Honeywell Profits Up Sharply
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TRENTON, N.J. (AP) _ High-tech manufacturer Honeywell International reported sharply higher first quarter earnings, despite declining sales in all four of its divisions, primarily because of a large writeoff for severance and restructuring costs in the year-earlier period.
Morris Township-based Honeywell posted net income of $376 million, or 46 cents per share, for the quarter ended March 31. In the year-earlier quarter, Honeywell reported net income of $41 million, or 5 cents per share, dragged down by charges totaling $595 million, mainly for severance pay and other restructuring costs.
Excluding a profit on the sale of a business and other factors, core earnings fell 12 percent to $366 million, or 45 cents per share, as slumping sales for aerospace and other products cut revenues sharply. That matched the forecast of analysts surveyed by Thomson Financial/First Call.
Those adjustments include an after-tax gain of $79 million from the sale of the company’s Bendix Commercial Vehicle Systems business and an after-tax charge of $69 million, partly for costs of severance pay and facility shutdowns.
First-quarter sales dropped 12.5 percent, to $5.2 million from $5.94 million the year earlier.
Sales for the company’s two biggest divisions, which make aerospace equipment and automation and control systems, slumped 13 percent and 8 percent, respectively. However, Honeywell noted that sales were up in some segments, including military avionics, residential and commercial security and automotive parts.
Company officials said they expect net income to hit $1.9 billion for the year, because of continued cost-cutting, further productivity improvements and anticipation that the economy _ particularly the airline industry _ will recover in the second half of this year.
Shares of Honeywell fell 90 cents to $39.56 in morning trading on the New York Stock Exchange.
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