Honeywell profit beats on higher demand for aircraft parts
FILE PHOTO: A worker is seen building an aircraft engine at Honeywell Aerospace in Phoenix, Arizona, U.S. on September 6, 2016.
REUTERS/Alwyn Scott/File Photo
REUTERS: Honeywell on Friday reported a higher-than-expected quarterly profit as it sold more aircraft parts and services to business jet and commercial airline customers, prompting the company to raise its 2018 earnings forecast for the third time.Honeywell is benefiting from a rise in global travel amid expanding economic growth, while also seeing robust demand from the defense industry.
Sales in the aerospace division, which makes auxiliary power units, braking systems and other parts for Boeing and Airbus single-aisle planes, rose about 10 percent to US$4.06 billion in the second quarter, while margins expanded by 30 basis points to 22.6 percent.Honeywell raised its 2018 forecast for profit to US$8.05-US$8.15 per share from US$7.85-US$8.05, and sales to US$43.1 billion-US$43.6 billion from US$42.7 billion-US$43.5 billion.Net income attributable to Honeywell fell to US$1.27 billion, or US$1.68 per share, in the quarter ended June 30, from US$1.39 billion, or US$1.80 per share, a year earlier.Excluding items, Honeywell earned US$2.12 per share, beating analysts' average estimate of US$2.01, according to Thomson Reuters I/B/E/S.
The company's revenue rose 8.3 percent to US$10.92 billion, and was above Wall Street estimate of US$10.80 billion.(Reporting by Ankit Ajmera in Bengaluru; Editing by Maju Samuel)
Source : https://www.channelnewsasia.com/news/business/honeywell-profit-beats-on-higher-demand-for-aircraft-parts-10548970