The Wall Street Journal-20080126-Earnings Digest- Honeywell Sees Strong 2008 Results After Posting 18- Jump in Earnings
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Earnings Digest: Honeywell Sees Strong 2008 Results After Posting 18% Jump in Earnings
Honeywell International Inc.'s fourth-quarter profit climbed 18% as the conglomerate reiterated that it expects strong results in 2008, though it cautioned that the economy could soften.
Chief Executive Dave Cote said Honeywell hasn't seen evidence of a broad slowdown yet, but he said it is planning conservatively nonetheless. "So far, all we do is read about the possibility of [a recession], but we don't really see it," he said.
Mr. Cote said he is confident that the Morris Township, N.J., aerospace-and-technology conglomerate will perform well this year. Honeywell projected first-quarter earnings of 80 cents to 83 cents a share. The mean forecast by analysts surveyed by Thomson Financial was for 80 cents a share.
Even if the economy slows by more than anticipated, company executives said lower pension expenses this year should help make up the difference.
Oppenheimer & Co. analyst Christopher Glynn said the strength of the company's 12% revenue growth in the fourth quarter was something of a surprise, adding that it bodes well for 2008.
Product sales rose 13%, while service sales grew 10.3%. Sales in automation and control services and products increased 13%, while profits climbed 10%. The unit serves the commercial-construction market.
Honeywell's aerospace unit saw revenue rise 11%, while transportation-systems sales increased 11%. Sales in Honeywell's specialty-materials division climbed 14%.
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Andrew Edwards contributed to this article.
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