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Honeywell 4Q profit down
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January 29, 2002: 12:54 p.m. ET
Manufacturer posts lower results, in line with forecasts, as sales slump.
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NEW YORK (CNN/Money) - Honeywell International said Tuesday that its fourth-quarter profit tumbled, matching Wall Street expectations, as the diversified manufacturer continued to struggle with weak demand amid an economic recession.
For the quarter that ended on Dec, 31, Honeywell posted earnings before one-time items of $447 million, or 55 cents a share. That was down sharply from $569 million before one-time items, or 71 cents a share, a year earlier. Analysts on average anticipated a profit of 55 cents a share, according to earnings tracker First Call.
The Morristown, N.J.-based company, whose proposed merger with General Electric Co. (GE: Research, Estimates) was quashed by European regulators last year, said its fourth-quarter revenue slid to $5.9 billion from $6.5 billion. Analysts surveyed by First Call expected $5.8 billion in revenue.
Including one-time items, net earnings in the quarter fell to $118 million, or 14 cents a share, from $447 million, or 31 cents a share, a year ago.
Honeywell's performance was dragged down by a recession in the U.S. economy and a prolonged recession in the manufacturing sector, but the company expects to recover later in 2002.
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"The near-term economic outlook still presents some difficulties in the first half of the year," CEO Lawrence Bossidy said in a statement. "We're also convince the company is ready to maximize the benefits of an anticipated economic recovery in the second half of the year."
Honeywell said it expected to earn about $2.36 a share in 2002, better than current analysts' expectations of $2.32 a share, according to First Call.
Shares of Honeywell (HON: down $0.76 to $31.29, Research, Estimates), the No. 4 aerospace manufacturer, fell about 2 percent in midday trading on the New York Stock Exchange. 
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