Honeywell restates earnings for last three years
Manufacturer makes restatement to reflect accounting change
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
respectively.
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