Honeywell International Inc. (HON) expects its first-quarter 2011 sales and earnings per share to be at the high end of its earlier guidance range, benefiting from strength in the global economic recovery. Revenue for the quarter is expected to be approximately $8.7 billion, representing a year-over-year increase of about 12%. Earnings per share are expected to be approximately $0.80, representing an increase of about 23% year over year.

For full-year 2011, the company reiterated its earnings guidance of $3.60-$3.80 per share, before mark-to-market pension adjustment. Sales guidance is expected to continue to be in the range of $35.0-36.0 billion, excluding the impact of the anticipated Discontinued Operations accounting treatment of CPG. Free cash flow, before the U.S.pension contributions is expected to be in the range of $3.5 billion-3.7 billion. Including pension contribution of $1 billion, cash flow from operations are expected in the range of $3.3 billion-3.5 billion.

The company is confident of achieving its outlook for 2011 with the continued recovery being seen in the worldwide economic environment. Honeywell remains focused on making value driving investments, strategic acquisitions in new industries as well as return cash to shareholders through better dividend payment and share repurchases.

Honeywell has a total of $3 billion of its common shares under its current share repurchase program. The company has returned over $15 billion to its shareholders in the past eight years through dividend and share repurchases.

Honeywell International Inc. is a diversified technology and manufacturing company, serving customers worldwide with aerospace products and services, control, sensing and security technologies for buildings, homes and industry, turbochargers, automotive products, specialty chemicals, electronic and advanced materials, process technology  for refining and petrochemicals and energy efficient products and solutions for homes, business and transportation. Major competitors of Honeywell are BorgWarner Inc. (BWA), Johnson Controls Inc. (JCI) and United Technologies Corporation (UTX).

We currently maintain a Neutral rating on Honeywell, with a Zacks #3 Rank (short-term Hold recommendation).

 
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