2nd-Quarter Net Income Drops 29% at Honeywell

Honeywell Inc. reported that net income for the second quarter of 1985 was $52.5 million, down 29% from the $74.3 million earned in the same period the year before.

Edson Spencer, Honeywell chairman and chief executive, said the earnings decline resulted from the downturn in the computer industry and weakness in capital-spending markets.

The Minneapolis-based company said revenue rose to $1.547 billion from last year’s $1.469 billion.

Figures provided by the company show that operating profits in Honeywell’s information systems business declined in comparison to a strong quarter in 1984. Those figures also show that operating profits in its control systems business declined, primarily in industrial controls.

Spencer said lower operating profit in control products was due primarily to weakness in industrial-component and computer keyboard markets. Residential controls continued to do well, while operating profit in aerospace and defense was even with the second quarter of 1984, he said.

Honeywell said six-month net income was $98.7 million, down 13% from the $113.9 million reported last year. Revenue for the first half of 1985 was $3.027 billion, compared to $2.845 billion reported in 1984--an 8% increase.

In another development, Honeywell reported that its board of directors authorized an increase in the company’s quarterly dividend to 50 cents per share from 47.5 cents, payable Sept. 16 to shareholders of record Aug. 30.