Honeywell profit beats on higher demand for aircraft parts
Reuters
Published Jul 20, 2018 07:03AM ET
Honeywell profit beats on higher demand for aircraft parts
(Reuters) - Honeywell (N:HON) on Friday reported a higher-than-expected quarterly profit as it sold more aircraft parts and services to business jet and commercial airline customers, prompting the company to raise its 2018 earnings forecast for the third time.
Honeywell is benefiting from a rise in global travel amid expanding economic growth, while also seeing robust demand from the defense industry.
Sales in the aerospace division, which makes auxiliary power units, braking systems and other parts for Boeing (NYSE:BA) and Airbus single-aisle planes, rose about 10 percent to $4.06 billion in the second quarter, while margins expanded by 30 basis points to 22.6 percent.
Honeywell raised its 2018 forecast for profit to $8.05-$8.15 per share from $7.85-$8.05, and sales to $43.1 billion-$43.6 billion from $42.7 billion-$43.5 billion.
Net income attributable to Honeywell fell to $1.27 billion, or $1.68 per share, in the quarter ended June 30, from $1.39 billion, or $1.80 per share, a year earlier.
Excluding items, Honeywell earned $2.12 per share, beating analysts' average estimate of $2.01, according to Thomson Reuters I/B/E/S.
The company's revenue rose 8.3 percent to $10.92 billion, and was above Wall Street estimate of $10.80 billion.
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Written By: Reuters
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