Honeywell issues mixed outlook after second-quarter sales growth

By Dean Seal

Honeywell International raised its full-year sales forecast after gains from its aerospace technologies unit helped boost revenue in the second quarter, although the company lowered its full-year profit forecast.

The industrial conglomerate now expects sales of $39.1 billion to $39.7 billion this year, up half a billion dollars from previous forecasts.

Meanwhile, revised earnings forecasts were lowered to $10.05-$10.25 per share from the previous forecast of $10.15-$10.45 per share.

Honeywell reported profit of $1.54 billion, or $2.36 per share, in the second quarter, compared with $1.49 billion, or $2.22 per share, in the same quarter a year earlier.

Adjusted earnings were $2.49 per share. Analysts polled by FactSet were expecting $2.42 per share.

Revenue rose 5% to $9.58 billion, topping analysts’ forecasts of $9.41 billion.

Aerospace Technologies sales rose 16% organically to $3.89 billion, marking the eighth consecutive quarter of double-digit growth, with commercial aviation and commercial original equipment sales posting strong gains.

Meanwhile, industrial automation sales fell 8% organically due to low volumes in warehousing and workflow solutions.

Honeywell said the revision to its mixed outlook was due to second-quarter results and the impact of acquisitions.

Shares fell 6.4% in pre-market trading to $200.01.

Write to Dean Seal at [email protected]

(END) Dow Jones Newswires

July 25, 2024, 06:59 ET (10:59 GMT)