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Honeywell, the industrial conglomerate, raised the lower end of its full-year earnings guidance on Friday as it delivered a stronger-than-expected set of first quarter results.
The $93bn maker of thermostats and jet engines said robust demand for its home and building technologies and growth in its safety and productivity solutions unit have helped offset the continued sluggishness in its all important aerospace division during the first three months of the year.
Like-for-like growth rose more than 2 per cent during the period. However, revenue dipped 0.3 per cent to $9.49bn as the strong dollar lowered the value of the group’s overseas earnings. Still the revenue was better than the drop to $9.32bn that the market was expecting.
Net income jumped nearly 9 per cent to $1.32bn as better cost controls helped fatten margins across all four divisions. On an adjusted basis, earnings per share was $1.66, well ahead of analysts’ estimates of $1.625.
Shares rose 0.6 per cent in pre-market trading.
As a result of the strong first quarter performance, New Jersey-based Honeywell said it was raising the low end of its full year guidance by 5 cents. It now sees 2017 earnings per
share at between $6.90 to $7.10, excluding divestitures, any pension mark-to-market adjustments, and 2016 debt refinancing charges.
“The commercial aftermarket within aerospace and the global distribution business within home and building technologies remained strong,” chief executive Darius Adamczyk.