Honeywell Cuts Profit View, Cites Economic Slump

Diversified U.S. manufacturer Honeywell International reported a 38 percent drop in profit and cut its full-year earnings forecast to more closely match analysts' expectations, citing the weak economy.

CNBC.com

The world's largest maker of cockpit electronics said on Friday it expects to earn $2.85 to $3.20 per share for 2009, well below its December forecast of $3.20 to $3.55 per share.

For the year, Wall Street looks for profit of $3.09 per share, according to Reuters Estimates.

Its shares rose in pre-market trading Honeywell's new forecast would represent a profit drop of 15 percent to 24 percent from the $3.76 per share in profit it reported last year.

"While we anticipated a difficult first half of 2009, slow global economic conditions continue and we are adjusting our outlook accordingly," said Chief Executive Dave Cote, in a statement.

Honeywell joins a growing list of U.S. industrials that have lowered their 2009 profit forecasts. Just this week, Caterpillar , Danaher and Eaton warned they would earn less this year than they previously expected.

The company posted earnings of $397 million, or 54 cents per diluted share. That compares with profit of $643 million, or 85 cents per diluted share, a year earlier.

Sales came to $7.57 billion, down 15 percent from $8.9 billion a year earlier.

The Morris Township, New Jersey-based company has seen demand fall off for its components of light jets and systems used to control large buildings in the face of slumping global flying hours and soft construction markets.

As of Thursday's close, Honeywell shares are down about 47 percent over the past 12 months, a slightly more modest slide than the 50 percent fall of the Standard & Poor's capital-goods industry index.

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