Honeywell International Inc. raised the bottom end of its
full-year earnings outlook on Friday, but cut its revenue outlook
as it maintains its cautious outlook on the global economy.
For the year, Honeywell now expects to post per-share earnings
of $6.00 a share to $6.15 a share, compared with its previous
guidance of $5.95 a share to $6.15 a share. The company lowered its
revenue forecast to $39 billion to $39.6 billion from its previous
guidance of $40.5 billion to $41.1 billion.
Chief Executive Dave Cote said the company saw momentum in the
latest quarter, but reiterated that the company will continue to
plan conservatively in light of the global economy.
Honeywell's businesses include aviation components, chemicals,
and automation and control systems.
Meanwhile, Honeywell's pace of mergers and acquisitions has
slowed considerably over the past year, and company executives say
they have been searching for deals amid an overheated market. The
company has a target of $10 billion in M&A activity through
2018.
For the quarter ended March 31, the company posted a profit of
$1.12 billion, or $1.41 a share, up from $1.02 billion, or $1.28 a
share year earlier.
The company had forecast earnings of $1.36 to $1.41 a share.
Revenue fell 4.8% to $9.2 billion, missing the $9.48 billion
analysts polled by Thomson Reuters had expected.
The company has sought to improve margins by realigning its
business to focus on its aerospace, automation and control, and its
high-tech materials operations.
In the latest quarter, segment margin improved to 18.7% from
16.5% a year ago.
The automation and control-systems business, which supplies the
commercial-construction industry, posted a sales decline of 3% to
$3.26 billion. Aerospace sales fell 6.3% to $3.61 billion.
Performance materials and technologies sales fell 5% to $2.34
billion.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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