HONEYWELL BEATS ESTIMATES
-By Oriade Ayomide
Honeywell International Incorporated posted a fourth-quarter profit that beat analysts’ estimates as sales of energy-related products and turbochargers increased. The company whose product line spans aviation controls to solvents, is said be benefiting from rising oil and gas investments worldwide that are driving demand for materials, equipment and services.
Honeywell’s earnings excluding changes to the company’s pension-fund valuation climbed by 13 per cent to $1.24 per share from $1.10, a year earlier. The Morris Township, New Jersey-based company makes membranes to filter natural gas and won contracts last quarter to upgrade petrochemical plants in China and a Swedish refinery. The company’s Sales rose by 8.4 per cent to $10.4bn, topping analysts’ average predictions of $10.2bn. Revenue was led by a 12 per cent increase at the performance materials unit to $1.73bn and a 16 per cent gain for turbochargers to $978m.
According to the company, Aerospace sales rose by 2.6 per cent to $3.1bn, helped by a $63m one-time royalty payment. Sales at Automation and Control Solutions rose by 9.7 per cent to $4.58bn as a residential housing rebound drove sales for safety and security products. The shares rose by 1.1 per cent to $90.74 at 10:39 a.m. in early New York trading. They have fallen by 1.7 per cent so far this year, compared with a 1.1 per cent drop in the Standard & Poor’s 500 Index.