posted a solid third-quarter profit and boosted full-year bottom-line guidance, though its revenue came in a shade lighter than expected.
The Morris Township, N.J., conglomerate earned $433 million, or 51 cents a share, from continuing operations for the quarter ended Sept. 30, up from the year-ago $372 million, or 43 cents a share. Revenue rose 8% from a year ago to $6.9 billion. Analysts surveyed by Thomson First Call had forecast a 53-cent profit on sales of $7.03 billion.
"This was another strong quarter for Honeywell, highlighted by 5% organic growth and a full point of margin expansion," said CEO Dave Cote. "We continued to make significant progress in positioning the business for growth. We announced our intent to acquire the remaining 50% interest in our UOP joint venture, a leading technology provider to the petroleum refining, petrochemical and gas processing industries. In addition, we are divesting our non-core U.S. nylon carpet fiber operations. Both transactions are expected to close in the fourth quarter and will substantially complete the portfolio transformation of our Specialty Materials business. We also reached a definitive agreement to sell Indalex Aluminum Solutions, one of the two non-core Novar businesses, at terms that are in line with prior expectations."
The company also guided to full-year earnings of $2.11 to $2.13 a share, against the $2.11 Thomson consensus, on sales of $27.6 billion, against the $27.82 billion Thomson estimate. The company said free cash flow is expected to be $1.7 billion to $1.8 billion, with cash flow from operations of $2.5 billion to $2.6 billion.
Honeywell was set to open Wednesday at $35.93.