By Angela Chen
Honeywell International Inc. provided a muted revenue outlook
for 2015 and slightly lowered its projection for this year, saying
it expects only modest economic growth next year.
"While we're expecting only modest GDP growth in most regions
around the world next year and will accordingly continue to be
conservative in our cost and resource planning, our plan is to
deliver higher organic growth, " Chief Executive Dave Cote
said.
The Morristown, N.J.-based industrial conglomerate repeatedly
raised its 2014 guidance, buoyed by strong growth in the past few
quarters. Investors will hope that the trend will continue next
year, as the company predicted revenue of $40.5 billion to $41.1
billion and earnings of $5.95 to $6.15 a share. Analysts polled by
Thomson Reuters had called for $41.92 billion and earnings of
$6.11.
It also cut its sales view for the year to $40.1 billion to
$40.2 billion from $40.3 billion to $40.4 billion but reaffirmed
its earnings guidance.
Though the global economic recovery has indeed struggled to gain
momentum, industrial manufacturers in recent quarters have seen
cautious growth, and Honeywell, in particular, has seen strength in
almost all of its segments, with profits rising 18% in the most
recently ended quarter.
The company, which said it plans to focus on geographical
expansion next year, has also had its eyes on acquisitions. Mr.
Cote said in October that the company is considering potential
acquisition targets. In March, the company said it plans to spend
$10 billion on strategic acquisitions that would contribute about
$5 billion to $8 billion in sales over the next five years.
Write to Angela Chen at angela.chen@wsj.com
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