A one-time hit as a result of the recent US tax reforms saw electronics giant Honeywell International Inc (NYSE:HON) swing to a loss in the fourth quarter.
The net loss for the three months ended December 31 was US$2.41bn, or US$3.18 per share, compared to a profit of US$1.03bn, or US$1.34 per share, in the same period a year earlier.
READ: Honeywell unveils spinoff plans to create two publicly traded companies
Take out the US$3.8bn tax provision though and the industrial conglomerate earned US$1.85 per share – marginally ahead of Wall Street's expectations of US$1.84.
Quarterly revenues rose almost 9% to US$10.84bn, also ahead of forecasts of US$10.75bn.
Honeywell – which makes everything from fans to thermostats to jet engines – raised its 2018 earnings guidance to between US$7.75 to US$8.00, compared with US$7.55 to US$7.80 previously.
The company said the upgrade reflected the lower effective tax rates going forward.
READ: Honeywell sees full year and fourth quarter earnings at top end of guidance range
“Honeywell delivered a strong fourth quarter, capping an exceptional year for the company,” said president and chief executive Darius Adamczyk.
“Honeywell’s transformation to a software-industrial leader is well underway, and in 2018, we expect to complete the spin-offs of our Homes and Global Distribution business, and our Transportation Systems business, which will position Honeywell for future growth and margin expansion.”
Shares fell 1.4% to US$159.60 in pre-market trading on Friday.