("Honeywell 1Q Profit Up 17% On Commercial Aerospace, UOP Sales," published at 8:01 a.m. EDT, misstated the revision of the earnings outlook in the fourth paragraph. A corrected version follows:)
DOW JONES NEWSWIRES
Honeywell International Inc.'s (HON) first-quarter profit rose 17% as the company saw higher-than-expected organic sales, with particular strength in the commercial aerospace and Universal Oil Products businesses.
The results easily beat expectations.
Chief Executive Dave Cote said strong momentum in the U.S. and other high growth regions was more than offsetting softness in Europe.
For the year, the company raised its earnings outlook to $4.35 to $4.55 a share, from its previous projection of $4.25 to $4.50 a share. It narrowed its revenue expectation, seeing $38 billion to $38.6 billion from its previous $37.8 billion to $38.9 billion view.
The maker of aerospace, building control and safety products has steadily benefited from a broad-based increase in demand. The company has said it expects tougher economic headwinds this year, as weakness in Europe affects some of its businesses.
Emerging markets remain a bright spot. China's airlines are expected to account for a growing share of Honeywell's aerospace business, executive Briand Greer recently told Dow Jones Newswires.
Honeywell also recently signed a deal with satellite-operator Inmarsat to provide equipment for airborne broadband connections, a 20-year agreement which could bring in an estimated $2.8 billion in revenue.
The company reported a profit of $823 million, or $1.04 cents a share, compared with a year-earlier profit of $705 million, or 88 cents a share. Previous-quarter earnings on continuing operations were 86 cents.
The company in March saw earnings of 96 cents to 98 cents.
Net sales grew 7.3% to $9.31 billion. Analysts polled by Thomson Reuters recently projected revenue of $9.15 billion.
Honeywell's automation and control-systems business, which serves the commercial construction industry, saw net sales grow 3.6%. The aerospace unit's net sales grew 9.4%, on growing commercial sales, which offset lower defense and space related revenue.
Shares closed Thursday at $58 and were inactive premarket. The stock is up 6.7% so far this year.
-By Kristin Jones; Dow Jones Newswires; 212-416-2208; firstname.lastname@example.org