Honeywell International Inc. (NYSE:HON) increased the low end of its earnings outlook for the current year and reported quarterly profit that surpassed consensus forecast, as demand for building-control systems and business-jet engines increased.
The company has revised its guidance for the second time this year. CEO Dave Cote trimmed costs, introduced new products and is taking advantages from the increasing economic growth in the United States that has helped to boost earnings despite currency fluctuations due to strong dollar.
Honeywell is anticipating profit in the range of $6.05 per share to $6.15 per share for the full year, better than its earlier range beginning from $6.
The company said that earnings, excluding pension costs, increased to $1.51 per share for the second quarter, as compared to $1.38 per share last year. Analysts polled by Bloomberg were looking for a profit of $1.49 per share.
Revenue for the quarter slipped 4.7 percent to $9.78 billion, though managed to surpass consensus forecast of $9.74 billion. The company said that sales jumped 3 percent after excluding impact of international currency and divestitures. HON also reaffirmed its revenue forecast of $39 billion to $39.6 billion for 2015.
The Automation and Control Solutions division generated earnings of $567 million, up 6.4 percent from last year. Aerospace unit, engaged in manufacturing of cockpit controls and jet engines, reported an operating profit of $777 million that represented a gain of 2.4 percent. Earnings at the Performance Materials and Technologies segment surged 7.2 percent to $509 million.
The company is expecting earnings in the range of $1.51 per share to $1.56 per share for the current quarter, versus consensus forecast of $1.57 per share. Sales from current businesses, excluding effects of foreign-currency, will increase 3 percent to 4 percent from last year, Honeywell said in a statement.
