Honeywell Offers Conservative Revenue Outlook

By Angela Chen 

Honeywell International Inc. provided a muted revenue outlook for 2015 and slightly lowered its projection for this year, saying it expects only modest economic growth next year.

"While we're expecting only modest GDP growth in most regions around the world next year and will accordingly continue to be conservative in our cost and resource planning, our plan is to deliver higher organic growth, " Chief Executive Dave Cote said.

The Morristown, N.J.-based industrial conglomerate repeatedly raised its 2014 guidance, buoyed by strong growth in the past few quarters. Investors will hope that the trend will continue next year, as the company predicted revenue of $40.5 billion to $41.1 billion and earnings of $5.95 to $6.15 a share. Analysts polled by Thomson Reuters had called for $41.92 billion and earnings of $6.11.

It also cut its sales view for the year to $40.1 billion to $40.2 billion from $40.3 billion to $40.4 billion but reaffirmed its earnings guidance.

Though the global economic recovery has indeed struggled to gain momentum, industrial manufacturers in recent quarters have seen cautious growth, and Honeywell, in particular, has seen strength in almost all of its segments, with profits rising 18% in the most recently ended quarter.

The company, which said it plans to focus on geographical expansion next year, has also had its eyes on acquisitions. Mr. Cote said in October that the company is considering potential acquisition targets. In March, the company said it plans to spend $10 billion on strategic acquisitions that would contribute about $5 billion to $8 billion in sales over the next five years.

Write to Angela Chen at [e-mail]

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