Automation technology providers Honeywell and ABB this week reported sales and earnings that were well off the pace of 2008 results, as prospective customers kept a stranglehold on company purse strings.
For New Jersey-based Honeywell, the first quarter, ended March 31, produced sales of $7.6 billion, 15% less than the $8.9 billion reported in the year-earlier quarter. Much like its peers in various software markets, Honeywell suffered most from a drop in product sales, which clocked in at $5.8 billion in Q1, nearly 19% off last year’s numbers. The company’s services business, meanwhile, ticked slightly upward to $1.8 billion, as customers looked to optimize existing technology while shying away from new technology purchases.
In the Automation and Control Solutions division, the company’s largest, sales fell 6% to $3 billion, with acquisitions helping to stem the decline.
The revenue slump dragged down Honeywell’s earnings; net income of $399 million was just 62% of the prior year’s $647 million.