Honeywell International Inc. said Friday its first-quarter earnings dropped 38 percent as the broader downturn in commercial aviation and autos weighed heavily on the manufacturer's sales. It also cut its earnings forecast for the year, AP reported. Honeywell has warned that 2009 would be difficult, and the latest quarterly results show that it's been hurt by its exposure to some of the hardest hit areas of the economy. The Morristown, New Jersey-based diversified manufacturer reported first-quarter net income of $397 million, or 54 cents per share, down from $643 million, or 85 cents per share, in the same quarter last year. Honeywell says sales fell 14.6 percent to $7.57 billion. Analysts were expecting 54 cents per share in quarterly earnings on revenue of $7.53 billion. The company's aviation unit, which makes radars and other gear for commercial planes, saw sales slip 9 percent to $2.76 billion. Commercial aerospace has been battered by a drop in global flight hours during the economic slowdown. Honeywell saw the fastest sales drop in its transportation division, where it makes products like turbo chargers for car engines. Sales dropped 41 percent to $756 million, a likely sign of the difficulties faced by suppliers of ailing automakers. The company also lowered its outlook, saying it expects the global economic slowdown to continue. It now forecasts 2009 earnings of between $2.85 to $3.20 per share, down 35 cents. Analysts had expected $3.03 per share.
