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Honeywell’s quarterly profit jumps 26 percent

Honeywell International Inc. on Wednesday reported that its third quarter profit rose 26.3 percent from a year earlier, led by its aerospace and automation and control solutions divisions.
/ Source: The Associated Press

Honeywell International Inc. on Wednesday reported that its third quarter profit rose 26.3 percent from a year earlier, led by its aerospace and automation and control solutions divisions.

The high-tech manufacturer whose products range from jet engines to Prestone antifreeze posted net income of $470 million, or 55 cents a share, in the three months ended Sept. 30, up from the $372 million, or 43 cents a share, in the same 2004 period.

Sales rose 7.8 percent to $6.9 billion, up from $6.4 billion.

The latest results include charges of $76 million, or 9 cents a share for non-operating charges such as litigation and an adjustment of $13 million, or 2 cents a share, for businesses sold in earlier periods.

Earnings from continuing operations were 51 cents a share, Honeywell said.

Analysts polled by Thomson Financial were looking for profit of 53 cents per share on sales of $7.03 billion.

The company, based in Morris Township, said it aerospace sales rose 6.8 percent in the third quarter, to $2.6 billion, as the division got certification from the European Aviation Safety Agency for its runway awareness and advisory system on business aircraft. The defense and space unit also delivered its next generation of weather radar systems to the U.S. Air Force for use in the C-17 Globemaster III.

Sales for the automation and control solutions segment were up 22.6 percent, to $2.45 billion, with the bulk due to acquisitions.

For the first nine months of the year, Honeywell had a profit of $1.14 billion, or $1.33 a share, up 10.4 percent from the $1.03 billion, or $1.19 a share, in the first nine months of 2004.

Sales for the first three quarters were $20.4 billion, up 7.5 percent from the $18.96 billion in the same period a year ago.

For the year, Honeywell now expects profit of $1.93 to $1.95 per share, or $2.11 to $2.13 after adjusting for charges related to the repatriation of foreign earnings. Previously, Honeywell had predicted a much wider range for adjusted earnings of $2.05 to $2.15 per share.

Sales will come in around $27.6 billion, Honeywell said. That’s below its earlier outlook for sales of $27.8 billion to $28 billion.

Analysts foresee year-end adjusted earnings of $2.11 per share on sales of $27.82 billion.