Honeywell Says SEC Has Opened Probe into Its Asbestos-Claims Accounting

By Kimberly Chin 

Breaking News....

Honeywell: SEC Has Opened Investigation Into Accounting

Honeywell Says SEC Looking at Asbestos Related Claims

Honeywell Says Will Cooperate With SEC Probe

Honeywell Says SEC Enforcement Division Opened Probe in Sept.

Honeywell Says It Revised Asbestos Liabilities as of Dec. 2017

Honeywell Says Liabilities Are $1.1B More than Its Prior Estimate

(More to Come)

Previously...

Honeywell International Inc. lowered its profit guidance to reflect the spinoffs in its home and transportation businesses, while also reporting positive quarterly results supported by higher volumes and demand for its warehouse automation and aerospace segments.

Honeywell now expects to earn between $7.95 and $8 a share, lower than its previous range of $8.05 to $8.15 a share. It expects sales to come in between $41.7 billion and $41.8 billion, compared with its previous guidance of $43.1 billion to $43.6 billion. It also expects organic sales growth to hit 6%, compared with its prior guidance of between 5% and 6%.

The company recently spun off its transportation-systems business as a separate entity called Garrett Motion Inc., and it plans to complete the spinoff of its home business, which will become Resideo Technologies Inc., on Oct. 29.

Net sales at the New Jersey-based industrials firm rose 6% to $10.76 billion from the same quarter a year ago. Product sales were up 5%, while service sales rose 10%. Honeywell reported sales increases in all of its segments: aerospace, home and building technologies, performance materials and technologies and safety and productivity solutions. Analysts polled by Refinitiv were expecting sales of $10.75 billion.

Honeywell reported profit rose 73% to $2.34 billion, or $3.11 a share, from a year ago. On an adjusted basis, the company earned $2.03 a share. Analysts expected the company to earn $1.99 a share. Honeywell said it received a tax benefit of $498 million.

Shares of Honeywell, up 2.3% for the year, rose 3.2% to $160.17 a share in premarket trading on low volume.

Write to Kimberly Chin at [e-mail]

(END) Dow Jones Newswires

October 19, 2018 13:52 ET (17:52 GMT)

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