Two giant technology companies reported earnings Thursday that were affected by the airline industry's woes, though one appeared to cope better than the other.

United Technologies

said earnings rose 7% to $502 million, or $1 a share. That's 3 cents better than analysts had predicted. The company said strong sales of military systems helped offset aviation weakness. Revenue rose 5% to $6.7 billion.

TheStreet Recommends

The company predicted it will earn $4.55 to $4.80 a share in 2003.


(HON) - Get Report

, on the other hand, saw earnings fall to $254 million, or 30 cents a share, from $376 million, or 46 cents a share, a year earlier. First-quarter revenue rose 4% to $5.4 billion.

Honeywell saw revenue fall 1% in its aerospace segment, rise 7% in its automation and controls segment, rise 3% in specialty materials, and rise 16% in transportation and power systems.