Honeywell International (HON) reported a 4.2% jump in profits for the third quarter, as a performance-materials acquisition offset weakness in the company’s defense unit.
The diversified manufacturer also raised the low end of its full-year outlook by five cents, now looking for adjusted per-share earnings of $4.90 to $4.95. Honeywell lowered its revenue forecast to between $38.8 billion and $39 billion, from a previous estimate of $38.9 billion to $39.3 billion.
Honeywell’s profit for the latest quarter was $990 million, up from $950 million. Per-share earnings rose to $1.24 from $1.20, meeting Wall Street expectations.
Revenue climbed 3.3% to $9.65 billion. Analysts were looking for sales to hit $9.92 billion.
The Morris Township, N.J.-based company said revenue from its aerospace unit was down 2% at $2.97 billion, largely due to an 11% decline in defense and space sales amid “planned ramp downs and program delays.”
Sales at the automation and control-systems segment, which includes products for the commercial construction industry, increased 4% to $4.13 billion.
Performance materials and technologies saw a 10% jump in sales after Honeywell’s acquisition of Thomas Russell. Transportation systems revenue rose 6%.
Operating margin widened to 15.2% from 13.9%.
Shares retreated 1.3% to $85.60 in pre-market trading Friday. As of Thursday’s close, the stock is up 36.6% since the start of the year.