Honeywell Raises First Quarter Earnings Per Share Guidance To $0.45 - 0.49

Revised EPS Guidance Includes One-Time Charge of $13 Million After Tax in First Quarter Due to New U.S. Healthcare Law

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Mar 30, 2010, 05:00 ET

MORRIS TOWNSHIP, N.J., March 30 /PRNewswire-FirstCall/ -- Honeywell (NYSE: HON) announced today that it has raised first quarter earnings per share guidance to $0.45 – 0.49 from $0.40 – 0.45. The better than anticipated outlook reflects both stronger orders and sales in several short cycle end markets, including Honeywell's Turbo Technologies and select Automation and Controls Solutions Products businesses, as well as continued execution of strong cost controls.

"We continue to see signs of recovery throughout our portfolio and are encouraged by improving customer order trends in the first quarter," said Honeywell Chairman and Chief Executive Officer Dave Cote. "The strong productivity actions taken last year are continuing to benefit the company, and along with improving economic conditions, we now expect our earnings to be near the high-end of our full-year guidance range of $2.20 – 2.40."

The company also expects to record a one-time, non-cash charge of approximately $13 million after tax in the first quarter of 2010, resulting from the recently enacted Patient Protection and Affordable Care Act, including modifications made in the Health Care and Education Reconciliation Act of 2010. The charge results from a change in the tax treatment of the Medicare Part D program and is lower than previously expected due to the delayed effective date of this provision from 2011 to 2013.

The company will issue its first quarter financial results and hold its investor conference call on Friday, April 23.

Honeywell (www.honeywell.com) is a Fortune 100 diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes, and industry; automotive products; turbochargers; and specialty materials. Based in Morris Township, N.J., Honeywell's shares are traded on the New York, London, and Chicago Stock Exchanges. For more news and information on Honeywell, please visit www.honeywellnow.com.

This release contains certain statements that may be deemed "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, that address activities, events or developments that we or our management intends, expects, projects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are based upon certain assumptions and assessments made by our management in light of their experience and their perception of historical trends, current economic and industry conditions, expected future developments and other factors they believe to be appropriate. The forward-looking statements included in this release are also subject to a number of material risks and uncertainties, including but not limited to economic, competitive, governmental, and technological factors affecting our operations, markets, products, services and prices. Such forward-looking statements are not guarantees of future performance, and actual results, developments and business decisions may differ from those envisaged by such forward-looking statements.

    
    
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    Robert C. Ferris                    Elena Doom  
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SOURCE Honeywell