BOSTON (Reuters) - Honeywell International Inc reported a 2.6 percent rise in profit that met Wall Street forecasts, and the diversified U.S. manufacturer held its 2009 outlook steady as it braces for a "more challenging" year.
The rise in profit came despite a 6.1 percent decline in sales, reflecting the company's sharp focus on cost-cutting over the past few years.
The world's largest maker of cockpit electronics said on Friday that fourth-quarter net income rose to $707 million, or 97 cents per diluted share, from $689 million, or 91 cents per share, a year earlier.
The result matched analysts' forecasts, according to Reuters Estimates.
Revenue fell to $8.7 billion from $9.3 billion.
The company, which also makes thermostats and other equipment to manage large buildings, held its 2009 forecast steady, looking for earnings of $3.20 to $3.55 per share.
"2009 will be a more challenging year," Chief Executive Dave Cote said in a statement. "However, the actions we've taken over the past several years will benefit us in this economic downturn."
In slides posted on its website ahead of a conference call with investors, the company said it expected first-quarter profit of 50 cents to 60 cents per share on revenue of $7.4 billion to $8 billion.
Analysts on average had looked for profit of 71 cents a share on revenue of $8.2 billion.
In light trading before the market opened, HONEYWELL (HON.NY)shares fell 3.6 percent to $31.50.
At Thursday's close, shares of the Morris Township, New Jersey-based company had fallen about 44 percent over the past year, a slightly more modest decline than the 48 percent decline of the Standard & Poor's capital goods industry group <.GSPIC>.
(Reporting by Scott Malone; Editing by Lisa Von Ahn)
