Apple’s Profit Soars 47%; Honeywell’s Net Dives 42%

Computer makers reported varying results Tuesday as Apple Computer said its quarterly profit rose 47% and Honeywell said its quarterly profit fell nearly 42%.

Analysts said Apple’s strong gains reflected a year of stringent cost-cutting measures combined with an upturn in sales to its specialized markets. Honeywell was hurt by slow capital spending, the same factor that caused International Business Machines’ earnings to slump 27% in its third quarter.

Apple, based in Cupertino, Calif., said it earned $32.9 million in its fourth quarter ended Sept. 26, up from $22.4 million a year earlier. Revenue rose 25% to $510.8 million from $409.7 million a year earlier.

Honeywell, based in Minneapolis, said it earned a profit of $32.4 million in its third quarter, down from $55.7 million a year earlier. Revenue rose 6.1% to $1.66 billion from $1.57 billion a year earlier.

Honeywell’s quarterly results included $6.4 million in charges against profits related to the reduction of jobs in its computer and controls operations in Phoenix, which was announced in August.

The company says it intends to take another charge in the fourth quarter related to its September announcement that it planned to eliminate by the end of the year about 4,000 jobs, or more than 4% of its worldwide work force.

For the year to date, Honeywell said net earnings fell 39% to $94.7 million from $154.4 million a year earlier. Revenue rose about 7% to $4.9 billion from $4.6 billion a year earlier.

Apple has been helped by cost-cutting, the growing acceptance of its Macintosh microcomputer in offices and the continuing popularity of its Apple II series of microcomputers in schools, the company said.

For its full fiscal year, Apple said its profit rose 151% to $154 million from $61.2 million the year before. Revenue for the year totaled $1.9 billion, down from $1.92 billion a year earlier.

Honeywell attributed its earnings decline primarily to continued weakness in the U.S. computer and industrial markets.

Honeywell, which makes control systems and products and aerospace and military goods in addition to computer goods, announced last month that it was negotiating with Japan’s NEC Corp. and France’s state-owned Groupe Bull for those companies to take a major stake in Honeywell’s languishing computer business.