Honeywell Earnings Meet Lowered Views
NEW YORK (Reuters) - Diversified manufacturer Honeywell International
Inc. (NYSE:HON - news) on Tuesday said its second-quarter earnings rose
13 percent, meeting a recently lowered forecast, in a quarter plagued by high
oil-derived raw material prices and supplier problems.
The Morris Township, N.J.-based maker of products ranging from
turbochargers and aircraft electronics to carpet fibers and home security
systems earned $605 million, or 75 cents a diluted share, compared with
$535 million, or 66 cents a share in the quarter a year earlier, excluding
one-time items in both periods.
The company recorded $130 million in charges in the recent quarter for the
sale of a product line, phasing out a facility, and severance. Second-quarter
sales rose 6 percent to $6.3 billion.
Analysts had on average forecast the company to earn 75 cents a share,
according to First Call/Thomson Financial. Honeywell on June 19 said it
would not meet its previous expectations for second-quarter earnings,
precipitating a sharp drop in its share price, and on July 10 said it would earn
75 cents a share.
Honeywell International Inc., formed in December through the $16 billion
merger of the old Honeywell and AlliedSignal, was hit with a spate of
problems as it continued to manage the merger integration. Management
conceded that it had raised the bar for earnings too high and on July 10 it
lowered its earnings growth outlook going forward, indicating that it would
shed jobs and some assets.
The shares closed at 37-1/16 Monday on the New York Stock Exchange.
They traded at 63-7/8 in December, and were at about 40 before the June
19 earnings warning, when they announced the shortfall but held off on details
until the July announcement. |
