user warning: Duplicate entry '985101' for key 1
query: INSERT INTO accesslog (title, path, url, hostname, uid, sid, timer, timestamp) values('Science & Medicine', 'taxonomy/term/23', 'http://themoneytimes.com/channels/technology/science_medicine?page=8', '207.241.228.148', 0, '9efa52b375c4e67dc259374ecaa1bb16', 4133, 1266015446) in /home/themoney/public_html/modules/statistics/statistics.module on line 64.
For the quarter, the company earned $399 million, or $0.54 a shares,
down 38% on the net income line from last year's $647 million, or $0.85
a share. Sales fell by 15% to $7.6 billion from $8.90 billion in the
same period a year ago.
Unfortunately, the company's results were hit hard by a combination
of soft sales in both the automotive and aircraft sectors. On the
Aerospace side, sales were down 9% and its earnings slid by 13%.
Nevertheless, there were positives for the unit: Along with Australia's
Quantas Airlines, Honeywell has received approval to test a new
satellite-based landing system. In addition, the company inked a $70
million contract with the U.S. Air Force involving new technologies for
gas turbine engines.
However, the strength of the company in the quarter was probably
thanks to its Automation and Control Solutions unit, which, while
experiencing a 6% sales decline (mostly due to foreign exchanged
fluctuations), was one of 16 companies to garner a U.S. Army Corps of
Engineers energy efficiency contract. The project could yield as much
as $900 million in revenue during the next decade.
On the other side of the coin, the Transportation Systems group saw
its sales plummet by 41%, obviously based largely on sluggishness in
the automotive market. Nevertheless, Foolish car buffs will be
interested to know that Honeywell introduced technology for Jaguar that
will reduce both fuel consumption and CO2 emissions while boosting V6
engine performance to that of current V8 engine standards.
And finally, Honeywell's Specialty Materials group saw its sales
slide by 25% from last year's March quarter. The primary culprit was
lower volumes at the UOP unit, which supplies technology to a variety
of industries, including the energy and petrochemical sectors.
Like a variety of industrial companies, including such industrial behemoths as DuPont (NYSE: DD) and Caterpillar
(NYSE: CAT), Honeywell lowered its earnings expectations for the
remainder of the year. The new range is $2.85 to $3.20 a share, down
from the prior $3.20 to $3.55 spread.
As with so many industrial companies, Honeywell's world will
improve, although it's impossible to even come close to predicting the
precise timing. Nevertheless, in Honeywell's case, with its forward P/E
near 10%, its 34% return on equity, and its nearly 4% dividend, I would
venture that the company merits careful monitoring by Foolish investors.
For related Foolishness:
Is Dow Chemical Ready for Another Deal?4-Star Stocks Poised to Pop: CaterpillarFoolish Forecast: Build Wealth With 3M and Duct Tape
© 2009 UCLICK, L.L.C.
Post new comment