Diversified U.S. manufacturer Honeywell International Inc said profit eased 1 percent, reflecting weak demand for aviation components and equipment used to heat and cool large buildings.

The world's largest maker of cockpit electronics said on Friday fourth-quarter earnings came to $698 million, or 91 cents per share, compared with a profit of $707 million, or 97 cents per share, a year earlier.

The results came in a penny ahead of analysts average forecast of 90 cents per share, according to Thomson Reuters I/B/E/S.

Revenue fell 7 percent to $8.07 billion. Wall Street had looked for $8.15 billion in revenue.

The Morris Township, New Jersey-based company, which also makes automotive turbochargers and specialty chemicals, has forecast a rebound in demand this year, though pension accounting costs will weigh on its bottom line.

The company reiterated its 2010 profit forecast of $2.20 to $2.40 per share this year, including 80 cents of anticipated non-cash charges related to pension accounting.

For the year, analysts look for profit of $2.40, excluding items.

Honeywell shares are up about 15 percent over the past year, lagging the 26 percent rise of the Standard & Poor's capital goods industry index <.GSPIC>.

Honeywell's competitors include United Technologies Corp in aerospace and building control systems, Goodrich Corp in aviation and DuPont Co in specialty materials.

(Reporting by Scott Malone; Editing by Derek Caney)