FILE PHOTO – A view of the corporate sign outside the Honeywell International Automation and Control Solutions manufacturing plant in Golden Valley, Minnesota, U.S. on January 28, 2010. REUTERS/Eric Miller/File Photo
January 26, 2018
(Reuters) – U.S. industrial conglomerate Honeywell International Inc <HON.N> reported a better-than-expected quarterly profit on Friday and raised its 2018 earnings forecast, citing lower tax rates.
The company’s quarterly results were driven by strength across its four major divisions, including aerospace, its biggest business by revenue.
Sales in the unit, which makes engines for aircraft made by Bombardier Inc <BBDb.TO>, Textron Inc <TXT.N> and General Dynamics Corp <GD.N>, rose 6.4 percent to $3.90 billion in the fourth quarter ended Dec. 31.
Much of the growth in the aerospace business was driven by its commercial aviation aftermarket division as a rise in travel demand boosted sales of spare parts and services to the airline industry.
Honeywell is also benefiting from increased demand from oil and gas customers in the wake of stabilizing oil prices.
Sales in Honeywell’s performance materials and technologies unit, which makes catalysts and adsorbents used in petroleum refining, rose 12.4 percent to $2.85 billion in the quarter.
Shares of the company rose 1 percent to $163.40 in premarket trading.
However, a $3.8 billion tax provision pushed the company to book a net loss of $2.41 billion, or $3.18 per share, in the latest quarter. nPn6VC0tta]
Excluding the tax provision, Honeywell earned $1.85 per share, compared with analysts’ expectations of $1.84, according to Thomson Reuters I/B/E/S.
Revenue rose 8.6 percent to $10.84 billion, topping estimates of $10.75 billion.
Honeywell raised its 2018 earnings forecast range to $7.75 to $8.00 per share, compared with $7.55 to $7.80 per share estimated previously.
Up to Thursday’s close, Honeywell’s stock had risen 37.3 percent in the past 12 months, far outperforming a 23.5 percent increase in the S&P 500 index <.SPX>
(Reporting by Ankit Ajmera in Bengaluru; Editing by Anil D’Silva)
