Diversified technology and manufacturing company Honeywell International Inc. (HON) reported Friday an increase in second-quarter profit, helped by improved demand across most of its businesses. The company also raised its full year earnings and sales forecast and said it remains cautious about the near-term outlook due to the ongoing economic uncertainties.
For the second quarter, net income attributable the Morris Township, New Jersey-based company improved to $468 million from $450 million a year ago. Earnings per share remained flat at $0.60.
Excluding non-cash pension expense, earnings increased 24% to $0.78 per share from $0.63 per share a year ago.
On average, 18 analysts polled by Thomson Reuters expected the company to report earnings of $0.57 per share for the quarter. Analysts' estimates typically exclude special items.
Segment-wise, profit from Aerospace decreased to $443 million from $454 million in the preceding year. Sales were down 3%. Automation and Control Solutions posted profit of $401 million, up from $346 million a year ago and sales improved 7% from last year. Profit from Specialty Materials increased to $214 million from last year's $150 million, with 20% growth in sales. Transportation Systems profit for the quarter was $115 million, higher than $25 million in the year earlier and sales surged 30% from last year.
Net sales for the quarter grew 8% to $8.16 billion from $7.57 billion in reported in the prior-year quarter. Fifteen analysts estimated revenues of $8 billion for the quarter.
In the sequential first quarter, net income attributable to the company was $386 million or $0.50 per share, and adjusted earnings totaled $0.68 per share. First-quarter net sales was $7.78 billion.
Looking ahead to the full year, the company expects earnings in the range of $2.40-$2.50 per share on a reported basis, and $3.14-$3.24 per share, excluding non-cash pension expense. Earlier, the company had projected fiscal 2010 earnings in the range of $2.30 - $2.45 per share and adjusted earnings in the range of $3.07 - $3.22 per share.
Twenty-one analysts currently project full-year earnings per share of $2.48.
The company now anticipates full-year sales of $32.4 billion - $32.9 billion, up from the prior guidance of $31.5 billion - $32.3 billion. Eighteen analysts anticipate revenues of $32.15 billion for the year.
Dave Cote, chairman and chief executive officer of the company said, "Turbochargers and general industrial products continue to rebound, and we're starting to see a sequential up-tick in commercial aerospace orders. Our improved 2010 outlook reflects our strong first half performance and the continued momentum we're seeing in our businesses, but, as usual, we'll maintain a conservative stance in our planning assumptions and operating disciplines for the remainder of the year."
HON is currently trading at $43.07, up $0.41 or 0.96%, on a volume of 596 thousand shares In the past 52 weeks, the shares have been trading in a range of $33.07-$48.63 on the NYSE.
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