Honeywell restates earnings for last three years

Honeywell International, the diversified aircraft components’ manufacturer,
has restated its earnings for the last three financial years to reflect a change
in the way it accounts for sales promotions.

The company said it lowered income from continuing operations by $17m (£9m)
in 2005, $35m (£18.5m) in 2004 and $35m (£18.5m) in 2003 and also reduced net
income for these years by 2 cents per share, 4 cents per share 4 cents per share

In February, Honeywell changed the way it accounts for the free or deeply
discounted wheels and brakes it provides some customers, to encourage them to
buy higher-value products like landing gear.

Previously, it had capitalized the cost of these items over their estimated
life span. Now it accounts for the charge when the products are delivered

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