Honeywell raises 2010 forecast
Diversified U.S. manufacturer Honeywell International Inc reported a 4 percent rise in quarterly profit and boosted its full-year forecast, citing rebounding demand for its industrial and automotive products.
The world's largest maker of cockpit electronics said on Friday that second-quarter profit increased to $468 million, or 60 cents per share, from $450 million, also 60 cents per share, a year earlier.
The results topped the analysts' average forecast of 57 cents per share, according to Thomson Reuters I/B/E/S.
Revenue rose 7.9 percent to $8.16 billion, beating analysts' estimates of $8 billion.
We believe the recovery is happening, with improving demand in both our short- and long-cycle businesses, said Chief Executive Officer Dave Cote.
The company raised its full-year profit forecast to a range of $2.40 to $2.50 per share from a prior view of $2.30 to $2.45. Wall Street had looked for $2.48.
Honeywell expects full-year revenue of $32.4 billion to $32.9 billion, compared with analysts' estimates of $32.15 billion.
In slides posted on its website ahead of a conference call with analysts, the company said it expected a third-quarter profit of 57 cents to 62 cents per share. That includes charges of 3 cents to 4 cents from its planned acquisition of Sperian Protection SA and 2 cents for higher taxes.
Analysts on average had looked for earnings of 66 cents per share.
Honeywell shares were up less than 1 percent at $43 in premarket trading.
At Thursday's close, the stock was up about 4.9 percent so far this year, outpacing a 2.4 percent increase in the Standard & Poor's capital goods industry group <.GSPIC>.
During the quarter, the Morris Township, New Jersey-based company said demand from industrial customers had picked up over the last few months, boosting its automation systems and specialty chemicals units.
The company, which also makes systems to manage the temperature and security of large buildings, joins a stream of big U.S. manufacturers to top Wall Street's expectations for the quarter and raise their profit forecasts, a trend that has boosted investors' confidence that an economic recovery is taking hold.
Caterpillar Inc , 3M Co and United Technologies Corp earlier in the week reported similarly strong results.
(Reporting by Scott Malone; Editing by Lisa Von Ahn)
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