Honeywell International Inc. (HON) Beats Earnings Estimates

Honeywell International Inc. (HON) released its second quarter earnings report before opening bell this morning, posting earnings of $1.51 per share on $9.78 billion in sales. Analysts had been looking for earnings of $1.49 per share and $9.74 billion in sales, a 5% year over year decline. In the same quarter last year, Honeywell reported earnings of $1.38 per share and revenue of $10.25 billion.

Key metrics from Honeywell’s earnings report

Honeywell International Inc. management said the company saw a 3% increase in core organic sales and noted a double digit increase in earnings after being normalized for tax.

In the Aerospace division, Honeywell recorded a 5% decline in sales, which fell from $4 billion to $3.8 billion. Profits in the segment increased 2% to $777 million. The main driver of the decline was the divesture of the Friction Materials business and a negative impact from currencies in Transportation Systems. Sales in the Commercial OE business increased 6%.

Honeywell’s Automation and Control Solutions saw sales fall 1% to $3.553 billion but profits increase 6% to $567 million. Negative currency impacts drove the decline, Sales in the Energy, Security, and Fire Safety were strong during the quarter, with a 5% increase. Growth also continued in the Scanning and Mobility, Security, and Fire Safety business.

Sales in Honeywell’s Performance Materials and Technologies declined 1% year over year to $2.395 billion, while profits increased 7% to $509 million. Organically, sales in the segment declined 1%, while they fell 9% on a reported basis due to negative currency impacts. Lower UOP and HPS volumes drove the decline in organic sale. The lower volumes were the result of delays in customer projects. Advanced Materials partially offset the decline through higher volumes.

Honeywell raises guidance

For the full year, Honeywell management upped the low end of their guidance from a range of between $6 and $6.15 per share to between $6.05 and $6.15 per share. They continue to expect sales to decline by 2% to 3% for the full year to between $39 billion and $39.6 billion.

As of this writing, shares of Honeywell were up 2.18% at $105.80 per share.