Honeywell 4Q profit rises

Honeywell 4Q profit rises

	Published : Fri, 26 Jan 2007 17:01 By : Agencies Print this Story

MOUNT LAUREL, N.J. (AFX) - Diversified high-tech manufacturer Honeywell International Inc. said Friday its fourth-quarter profit rose 14 percent, led by strong sales in its aerospace and automation businesses.

Net income for the Morris Township-based company grew to $585 million, or 72 cents per share, for the three months ended Dec. 31 from $514 million, or 61 cents per share, in the year-ago period.

Revenue also rose 14 percent to $8.28 billion from $7.28 billion, with automation and control services sales leading the way with an 18 percent increase to $3.05 billion.

The profits matched the expectations of analysts surveyed by Thomson Financial, while revenue came in ahead of forecasts for $8.1 billion.

For the year, profits were $2.08 billion, or $2.52 per share, up from $1.64 billion, or $1.92 per share, in 2005. Revenue was $31.3 billion, up 13 percent from $27.7 billion a year earlier.

While aerospace and the automation businesses led the way in the fourth quarter, the company's other main divisions -- specialty materials and transportation systems -- also saw sales growth for both the fourth quarter and the year.

The company said the growth would continue, projecting sales for 2007 to be about $33 billion, or up 5 percent and earnings to be $2.85 to $2.95 per share for the year.

Analysts were expecting 2007 earnings per share of $2.93 on revenue of $32.6 billion.

'We expect to build on our successful track record in 2007,' said Chairman and CEO Dave Cote. 'Despite our forecast for modest softening in global economic conditions, we believe that favorable macro-trends and demand for differentiated technologies, products and services provide opportunities for sustained growth at Honeywell.'

But with a company forecast suggesting earnings could come in below current Wall Street estimates, Honeywell shares fell 72 cents, or 1.6 percent, to $43.50 in morning trading on the New York Stock Exchange.

Cote also told analysts on a conference call Friday that free cash flow of $2.5 to $2.7 billion in 2007 could position the company to buy other businesses.

'If I take a look at the Honeywell portfolio, most of it can handle an acquisition,' he said.