Honeywell tightening spending as economy slows: CFO
Honeywell International Inc is tightening its spending plans and looking for opportunities to hold off on discretionary investment in the face of a slowing global economy, the diversified U.S. manufacturer's chief financial officer said on Tuesday.
By Agencies |
BOSTON: Honeywell International Inc is tightening its spending plans and looking for opportunities to hold off on discretionary investment in the face of a slowing global economy, the diversified U.S. manufacturer's chief financial officer said on Tuesday.
"It's important to us, because there's so much that we're seeing in terms of headlines and so much evidence of continuing softening in the global economy," Dave Anderson said in a meeting with investors in New York that was monitored over the Internet. He said executives at the world's largest maker of cockpit electronics, which also produces building-control systems and automotive turbochargers, were doing unit-by-unit reviews of where spending could be tightened -- and setting targets of business conditions that would justify additional spending.
"We're relentless in terms of our review and management of that cost structure and obviously prepared to also modify in terms of capital spending in 2008," Anderson said. The Morris Township, New Jersey-based company reiterated its 2008 financial forecast, which calls for earnings of $3.65 to $3.80 per share, on revenue growth of 4 percent to 6 percent. Analysts, on average, look for profit of $3.76 per share, according to Reuters Estimates. One upside of the economic downturn is that it could create more chances for acquisitions, he said.
"We'll see even more opportunities should the economy to continue to soften, which we anticipate it will," Anderson said.
"It's important to us, because there's so much that we're seeing in terms of headlines and so much evidence of continuing softening in the global economy," Dave Anderson said in a meeting with investors in New York that was monitored over the Internet. He said executives at the world's largest maker of cockpit electronics, which also produces building-control systems and automotive turbochargers, were doing unit-by-unit reviews of where spending could be tightened -- and setting targets of business conditions that would justify additional spending.
"We're relentless in terms of our review and management of that cost structure and obviously prepared to also modify in terms of capital spending in 2008," Anderson said. The Morris Township, New Jersey-based company reiterated its 2008 financial forecast, which calls for earnings of $3.65 to $3.80 per share, on revenue growth of 4 percent to 6 percent. Analysts, on average, look for profit of $3.76 per share, according to Reuters Estimates. One upside of the economic downturn is that it could create more chances for acquisitions, he said.
"We'll see even more opportunities should the economy to continue to soften, which we anticipate it will," Anderson said.
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