×

Honeywell Profit in Line; Sees Tough Economy

Diversified technology and manufacturing group Honeywell reported a quarterly profit in line with consensus expectations Monday, saying it was anticipating continued tough economic conditions.

Honeywell earned 60 cents a share in the second quarter. Sales were $7.6 billion.

Quarterly aerospace sales were down 17 percent, and the company said in a statement that economic conditions remain challenging.

Honeywell's guidance for full-year earnings per share was $2.85, at the low end of its previously stated earnings range, but still a bit higher than $2.83 expected by analysts surveyed by Reuters.

"I suspect that we are seeing probably the worst quarter that we are going to see," Howard Rubel, an aerospace and transportation analyst at Jefferies & Co, told CNBC's "Squawk Box." (See his full interview here)

Honeywell
CNBC.com
Honeywell

The world's largest maker of cockpit electronics said demand for business jet components and automotive turbochargers fell sharply, as a severe global recession took a heavy toll on corporate spending and demand for diesel cars in Europe.

Even its aviation maintenance business — sales of spare parts, which tend to fall off less sharply in downturns — was hard hit as airlines pulled parts off idled aircraft rather than buy new spare parts, executives said.

Honeywell cut its 2009 profit forecast to the low end of its most recent view, bringing the outlook more in line with Wall Street's expectations, saying it expects no economic turnaround this year.

It said it would continue to look for ways to cut costs.

"While the top line environment continues to be very challenging especially in business jets, and turbos, we're able to deliver these results because of the strong cost actions and controls that we have in place," said Chief Executive Dave Cote, on a conference call with analysts and investors.

Honeywell shares rose slightly on the day.

  • Click here for real time quotes on Honeywell

Reuters contributed to this report