By Austen Hufford
The Wall Street Journal
Company raises the low-ends of its revenue and profit guidance ranges
Honeywell International Inc. reported better-than-expected revenue and earnings in the first quarter, boosted in part by strength in China.
The latest results come seven weeks after the New Jersey-based company withdrew a $90 billion bid to buy fellow industrial giant United Technologies Corp. It backed down from the massive tie up after facing opposition from the target, antitrust regulators and major customers.
Honeywell cited China for some of its sales growth in the most recent quarter and said it expects the country to post double-digital growth in its automation and control-systems business in the current quarter, possibly allaying investor concerns over a potential economic slowdown there.
Honeywell raised the low-ends of its revenue and profit guidance ranges. It now expects annual sales of between $40.3 billion to $40.9 billion and adjusted earnings per share of between $6.55 to $6.70. It previously expected a minimum of $39.9 billion in annual sales and $6.45 in profit per share.
Honeywell makes products ranging from air conditioners and commercial boilers to airplane-cockpit controls and industrial gloves. As it is diversified across business lines, the company also is varied across geographies and generates about half of its revenue outside the U.S.
For the quarter, Honeywell reported a profit of $1.19 billion, or $1.53 a share, up from $1.12 billion, or $1.41 a share, a year prior.
Revenue increased 3.4% to $9.52 billion. Core organic sales–which exclude acquisitions and foreign exchange fluctuations–increased 1%.
Revenue increased 3.4% to $9.52 billion. Analysts polled by Thomson Reuters projected $1.50 in per-share profit on $9.37 billion in sales.
In its automation and control-systems business, which supplies the commercial-construction industry, Honeywell saw an acquisition-driven 13% jump in revenue to $3.68 billion. Still, core organic sales increased 4% on continued growth in its security and fire business and further penetration into China.
In its performance materials and technologies unit, sales fell 9% to $2.14 billion. Foreign currency fluctuations, lower raw materials pass-through and lower gas processing, catalyst and equipment sales all contributed to the decline.
Revenue in the company’s aerospace segment increased 3% to $3.72 billion on higher repair and overhaul activities and new platform launches.
Shares in the company, up 17% in the last three months, were inactive premarket.
Write to Austen Hufford at email@example.com.
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