MORRIS TOWNSHIP, N.J. (
manufacturing diversity, normally a hedge against weak business in any one sector, has apparently come back to haunt it.
Reporting second-quarter results Monday, Honeywell said that it suffered steep declines in sales across all of its business segments, including shrinkage of 17% at its core aerospace unit, which makes radars and equipment for aircraft and air-traffic controllers.
Honeywell's exposure to commercial aviation manufacturing and the automobile industry -- which the recession has all but devastated -- have hurt Honeywell the most.
Overall, the company's profit dropped 38% from the year-ago period, to $450 million, or 60 cents a share, equaling analysts' expectations. A year ago, Honeywell earned $723 million, or 96 cents a share.
Total revenue fell 22% to $7.6 billion.
In a statement released before Monday's opening bell, Honeywell chief Dave Cote said economic conditions "remain challenging and we are not planning for any recovery in 2009."
Honeywell refined its profit and revenue guidance lower, saying it expects to post full-year 2009 sales of $31.5 billion and earnings of $2.85 a share, the low end of a range previously released by the company. A consensus of analysts' estimates has Honeywell recording a profit of $2.83 a share for the year, on revenue of $32.6 billion.
Honeywell shares were trading Monday morning at $33.87, down 12 cents, on volume of 1.6 million shares. The stock's average daily turnover is 6.8 million.
Other big aerospace companies have outperformed Honeywell, especially those with large defense contracting businesses.
, for instance, posted a revenue increase of 1.8% (though earnings retracted by 17%).
, meanwhile, recorded sales and earnings growth of 4% and 15%, respectively.
The more diversified conglomerates have, like Honeywell, felt the pain.
, for example, which reported last week, saw its profit decline by 24% and its revenue by 17%, citing many of the same broad economic woes as Honeywell.
--Reported by Scott Eden in New York City.
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