Honeywell International Inc., which recently announced plans to spin off certain operations, saw sales for its latest quarter rise more than expected, propelled by its segment that sells products aimed at improving workplace safety and productivity.
Total sales in Honeywell's safety and productivity segment increased 21% to $1.41 billion. The company said the results were boosted in part by demand for industrial safety products and voice-enabled workflow products.
The company's aerospace segment, its largest by revenue, posted sales of $3.66 billion, a 2% climb compared to last year, driven by lower customer incentives and strengthenigng U.S. defense spending.
Shares in the Morris Plains, N.J.-based conglomerate edged up 0.9% to $144.90 in premarket trading. The stock has risen 33% over the past year.
For its latest quarter, Honeywell posted profit of $1.35 billion, or $1.75 a share, up from $1.24 billion or $1.60 a share a year ago. Sales increased 3% to $10.12 billion.
Analysts surveyed by Thomson Reuters had expected earnings of $1.75 per share and $10.01 billion in revenue.
Last week, Honeywell announced plans to spin off its home and transportation businesses into two new companies by the end of next year. The restructuring aims to streamline operations under recently installed Chief Executive Darius Adamczyk.
Mr. Adamczyk launched a months-long review shortly after taking the reins in March. The effort was pushed forward in late April when activist investor Third Point unsuccessfully petitioned Honeywell to spin off its aerospace unit.
According to Dealogic, this year is on pace to post the fewest completed spin-offs since 2010 as companies are hesitant to execute complex transactions amid pending tax reform. So far this year there have been 10 completed spin-offs in the U.S. compared to an annual average of 30 spin-offs between 2011 and 2016, according to Dealogic data.
Write to Ezequiel Minaya at Ezequiel.Minaya@wsj.com
(END) Dow Jones Newswires
October 20, 2017 08:35 ET (12:35 GMT)