Diversified technology and manufacturing company Honeywell International Inc. (HON) Friday reported increased profit for the first quarter, helped by lower costs, even as revenues remained unchanged amid slow global growth environment. Citing the strong start to 2013, the firm raised the low-end of its full-year earnings guidance by five cents, while cutting its revenue outlook.
Honeywell Chairman and CEO Dave Cote said, ''Honeywell delivered better than expected quarterly earnings and margins even in a continued slow global growth environment. We had strong productivity in the quarter, and our balanced portfolio of both short- and long-cycle businesses continues to drive our outperformance.''
Net income attributable to the company for the quarter increased to $966 million from $823 million in the prior year. Earnings per share grew to $1.21 from $1.04. On average, 23 analysts polled by Thomson Reuters expected earnings of $1.14 per share for the quarter. Analysts' estimates typically exclude special items.
Earnings reflect a lower tax rate and reduced expenses compared to last year with cost of services sold falling 7 percent to $1.216 billion. Net sales were almost flat at $9.328 billion compared to last year's $9.307 billion. Analysts expected revenues of $9.44 billion. Product sales were marginally higher at $7.47 billion while Service sales fell nearly 4 percent to $1.85 billion.
Aerospace sales slipped 1 percent to $2.911 billion due to a 1 percent slide in Commercial businesses as a result of higher than normal prior year shipments to commercial airline and BGA original equipment customers. Further, Defense and Space saw a 1 percent drop as expected.
Sales at Automation and Control Solutions were flat at $3.79 billion. Energy, Safety, and Security sales were up due to growth in ECC and Security products, but were partially offset by lower sales in Process Solutions and Building Solutions and Distribution. Sales advanced 6 percent in Performance Materials and Technologies to $1.717 billion due to the acquisition of Thomas Russell, higher petrochemical catalyst shipments and equipment sales in UOP.
Transportation Systems generated $914 million in the quarter, down 4 percent from last year, driven by around 10 percent lower European light vehicle production volumes and declining aftermarket sales. This was partially offset by the positive impact of new platform launches, including higher turbo gas launches in North America and China.
Looking ahead, the company lifted its full year view for earnings per share to $4.80 - $4.95 from the prior forecast of $4.75 - $4.95.
Revenue forecast was cut to $38.8 - $39.3 billion from $39.0 - $39.5 billion. Wall Street expects earnings of $4.94 per share on revenues of $39.38 billion. HON closed at $71.47 on Thursday.
For comments and feedback contact: editorial@rttnews.com
Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.