Honeywell Sales Up, Earnings Flat
Honeywell blamed a tax charge for the repatriation of foreign earnings related to the provisions of the American Jobs Creation Act of 2004 as the reason why its second quarter earnings were down to $306 million compared to $361 million from the year before. However, revenues were up to $7 billion for the three months that ended June 30 compared to $6.4 billion in second quarter sales a year ago. Meanwhile, sales were up 21 percent for Honeywell’s Automation and Control Solutions (ACS) segment that includes the security and life safety properties. In fact, Honeywell credits security and fire products for much of the sales increase. ACS sales were $2.4 billion in 2005’s second quarter compared to $1.9 billion the year before, with a net profit of $242 million. Overall, ACS sales are up 11 percent for the first half of 2005.