Honeywell 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.
