Honeywell International released the earnings results from its first quarter, posting earnings of $1.41 per share or $1.1 billion on revenue of $9.21 billion. Analysts had been expecting earnings of $1.39 per share on $9.48 billion.

Basic earnings were $1.42 per share. In last year’s first quarter, earnings were $1.28 per share.

Honeywell International Inc. Beats Earnings Estimates

Key metrics from Honeywell’s earnings report

The company reported a 2% increase in core organic sales. The 5% decline in reported sales was the result of the FM divesture and fluctuations in foreign currency. Honeywell improved its segment margin by 220 basis points, bringing it to 18.7%.

Honeywell’s Aerospace segment reported sales of $3.607 billion for the quarter, a 6% decline from last year, and profits of $752 million, a 7% year over year increase. The company’s Automation and Control Solutions’ sales fell 3% to $3.264 billion, while profits for the segment increased 10% to $516 million for the first quarter.

The company’s Performance Materials and Technologies saw a 5% decline in sales, which fell to $2.342 billion, and a 6% increase in profits, which rose to $503 million for the quarter.

“Each of our businesses grew on a core organic basis and generated significant margin improvement in the first quarter as a result of new product introductions, High Growth Region performance, other commercial excellence and prudent cost management,” said Dave Cote, chairman and chief executive of Honeywell, in a statement this morning. Free cash flow was adversely impacted by the payment of the OEM incentives we accrued in the fourth quarter and the timing of tax payments, and we remain on track to our full-year guidance.”

Honeywell adjusts guidance

For the full year, Honeywell bumped up its guidance range by 8% to 11%, bringing it to between $6 and $6.15 per share. The previous guidance for earnings per share was $5.96 to $6.15 per share.

However, the company reduced its sales guidance from a range of $40.5 billion to $41.1 billion to a range of between $39 billion and $39.6 billion.