Fueled by higher global orders and the sale of its consumer products unit, Honeywell International (NYSE:HON) on Friday said it more than doubled its fourth-quarter profit, leading the company to raise its fiscal 2011 forecast.
The Morristown, NJ-based company posted net income of $369 million, or 47 cents a share, compared with $150 million, or 20 cents a share, in the same quarter last year.
Excluding special items, Honeywell earned 83 cents a share, short of average analyst estimates polled by Thomson Reuters of 87 cents.
Revenue for the diversified technology and manufacturing company, particularly in the areas of aerospace, automation and specialty materials, was $9 billion, up 12% from $8.1 billion a year ago, beating the Street’s view of $8.84 billion.
Earnings were fueled by across-the-board sales growth in all four of its segments, with aerospace, automation and control, transportation, and specialty materials up 6%, 15%, 18% and 12%, respectively, leading to record margins.
“Our seed planting investments contributed meaningfully to our growth and productivity in 2010, with significant global customer wins, a robust new product pipeline, and traction on our key process initiatives,” said Honeywell CEO Dave Cote. “Our orders are trending higher across our businesses, and with the continued improvement we’re seeing in the global economy, we’re confident in our outlook for higher revenues, and 20% plus earnings growth in 2011.”
The company said on Friday that it is selling its consumer products group business to private investment company Rank Group for $950 million. Cote said the company is pleased with the divesture, noting the $1 billion business does not fit with its portfolio of differentiated, global technologies.
Given the business sale and improved earnings, the company raised its fiscal 2011 earnings guidance to the range of $3.60 to $3.80 a share, up from its earlier view of $3.50 to $3.70 a share. Analysts are expecting earnings of $3.77.