HoneyWell Q3 Profit Tops Estimates But Lowers 2008 Outlook

Morristown, NJ (AHN) - Honeywell International announced Friday third quarter earnings rose 16 percent, topping estimates. However, they lowered the top end of their 2008 full year earnings outlook by 5 cents.

The conglomerate posted third quarter earnings of $719 million or 97 cents a share, compared to $618 million or 81 cents a share in the same period a year ago. The result topped analyst estimates for 95 cents a share, according to FactSet Research.

Revenue rose 6 percent to $9.3 billion. The company saw strong growth in its building controls unit where revenue jumped 15 percent to $3.6 billion. Sales in the specialty materials unit were strong as well, up 9 percent to $1.3 billion.

"Our long cycle businesses as well as those lines of macro trends like oil and gas, energy efficiency, defense and space, and life safety continued to perform well," said CEO Dave Cote on a conference call.

"This strength more than offsets continued softness in our residential and industrial sensing end markets as well as global flight hours where growth is decelerating as anticipated," he added.

Honeywell benefited from a $600 million gain in the third quarter from the completion of the consumable solutions division sale.

Looking forward, the company expects fourth quarter earnings to be 97 cents to $1.01 a share, analysts are looking, on average, for $1.04 a share.

Honeywell expects full year 2008 earnings to be $3.76 to $3.80 a share on revenue of $37.2 billion. Prior guidance was for earnings of $3.75 to $3.85 share.