Honeywell Strengthens Outlook as 3Q Profit Up 44%
Honeywell International Inc. (NYSE:HON) reported a 44% increase in profit for the third quarter, as a period of strong sales lifted the company to earnings of $1.10 per share.
The company’s earnings-per-share increased 45% from 76 cents over the same period last year, while its overall third-quarter sales were up 14% to reach $9.3 billion, compared with $8.1 billion from the same period last year. The company said its earnings per share included 37 cents in gains from adjustments to post-employment benefits, the sale of a divested unit, and a lower tax rate that is expected to offset in the fourth quarter.
The company originally forecasted earnings of between 96 cents and $1.01 per share, and revenue of $9.1 billion to $9.4 billion.
"Our third quarter sales growth reflects a particularly robust Commercial Aerospace upcycle, with growth in both original equipment and aftermarket sales,” said Dave Cote, Honeywell’s chairman and chief executive. “It also highlights the company's extensive innovation pipeline and increasing presence in high growth regions in all our businesses."
Third-quarter growth was driven by double-digit sales increases in automation and control solutions, as well as transportation systems. The company’s automation and control business, the largest division of Honeywell, makes commercial construction products. Honeywell’s aerospace business saw an 8% uptick in sales.
Honeywell, which also produces building control and safety products, raised its full-year outlook to between $4 and $4.05 pro forma earnings per share. The company expects sales of $36.5 billion to $36.7 billion for the fiscal year.
Shares of Honeywell were up $1.77, or 3.65%, shortly after the market opened Friday.