Diversified U.S. manufacturer Honeywell International Inc reported a 38 percent drop in profit and cut its full-year earnings forecast, citing the slumping economy.

The world's largest maker of cockpit electronics said on Friday it expects to earn $2.85 to $3.20 per share for 2009, well below its December forecast of $3.20 to $3.55 per share.

The company posted earnings of $397 million, or 54 cents per diluted share. That compares with profit of $643 million, or 85 cents per diluted share, a year earlier.

The Morris Township, New Jersey-based company has seen demand fall off for its components of light jets and systems used to control large buildings in the face of slumping global flying hours and soft construction markets.

Shares are up 3.4 percent to $33.50 in premarket trading.

Honeywell shares are down about 47 percent over the past 12 months, a slightly more modest slide than the 50 percent fall of the Standard & Poor's capital-goods industry index

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(Reporting by Scott Malone; Editing by Derek Caney)

New Jersey Electronics