Honeywell International Inc. on Friday said profit increased
more than Wall Street expected in its June quarter as lower costs
outweighed a revenue decline.
Shares increased 2.1% in premarket trading.
Honeywell also lifted the bottom end of its per-share guidance
for the year, saying it expects to earn $6.05 to $6.15, up from its
previous outlook for $6 to $6.15.
"We saw margin expansion in each segment, with a significant
portion from gross margin, as our new products, process focus,
disciplined cost management, and restructuring continue to
distinguish Honeywell's performance," Chief Executive Dave Cote
said.
Honeywell's businesses include aviation components, chemicals
and automation and control systems. Its pace of mergers and
acquisitions has slowed considerably over the past year, and
company executives say they have been searching for deals amid an
overheated market. The company has a target of $10 billion in
M&A activity through 2018.
Overall, the company posted a profit of $1.19 billion, or $1.51
a share, up from $1.1 billion, or $1.38 a share a year earlier.
Revenue fell to $9.78 billion from $10.25 billion.
Analysts polled by Thomson Reuters had forecast per-share
earnings of $1.49 and revenue of $9.74 billion.
The company has sought to improve margins by realigning its
business to focus on its aerospace, automation and control, and its
high-tech materials operations.
Sales in the aerospace segment fell to $3.83 billion from $4
billion a year earlier, though profit improved.
In automation, sales fell to $3.55 billion from $3.61 billion,
but again, profit rose. In performance materials, sales fell to
$2.4 billion from $2.64 billion, and profit increased.
Write to Angela Chen at angela.chen@dowjones.com
Access Investor Kit for Honeywell International, Inc.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US4385161066
Subscribe to WSJ: http://online.wsj.com?mod=djnwires