MORRIS TOWNSHIP, N.J. (AP) — Honeywell International Inc. on Monday issued weaker-than-expected 2013 earnings guidance, predicting that the overall global economy will continue to grow slowly next year.
The Morris Township, N.J.-based technology and manufacturing conglomerate said it expects to post a 2013 profit of $4.75 to $4.95 per share on $39 billion to $39.5 billion in revenue.
Analysts, on average, expected earnings of $4.95 per share, with estimates ranging from $4.79 to $5.05, according to FactSet. Wall Street was forecasting revenue of $39.36 billion, on average, with estimates ranging from $38.24 billion to $40 billion.
Honeywell said it expects its sales from its existing operations to rise just 1 percent to 3 percent next year. While it's planning for slow growth conditions in the overall economy, the company said it will remain flexible and focus on boosting its efficiency and competitiveness with the goal of increasing sales and profitability.
Also on Monday, Honeywell said it reached a deal to buy Intermec Inc., which makes barcode printers and radio frequency identification products, for about $603.4 million in cash.
Honeywell said it expects the addition of Intermec, which is factored into the 2013 guidance, to lower its earnings for that year by 3 cents or 4 cents per share, but increase its profit in 2014.
The company also projected a 2012 profit of $4.47 per share on about $37.5 billion in revenue. The company previously projected 2012 earnings of between $4.45 and $4.50 per share, on revenue of between $37.5 billion and $37.7 billion.
Analysts, on average, predict a profit of $4.49 per share on $37.65 billion in revenue.
Honeywell shares slipped 20 cents to $61.77 in midday trading, still near the high end of its 52-week trading range of $51.42 to $63.89.