Honeywell profit beats on strong aero, warehouse automation sales
(Reuters) - Honeywell International Inc (HON.N) reported better-than-expected quarterly profit on Friday and lifted its full-year forecasts for cash flow and margins, driven by strong sales of aircraft parts and warehouse automation products.
Shares of Honeywell, which makes everything from aircraft engines to catalysts used in petroleum refining, were up 3.2 percent at $160.17 in premarket trading.
Honeywell is benefiting from a rise in global travel amid expanding economic growth, while its business that makes supply chain and warehouse automation equipment and software is riding an ecommerce boom.
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 $4.03 billion, while margins expanded by 80 basis points to 22.1 percent.
Net income attributable to Honeywell increased to $2.34 billion, or $3.11 per share, in the third quarter ended Sept. 30 from $1.35 billion, or $1.74 per share, a year earlier.
Excluding items, Honeywell earned $2.03 per share, beating analysts’ average estimate of $1.99 per share, according to Refinitiv data.
The company’s revenue rose 6.3 percent to $10.76 billion, topping the consensus of $10.75 billion.
Honeywell increased the low end of its 2018 adjusted free cash flow to $5.8 billion from $5.6 billion, while keeping the top end unchanged at $6.2 billion.
The company now expects full-year margins to rise 19.5-19-6 percent, up from 19.4-19.6 percent.
Reporting by Ankit Ajmera in Bengaluru; Editing by Saumyadeb Chakrabarty
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