On the wings of strong sales from its businesses which makes a host of products ranging from supply chain and warehouse automation equipment to aircraft engines and catalysts for petroleum refining, Honeywell International Inc reported a better-than-expected second quarter profits and lifted its full-year profit earnings.
Driven by strong sales from its warehouse automation products and aircraft parts, Honeywell International Inc reported a better-than-expected quarterly profit; it also lifted its full-year forecasts for cash flow and margins.
In pre-market trading, shares of Honeywell were up by 3.2% at $160.17.
Honeywell, which makes everything from aircraft engines to catalysts used for refining petroleum, is benefiting from an e-commerce boom as well as a rise in global travel.
Sales in its aerospace division, which makes auxiliary power units, braking systems and other parts for Boeing and Airbus single-aisle planes, rose by nearly 10% to $4.03 billion, while margins expanded by 80 basis points to 22.1%.
Net income attributable to Honeywell increased to $2.34 billion, equivalent to $3.11 per share, in the third quarter ended September 30 from $1.35 billion, or $1.74 per share, a year earlier.
Excluding items, Honeywell earned $2.03 per share, beating analysts’ average estimate of $1.99 per share.
Honeywell’s revenues rose by 6.3% to $10.76 billion, topping analysts’ consensus of $10.75 billion.
Honeywell increased the low end of its 2018 adjusted free cash flow to $5.8 billion from $5.6 billion, while keeping the top end unchanged at $6.2 billion.
It now expects its full-year margins to rise by 19.5-19-6%, up from 19.4-19.6%.