Weak Markets Expected To Pull Down Honeywell's 3Q

STEPHEN SINGER

Honeywell International Inc., which makes industrial products such as building materials, aircraft radar and fire safety equipment, is scheduled to report third-quarter earnings Friday before the market opens. The following is a summary of key developments and analyst opinion related to the period.

OVERVIEW: More than half of the Morristown, N.J., company's sales are overseas. As a result of its exposure, Honeywell has been hit hard by some of the economy's weakest sectors such as the aerospace, automotive and construction markets, which have been in a prolonged slump.

The company said when it released its second-quarter results in July it does not expect a recovery this year from the recession as customers such as airlines hold off on the purchase of Honeywell parts.

BY THE NUMBERS: For the third quarter, analysts polled by Thomson Reuters expect, on average, third-quarter earnings of 72 cents per share on revenue of $7.88 billion. That would be down from 97 cents per share on revenue of $9.28 billion in the third quarter of 2008.

ANALYST TAKE: Deutsche Bank analyst Nigel Coe said he expects a 15 percent decline in revenue year-over-year, bringing his estimate to the low end of $7.7 billion to $8.1 billion.