HONEYWELL <HON> CITES COST CUTTING FOR GAIN
Honeywell Inc said a gain of
20.1 pct in its 1987 first quarter operating earnings was the
result of cost cutting efforts which began last year.
    Honeywell reported 1987 first quarter operating earnings
rose to 43.7 mln dlrs or 96 cts a share from 36.4 mln dlrs or
79 cts in the same period a year ago.
    Better operating results in each of the company's three 
sectors offset higher interest costs in the first quarter due
to financing the December acquisition of Sperry Aerospace and
the sharing of the Federal Systems subsidiary pre-tax profit
with Honeywell Bull Inc, Honeywell said.
    "Our first quarter results show clear benefits of our
restructuring," chairman Edson Spencer said. "All of our
businesses are producing better results than last year, even
though we do not see significant improvement in the external
market environment," he said.
    Total orders in the first quarter were up substantially,
with a sharp increase in aerospace and defense orders in
addition to those of the new Sperry Aerospace group, it said.
    Domestic industrial automation and control orders were
modestly higher than the same period in 1986, it said.
    Orders in Honeywell's home and building automation and
control business were flat in the U.S. and up in international
markets, it said.
    International orders increased, with the greatest strength
in Europe, Honeywell said.
    The company said that by year-end 1987, it intends to
complete the repurchase of 3.3 mln shares remaining of a five
mln share buyback program which began in 1986.
 Reuter
