By Michael Calia
Honeywell International Inc. said its second-quarter earnings
rose 7.6% as most of its segments posted sales growth.
The results topped the industrial conglomerate's
expectations.
Honeywell, encouraged by recent results, also raised the lower
end of its earnings view for the year by five cents to $5.45 to
$5.55 a share, citing strong performance and outlook.
Honeywell Chairman and Chief Executive Dave Cote credited the
improved guidance to the company's "very good first half" and its
expectation of continued improvement in organic growth and margins
during the rest of the year.
The company has sought to improve margins by realigning its
business to focus on its aerospace, automation and control, and
high-tech materials operations. Earlier this month, Honeywell
completed the $155 million sale of its friction-materials business
to Federal-Mogul Holdings Corp.
The company lowered its sales guidance for the year--down to a
range of $40.2 billion to $40.4 billion from its previous
projection of $40.3 billion to $40.7 billion--reflecting the
expected absence of $300 million in friction-materials sales.
Overall, the company posted earnings of $1.1 billion, or $1.38 a
share, up from $1.02 billion, or $1.28 a share, during the
prior-year period. The company said in April that it expected
earnings of $1.32 to $1.36 a share.
"Strong execution across our businesses and continued momentum
across the portfolio helped us to deliver stronger than expected
earnings," Mr. Cote said in a news release.
Total sales rose 5.8% to $10.25 billion, surpassing the
company's top-line expectation of $10 billion to $10.2 billion.
Product sales rose 6.9% to $8.28 billion, while service sales
grew 1.3% to $1.98 billion.
The automation and control-systems business, which supplies the
commercial-construction industry, rose 10% to $3.61 billion. The
aerospace business's sales declined slightly to $2.99 billion.
The company's performance materials and technologies sales
posted a 6.3% increase in sales to $2.64 billion, while
transportation systems sales rose 7.6% to $1.02 billion.
Write to Michael Calia at michael.calia@wsj.com
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