MORRIS TOWNSHIP, N.J. (AP) — Honeywell International Inc. said Friday its third-quarter profit fell 15 percent as sales dropped in all its divisions with key markets in aviation and industrial products continuing to struggle.
More than half of the Morris Township, N.J., company’s sales are overseas. As a result of its exposure, Honeywell has been hit hard by some of the economy’s weakest sectors such as the aerospace, automotive and construction markets, which have been in a prolonged slump.
The company earned $608 million, or 80 cents per share, in the quarter ended Sept. 30, down from $719 million, or 97 cents per share, a year ago.
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Revenue fell 17 percent to $7.7 billion from $9.28 billion a year ago.
Analysts surveyed by Thomson Reuters expected lower earnings of 72 cents per share on higher revenue of $7.88 billion.
Honeywell backed its previous 2009 guidance of earnings of $2.85 per share on revenue of $31 billion. Analysts are looking for earnings of $2.78 a share on revenue of $31.46 billion.
Its shares were up 53 cents at $39.06 in premarket trading.
In the company’s aerospace business, sales fell 16 percent in the quarter compared with a year ago due to lower volume in commercial aerospace. It was partly offset by higher military equipment sales, aircraft modifications, and upgrades, Honeywell said.
Honeywell’s automation and control solutions business, which includes climate and fire control systems for buildings, sales were down 14 percent due to slower economic growth and the unfavorable impact of foreign exchange.
In addition, sales at the conglomerate’s transportation systems business, which makes products such as turbo chargers for car engines, fell 24 percent. Honeywell blamed the results on reduced sales to global automotive equipment customers.
Honeywell’s specialty chemicals business said sales dropped 23 percent due to lower volumes and raw material price declines which were partly offset by higher petrochemical sales and environmental initiatives.
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