Honeywell raises sales outlook as profit falls
Honeywell International Inc. raised its financial guidance for the year as sales rose in its latest quarter, even as profit fell.
Net sales at the New Jersey-based industrials firm rose 8.3% to $10.92 billion when compared with the same quarter a year ago. Product sales were up 7.7%, while service sales rose 11%. Honeywell reported sales increases in all of its segments — aerospace, home and building technologies, performance materials and technologies and safety and productivity solutions.
Analysts polled by Thomson Reuters were expecting net sales of $10.8 billion.
The company announced last year it would spin off two of its businesses — home and transportation.
Chief Executive Darius Adamczyk said in prepared remarks that the company expects the home business to be spun off by the end of this year. The transportation-systems business spinoff is expected to close in the third quarter.
Honeywell also raised its guidance for the year and now expects organic sales growth of between 5% and 6%, up from its previous expectations of between 3% and 5%. It now expects to earn between $8.05 and $8.15 a share, up from its old expectations of between $7.85 and $8.05 a share. Free cash flow is expected to be between $5.6 billion and $6.2 billion, up from the company’s old guidance of between $5.3 billion and $5.9 billion.
Honeywell reported a profit of $1.27 billion, or $1.68 a share, down 9% from the $1.39 billion, or $1.80 a share, the company made a year ago. Tax expenses rose 90% to $719 million.
Shares of Honeywell, down 3.8% year to date, rose 2.7% premarket on low volume.
Write to Allison Prang at [email protected]
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