Bloomberg / BusinessWeek
Honeywell International Inc., the maker of car turbochargers and aircraft parts, boosted its full- year forecast after third-quarter profit topped estimates.
Earnings will be as much as $2.52 a share this year, the Morris Township, New Jersey-based company said today in a statement, up from a July projection of at most $2.50 a share.
Honeywell said sales at all divisions rose on a year-over- year basis, with industrial growth pushing up revenue at the Automation and Control division, the company’s largest. Demand climbed for turbochargers from automakers in Europe, and sales increased at the Aerospace unit as planemakers and owners bought more components.
“We are now seeing an uptick in aerospace’s commercial aftermarket,” Chief Executive Officer David Cote said today on a conference call with investors and analysts.
Net income declined 18 percent to $499 million, or 64 cents a share, from $608 million, or 80 cents a share, a year earlier, Honeywell said. Revenue climbed 9 percent to $8.39 billion.
Honeywell rose 59 cents to $47.26 at 4 p.m. in New York Stock Exchange composite trading. The shares have climbed 21 percent this year.
Analysts, on average, projected third-quarter profit of 62 cents, on revenue of $8.22 billion. Analysts predicted full-year profit of $2.54 a share.
Honeywell’s pension expenses have hurt earnings because the company’s accounting methods recognize losses quicker than those of other industrial companies. Pension-related costs cut third- quarter profit by about 18 cents a share. Honeywell expects about $1 billion in pension contributions this year, Chief Financial Officer David Anderson said on the call.
Honeywell today forecast 2010 revenue of $33 billion. Analysts estimate $32.8 billion. In 2011, sales may grow 5 percent or more, the company said.
