Boston, MA 10/21/2013 (wallstreetpr) – Honeywell International Inc. (NYSE:HON) has come out with its third quarter results for the quarter ending September 2013. Company has informed that revenues from all its divisions combined have increased by 3% to $9.65 billion. Though this is definitely an increase on Year on year basis, the numbers have actually missed the market’s consensus estimates of $9.92 billion. As for the net income figure, company earned almost a billion dollars ($990 million) as net income in third quarter. This was $40 million more than what it earned in third quarter of previous year.
The main culprit for not meeting analyst’s estimates has to be Defense & Space Division. The third quarter sales for this division which supplies equipments for military projects have dropped by as much as 11%. The reason for this has been attributed to US government’s decision to cut its expenditure in various state sponsored military projects. Company also said that it faced sever supply chain problems when it could not get components for quite a few of its products. As per company’s CFO, these problems have largely been fixed and in his own words, these are “not lost sales, (but) delayed revenues.” Other division performed as expected. Sales at Performance Material & Technology Unit rose by almost 10% to close in excess of 1.62 billion dollars. Automation & Control Unit and Transportation Unit also provided sales growth of 4.3 and 6.1% respectively.
Taking into account the above mentioned issues and an unexpected delay in company purchase of mobile computing device maker Intermec, company has lowered its full year revenue forecast by almost 1%. Earlier company expected to generate revenues of almost 39.3 billion dollars. But now, company management has confirmed that revenues are projected to range in between 38.8 and 39 billion dollars.
