(By Balachander) Honeywell International Inc. (NYSE: HON) reduced its full-year sales forecast after the industrial conglomerate posted weaker-than-expected quarterly sales amid a fall in demand for products in some of its short-cycle businesses in China and the U.S.
The maker of aerospace products and control systems' earnings per share (EPS) increased 9 percent to $1.20 from $1.10, topping market expectations of $1.14.
Sales were flat at $9.34 billion, and trailed consensus expectations of a rise of 2.30 percent. Organic sales grew 2 percent.
"Our balanced mix of long- and short-cycle businesses, combined with growth in new products and continued expansion in high growth regions, offset European weakness, lower demand for products in some of our short-cycle businesses in China and the U.S., and foreign exchange headwinds in the quarter," commented Honeywell CEO Dave Cote.
Segment margin improved 110 basis points to 14.7 percent for the third quarter.
Segment wise, organic sales at the company's Aerospace unit advanced 4 percent and sales at Automation and Control Solutions were unchanged. Sales at Performance Materials and Technologies segment rose 1 percent. Sales fell 10 percent at Honeywell's Transportation Systems unit.
Looking ahead for the full year, the company now expects proforma EPS in the range of $4.45 to $4.50 from prior expectations of $4.40 to $4.55. Sales are now projected to be between $37.5 billion and $37.7 billion from $37.8 billion to $38.4 billion projected earlier.
Analysts expect earnings of $4.50 per share on revenue of $38.10 billion.
The stock, which has been trading in the 52-week range of $47.85 to $62.00, ended Thursday's regular trading at $61.42.