Honeywell (NYSE:HON) revealed stronger-than-expected first-quarter sales and earnings on growing demand in its commercial aerospace and performance materials businesses, leading the company to lift its fiscal 2012 guidance.
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The Morristown, N.J.-based diversified manufacturer on Friday reported net income of $823 million, or $1.06 a share, compared with a year-earlier $705 million, or 90 cents.
Excluding one-time items, the company, whose products range from thermostats to cockpit electronics, earned $1.04 a share, which is ahead of average analyst estimates of 99 cents in a Thomson Reuters poll.
Revenue for the three-month period was $9.3 billion, up 7% from $8.7 billion a year ago, beating the Street’s view of $9.15 billion. That figure was lifted by 9% sales growth to $2.95 billion in its aerospace unit, led by spare parts, and a 19% jump to $1.35 billion in performance materials and technologies.
Honeywell CEO Dave Cote attributed the gains to solid momentum in the U.S. and high growth regions, which he said more than offset softness in Europe.
“Honeywell had a terrific start to the year highlighted by higher than expected organic sales, 70 basis points of margin expansion, and strong double-digit earnings growth," Cote said.
The company lifted its fiscal 2012 earnings forecast, now expecting full-year earnings of $4.35 to $4.55 a share, up from an earlier $4.25 to $4.50. Analysts are looking for a profit of $4.44.
Honeywell narrowed its revenue view by lifting its bottom-end guidance slightly. It predicts sales of $38 billion to $38.6 billion, from an earlier view of $37.8 billion and $38.9 billion. The Street is forecasting sales of $38.53 billion.