By Chelsey Dulaney
Honeywell International Inc. said its earnings edged up in the
fourth quarter on a lower tax expense, despite a slight decline in
sales.
Results narrowly topped expectations, sending shares up 1% in
premarket trading.
Despite tepid recovery in the global economy, Honeywell has seen
moderate growth in recent quarters. Honeywell's businesses include
aviation components, chemicals, and automation and control
systems.
Last month, however, Honeywell provided a muted revenue outlook
for 2015, saying it expects only modest economic growth. The
company has sought to improve margins by realigning its business to
focus on its aerospace, automation and control, and high-tech
materials operations. Meanwhile, the industrial conglomerate has
had its eye on acquisitions.
Honeywell said last year that 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.
For the fourth quarter, the company posted a profit of $956
million, or $1.20 a share, up from $947 million, or $1.19 a share
year earlier. Excluding a pension charge, earnings were $1.43 a
share.
Revenue fell 1.6% to $10.27 billion.
Analysts polled by Thomson Reuters had expected per-share
earnings of $1.42 and revenue of $10.21 billion.
Product sales fell 1.4% to $8.19 billion, while service sales
were essentially flat at $2.08 billion.
The automation and control-systems business, which supplies the
commercial-construction industry, posted sales growth of 3% to
$3.85 billion. The aerospace business's sales fell 6% to $3.84
billion. Performance materials and technologies sales edged up to
$2.57 billion.
The tax expense dropped to $329 million from $475 million.
Honeywell also backed its outlook for the year.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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