lower sales in industrial automation and control, truck brakes, friction materials, and in aerospace electronics, which Honeywell attributed to a temporary shortage of parts from suppliers.

Last week, Honeywell said it plans to eliminate 6,000 of its 120,000 jobs worldwide within the next year to cut costs. It also said it would merge its polymers and specialty chemicals businesses and close a semiconductor chip packaging plant in California to streamline underperforming units.

In the six months ended June 30, Honeywell earned $1.12 billion on revenue of $12.35 billion. In the year-ago period, Honeywell earned $980 million on revenue of $11.5 billion.

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On the Net: http://www.honeywell.com

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