Honeywell 2Q Profit Rises 11 Percent
MORRIS TOWNSHIP, N.J. (AP) — Honeywell International Inc. said Wednesday its second-quarter net income rose 11 percent, boosted by higher demand and profitability.
The Morris Township, N.J.-based technology and manufacturing company also raised the low end of its previous full-year profit prediction range, citing expectations of continued growth.
Honeywell said its net income for the three months ended June 30 totaled $902 million, or $1.14 per share, up from $810 million, or $1.02 per share, in the same quarter last year. Revenue rose 3.8 percent to $9.44 billion from $9.09 billion.
The results beat Wall Street predictions, while the revenue fell slightly short. Analysts, on average, expected a profit of $1.11 per share on $9.56 billion in revenue, according to FactSet.
Honeywell said its short-cycle businesses, such as advanced materials, saw strong U.S. demand during the quarter. Its long-cycle businesses continue to grow globally, boosted by a strong backlog of order, along with trends like a move toward energy efficiency and heightened security concerns that drive demand for its products.
Aerospace sales rose 8 percent to $3.03 billion, while sales of automation and control solutions increased 2 percent to $3.96 billion.
Costs and expenses rose 3 percent to $8.21 billion.
Citing its strong backlog and favorable trends, Honeywell narrowed its 2012 profit prediction to between $4.40 and $4.55 per share. It previously forecast profit of between $4.35 and $4.55 per share.
But the company slightly lowered its 2012 sales prediction, saying it now expects revenue between $37.8 billion and $38.4 billion. Honeywell previously predicted sales of between $38 billion and $38.6 billion.
Analysts, on average, expect a profit of $4.49 per share, with estimates ranging from $4.40 to $4.60. Wall Street was projecting revenue of $38.4 billion, with estimates ranging from $37.87 billion to $38.89 billion.
Honeywell shares rose $1.64, or 3 percent, to $56.18 in premarket trading. The stock closed Tuesday at $54.54, basically flat for the year.