Honeywell expects no Europe GDP growth for next three years – CEO

19 April 2013 17:16  [Source: ICIS news]

HOUSTON (ICIS)--Honeywell is basing its plans for Europe on zero GDP growth for the region in the next three years, the CEO of the diversified US technology and industrial major said on Friday.

Based on the current situation, we “plan for zero percent GDP growth over the next three years” in Europe, David Cote told analysts during Honeywell’s 2013 first-quarter results conference call.

“There’s nothing to indicate that [Europe] is going to have a ‘bang-up’ quarter or year,” Cote said in responding to analysts’ questions.

Honeywell’s transportation systems’ business, in particular, depends on the European automotive market for cars and trucks. That segment’s first-quarter sales were down 4% year on year, because of lower European light vehicle production volumes and declining aftermarket sales.

Globally, Honeywell is seeing a slow-growth macro environment, Cote said.

Nevertheless, Honeywell raised its lower-end 2013 earnings-per-share guidance to $4.80-$4.95, from $4.75-$4.95, as the company continues to improve its productivity and competitiveness while investing in new projects and products, Cote said.  

The majority of Honeywell's businesses – in particular the UOP petrochemical technology unit - are strong, he added.

Earlier on Friday, Honeywell’s performance and technologies segment reported a 17% year-on-year increase in first-quarter profit, to $374m (€288m), mainly because of higher petrochemical catalyst shipments and equipment sales by its UOP petrochemicals business

Honeywell has four main business segments: performance and technologies, which includes UOP; aerospace; automation and control; and transportation systems.

Honeywell’s share price was up 3.3% to $73.83/share at 11:36 New York time.

($1 = €0.77)


By: Stefan Baumgarten
+1 713 525 2653



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