Honeywell sees 2009 profit down 6-16 percent

* Sees 2009 profit down 6 to 16 percent

* Sees revenue declining

* Expects downturn in nonresidential construction

* Shares climb 6 percent

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By Scott Malone

BOSTON (Reuters) - Honeywell International Inc (HON.N) expects profit to fall between 6 percent and 16 percent next year, in line with Wall Street's expectations, as a deepening global recession pounds the construction, aviation and automotive markets it serves.

The world's largest maker of cockpit electronics expects the overall global economy to grow 1 percent next year. But in the United States, where it generates about half its sales, Honeywell expects the economy to contract.

Its shares rose 6 percent with investors expressing relief that the outlook was not more dire.

"It's not that big a stretch at this point for companies to come in and say, 'Yeah, things are bad, but we're still going to earn money," said Peter Klein, senior portfolio manager at Fifth Third Asset Management in Cleveland, which holds Honeywell shares.

"People are pricing companies as if they're going out of business, as if they're going to be challenged for years," Klein added. "If companies start steering them away from that, you're going to get a relief rally."

Honeywell expects to earn $3.20 to $3.55 per share in 2009, compared with a forecast of $3.76 to $3.80 for this year, though it warned that fourth-quarter results were tracking toward the bottom of that range.

Wall Street had expected 2009 profit of $3.40 per share, according to Reuters Estimates.

The company expects 2009 revenue to come to $33.6 to $35.3 billion, down from an expected $36.6 billion this year.

"We're clearly planning for a tough economic environment in '09 with negative growth in the U.S. and Europe and moderating growth in the key emerging regions," said Dave Anderson, chief financial officer. "Our guidance for '09 is built upon what we believe are achievable top line targets with aggressive cost management actions."

Analysts noted the company's focus on cost-cutting over the past few years had paid off and took heart in Anderson's words that new cost-cutting expenses would be offset by gains.