Honeywell Posts Higher Q3 Earnings, But Revenue Drops

reported a rise in its profit for the third quarter on Friday. The Morris Township, New Jersey-based company posted quarterly net income of $1.26 billion, or $1.60 per share, compared to $1.17 billion, or $1.47 per share, in the year-ago period. Its revenue declined 5 percent to $9.61 billion. However, analysts were expecting earnings of $1.55 per share on revenue of $9.9 billion. The average estimate among 47 Estimize users was for earnings of $1.56 per share and revenue of $9.85 billion. Sales for Aerospace segment fell 2 percent year-over-year to $3.8 billion, while Automation and Control Solutions segment sales declined 3 percent to $3.6 billion in the latest quarter. Sales for Performance Materials and Technologies segment dipped 13 percent to $2.2 billion. Its expenses shrank around 7 percent to $6.65 billion in the quarter. Operating margin increased to 18.3 percent from 16.2 percent. "Honeywell delivered another strong quarter of earnings growth and exceptional margin expansion," said Honeywell Chairman and CEO Dave Cote. "Looking ahead to 2016, we're planning for a continuation of the slow growth macro environment, but we expect to deliver continued margin expansion and earnings outperformance driven by our balanced portfolio, relentless seed planting in new products and technologies, High Growth Region penetration, over $300 million of funded restructuring, and the deployment of our key process initiatives." Honeywell projects full-year earnings of $6.10 per share, on revenue of $38.7 billion. Honeywell shares rose 0.16 percent to close at $98.42 yesterday.