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Honeywell's revenue falls on unit sale

LONDON, April 18, 2015

Honeywell International, a major manufacturer of aircraft electronics and climate control systems, has reported a five per cent fall in quarterly revenue, hurt by the sale of its friction materials business and a strong dollar.

The firm also cut its full-year revenue forecast to $39 billion to $39.6 billion from $40.5 billion to $41.1 billion, below the average analyst estimate of $40.52 billion, according to Thomson Reuters I/B/E/S.

Honeywell gets more than half its revenue from international operations and exports. The dollar rose nine  per cent against a basket of currencies in the first three months of the year.

The company sold its friction materials business, which makes car parts such as drum brake linings, hydraulic components and brake fluid, to Federal Mogul for about $155 million last year.

Honeywell's transportation unit, which included the friction materials business, accounted for about 10 per cent of total revenue in 2013. Sales in the company's aerospace business - its largest - fell 6 per cent to $3.61 billion in the first quarter, while sales at its automation and controls business fell 3 per cent.

Excluding the impact of the dollar and the sale of the friction materials business, sales in the aerospace business rose 1 per cent.

Revenue for the first quarter fell to $9.21 billion, missing the average analyst estimate of $9.48 billion.

Net income attributable to Honeywell rose to $1.12 billion, or $1.41 per share, in the first quarter ended March 31, from $1.02 billion, or $1.28 per share, a year earlier.

Total expenses fell 7.5 per cent, while margins improved to 18.7 per cent from 16.5 per cent due to new product launches and cost cuts.

Honeywell also raised the lower end of its full-year profit forecast to $6.00-$6.15 per share from $5.95-$6.15.-Reuters




Tags: Revenue | Honeywell |

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