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Honeywell 2Q profit falls
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July 24, 2001: 11:32 a.m. ET
Diversified manufacturer sees 2Q profit slightly better than forecast
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NEW YORK (CNNfn) - Diversified manufacturer Honeywell International Inc. posted lower operating earnings Tuesday that were slightly better than Wall Street expectations, with the company giving a full-year earnings range that included current forecasts.
Honeywell (HON: up $0.39 to $36.56, Research, Estimates) – which saw its proposed purchase by General Electric Co. (GE: down $0.82 to $44.48, Research, Estimates) blocked by European regulators earlier this month – earned $450 million, or 55 cents a diluted share, from ongoing operations, excluding special charges. That's 2 cents a share better than the consensus estimate of earnings tracker First Call, but down from $605 million, or 75 cents a share, earned on the same basis a year earlier.
Including all the special charges, only a fraction of which involved to the failed deal with GE, the company reported net income of $50 million, or 6 cents a diluted share, down from $617 million, or 76 a diluted share a year earlier. The most recent charges totaled $651 million before taxes and covered repositioning, customer contract losses, asset impairments.
Revenue at the company slipped to $6.1 billion from $6.3 billion a year earlier. Lawrence Bossidy, who was named the new CEO of Honeywell in the wake of the collapse of the GE deal, said many of the company's units did not perform well, but he seemed to suggest that it would continue to try to make it as an independent company rather than looking for a new deal.
"Our strong portfolio of businesses in some cases is not delivering results consistent with its full potential," said a statement from Bossidy. "This quarter's results reflect the effects of a softening economy, pronounced weakness in some business segments, cost inefficiencies and continued high raw material costs.
"Despite the disappointing earnings this quarter, Honeywell remains a fundamentally sound company with great people, technology, products and services," Bossidy's statement continued. "We know we can successfully build on this solid foundation to continuously improve and grow."
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Honeywell said it now expects full-year earnings per share of $2.15-to-$2.30. The First Call full-year EPS forecast is $2.22. It said its revenue is expected to be between $24 billion and $24.5 billion for the year, slightly below the First Call forecast of $25.6 billion. 
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