Somewhat bruised by a declining top line, Honeywell still managed a better-than-expected third quarter, the company announced today, with the Automation and Control Systems group showing signs of improvement and the defense segment of the aerospace division actually in growth mode.
For the quarter ended Sept. 30, Honeywell reported net income of $608 million on sales of $7.7 billion, declines of 15% and 17%, respectively, against the same quarter last year, when the company booked net income of $719 million on sales of $9.2 billion. Earnings per share totaled $0.80 compared with $0.97 per share a year earlier. Third-quarter 2009 EPS included a boost of approximately $0.04, due to lower-than-expected tax expense, which the company expects to be offset on a full-year basis by a higher income tax rate in the fourth quarter of 2009.
Honeywell executives focused on the company’s free cash flow — $1billion compared with $556 million in the third quarter of 2008.
“We’re particularly pleased with our free cash flow performance year-to-date, which reflects our strong operating disciplines and working capital controls,” said Honeywell Chairman and CEO Dave Cote in a statement.