29 January 2010 16:33 [Source: ICIS news]
TORONTO (ICIS news)--Honeywell on Friday reported a 56% increase in fourth-quarter profit in its specialty materials and chemicals business, largely due to lower material costs, cost savings and pricing initiatives.
The segment’s profits for the three months ended 31 December rose to $175m (€126m) from $112m in the 2008 fourth quarter.
However, sales were off by 5% to $1.03bn because of lower volumes and the pass-through of raw material price declines in the company’s resins and chemicals business, it said.
The sales decline was only partially offset by higher petrochemical catalyst sales, a modest market recovery and inventory restocking within the company’s electronic materials business, it said.
During the quarter, Honeywell announced a new 400,000 square-foot technology centre in Gurgaon near ?xml:namespace>
Also, Honeywell's UOP catalysts business signed an agreement with China National Petroleum Corp to collaborate on biofuel technologies and projects in
Full-year chemical and materials segment profit was $605m, down 16% from $721m in 2008, on sales of €4.1bn, down 21%.
Overall, the diversified US-based industrial technology company reported fourth-quarter net income of $711m, compared with $714m in the 2008 fourth quarter, on sales of $8.1bn, down 7% from $8.7bn in the year-earlier period.
As for the 2010 outlook, chief executive Dave Cote said that the company was encouraged by improving order trends and stabilisation in many of its end markets.
Apart from specialty materials and chemicals, Honeywell is focussed on aerospace, automation and control and transportation systems.
($1 = €0.72)
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