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MORRIS TOWNSHIP, N.J. (AP) -- High-tech manufacturer Honeywell International on Thursday reported a 30 percent drop in second-quarter profit as its commercial aerospace business continued to slump and pension, administrative and product development costs all rose.

Morris Township-based Honeywell posted net income of $319 million, or 37 cents per share, in the April-June quarter, matching the consensus forecast of analysts surveyed by Thomson First Call. A year earlier, net income was $459 million, or 56 cents per share.

Revenues were up 2 percent to $5.75 billion from $5.65 billion in 2002.

"The results for the second quarter represent solid performance for Honeywell with good revenues, earnings and cash flow in a difficult economic environment," said Dave Cote, chairman and chief executive officer.

Free cash flow totaled $382 million, and one of Honeywell's smaller business segments, transportation systems, increased its operating profit 8 percent to $112 million. Honeywell's second-biggest business, building automation and control systems, saw revenues grow 4.5 percent, to $1.84 billion.

But segment profit for its crucial aerospace business, which makes aircraft electronics, braking systems and other products, plunged 38 percent to $224 million; the segment's revenues dipped 2 percent to $2.2 billion. Cote noted the aerospace business won $1.3 billion in new contracts at the Paris Air Show last month, and got a large order from US Airways for integrated cockpits.

For the first six months of the year, net income was down 31 percent, to $573 million, or 67 cents per share, from $835 million, or $1.02 per share, in the year-ago period. Revenues for the six months were $11.15 billion versus $10.85 billion in 2002.