Honeywell first-quarter revenue falls due to strong dollar

Fri Apr 17, 2015 8:38am EDT
 
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(Reuters) - Honeywell International Inc (HON.N: Quote), a major manufacturer of aircraft electronics and climate control systems, reported a 5 percent fall in quarterly revenue on Friday, hurt by the sale of its friction materials business and a strong dollar.

The company also cut its full-year revenue forecast to $39 billion-$39.6 billion from $40.5 billion-$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 .DXY rose 9 percent against a basket of currencies in the first three months of the year.

The company sold its friction materials business, which makes auto 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 percent of total revenue in 2013.

Sales in the company's aerospace business — its largest — fell 6 percent to $3.61 billion in the first quarter, while sales at its automation and controls business fell 3 percent.

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

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.   Continued...

 
A view of the corporate sign outside the Honeywell International Automation and Control Solutions manufacturing plant in Golden Valley, Minnesota, January 28, 2010. REUTERS/ Eric Miller