(Reuters) - Diversified manufacturer Honeywell International Inc (HON.N) said it expects sales at its defense and space business to fall by 4 percent to 5 percent this year as the United States pares back its military spending.
The world’s largest maker of cockpit electronics said on Tuesday the forecast decline follows a 2 percent drop in 2011. It looks for defense revenue to stabilize in 2013 and resume slow growth the year after.
This forecast was included in its previously disclosed full-year earnings target of $4.25 per share to $4.50 per share, up 5 to 11 percent from 2011.
The U.S. Defense Department’s aims to cut spending by $487 billion over the next decade by eliminating 100,000 ground troops as it winds down from major operations in Afghanistan and Iraq and aims for a smaller, more mobile force.
Reporting By Scott Malone; Editing by Gerald E. McCormick