Honeywell profit beats as costs fall

David Cote, chairman and chief executive of Honeywell, speaks during The Economist's Buttonwood Gathering in New York October 24, 2012.

Reuters/Carlo Allegri

Honeywell International Inc (HON.N), a U.S. manufacturer of aerospace parts and climate control systems, reported a better-than-expected quarterly profit as costs fell.The company, whose customers include Airbus Group SE (AIR.PA), Boeing Co (BA.N) and Bombardier Inc (BBDb.TO), has been cutting jobs and selling or merging businesses to reduce costs and boost efficiency.
Honeywell's expenses fell about 7 percent to $6.65 billion in the third quarter, while operating margins rose to 18.3 percent from 16.2 percent, a year earlier.
However, the company's revenue fell 5 percent, missing analysts' expectations, hurt by a strong dollar.
Honeywell also cut its 2015 revenue forecast to
$38.7 billion from $39 billion-$39.6 billion.
Sales fell 2 percent in the company's aerospace business, its largest, and 3 percent in its automation and controls business.
Excluding the impact of a strong dollar, sales rose about 2 percent in the aerospace business and 3 percent in the automation and controls business.
The net income attributable to Honeywell rose to $1.26 billion, or $1.60 per share, in the quarter ended Sept. 30 from $1.17 billion, or $1.47 per share, a year earlier.
Revenue fell to $9.61 billion.
Analysts had expected a profit of $1.55 per share and revenue of $9.85 billion, according to Thomson Reuters I/B/E/S.
(Reporting by Ankit Ajmera in Bengaluru; Editing by Kirti Pandey)