Updated from 12:56 p.m. EDT
reported Tuesday that its second-quarter earnings rose 13%, meeting Wall Street's lowered expectations, as higher raw material costs and supplier problems cut into the profits of the diversified manufacturer.
The Morris Township, N.J.-based company said it earned $605 million, or 75 cents a diluted share, compared with $535 million, or 66 cents a share, in the second quarter of 1999. The results in both periods excluded one-time items.
Honeywell warned on June 19 that its earnings would be less than analysts' forecasts, sending its stock price down 18%. The company said on July 10 that it would earn 75 cents a share, prompting analysts polled by
First Call/Thomson Financial
to lower their consensus estimate to the same amount.
Shares of Honeywell closed Tuesday regular trading down 7/8, or 2.3%, at 36 7/8.
For the second-quarter, Honeywell complained of higher raw materials costs for its specialty chemicals and materials businesses, higher debt service costs due to higher interest rates, supplier problems and a weak euro.
Sales rose, however, 6% to $6.3 billion from $6 billion, led by recently acquired alarm maker
, aerospace aftermarket, turbochargers and electronic materials.
The company's operating margin expanded to 15.4%, and second-quarter cash flow before dividends was $339 million.
Since its $16 billion
in December, a transformed Honeywell has worked to integrate the two companies.