Sponsored by: Investment Center

Something new in your business?  Click here to submit your business press release

Chamber Corner | Main Street News | Job Hunt | Classifieds | Calendar | Illinois Lottery 

Honeywell raises 1Q forecast, but sees $13M charge

Send a link to a friend

[March 31, 2010]  MORRIS TOWNSHIP, N.J. (AP) -- Honeywell International Inc. increased its first-quarter earnings outlook Tuesday and said it will log a $13 million non-cash charge in relation to the recent health care overhaul legislation.

InsuranceThe manufacturing conglomerate now expects a profit of 45 cents to 49 cents per share for the quarter, compared with an earlier forecast of 40 cents to 45 cents per share.

For the full year, the company now expects its profit near the top of its previous outlook range of $2.20 to $2.40 per share.

Analysts polled by Thomson Reuters expect first-quarter profit of 44 cents per share and full-year profit of $2.40 per share.

Honeywell cited a rise in orders and sales in several businesses, including its turbo technologies and some automation and controls solutions products businesses.

Honeywell also said it plans to log a one-time non-cash charge of $13 million in the current quarter, joining a growing list of companies who have said they will take accounting charges due to the recently passed health care reform bills. AT&T said last week that it would take a $1 billion charge in the first quarter. Companies including AK Steel Corp., Caterpillar Inc. and 3M Co. have also said they will take smaller charges.

Honeywell said that the health legislation, which was signed into law by President Barack Obama last week and includes a companion measure he signed Tuesday, will lower its tax deduction for retiree health care costs starting in 2013.

[to top of second column]


Companies that provide prescription drug benefits for retirees have been getting subsidies covering 28 percent of eligible costs but could deduct everything they spent on the benefits -- including the federal money -- from their taxable income.

However, beginning in 2013, the health care overhaul will allow them to only deduct the amount of their own money that they spent. Prudential said it had taken a charge to reflect the increase in taxes it expects because of the changes.

Honeywell shares climbed $1.15, or 2.6 percent, to $46.10 in aftermarket activity. They earlier added 8 cents to end regular trading at $44.95.

[Associated Press]

Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


< Recent articles

Back to top


News | Sports | Business | Rural Review | Teaching & Learning | Home and Family | Tourism | Obituaries

Community | Perspectives | Law & Courts | Leisure Time | Spiritual Life | Health & Fitness | Teen Scene
Calendar | Letters to the Editor