Home Finance Honeywell raises full-year profit forecast as air travel surges

Honeywell raises full-year profit forecast as air travel surges

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An plane engine is being examined at Honeywell Aerospace in Phoenix, Arizona, U.S. on September 6, 2016. REUTERS/Alwyn Scott/File Photograph

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April 29 (Reuters) – Honeywell Worldwide Inc raised its full-year revenue forecast on Friday, as a restoration in aviation markets as a result of a pickup in journey boosted demand for the corporate’s components, software program and aftermarket companies, sending its shares up as a lot as 6%.

Booming air journey demand has prompted legacy plane makers similar to Boeing Co (BA.N) and Airbus SE (AIR.PA) to extend manufacturing, resulting in increased orders for components makers similar to Honeywell.

“Our finish market setup continues to be sturdy with ongoing enchancment in world flight hours, return to public areas and elevated oil costs,” Chief Monetary Officer Gregory Lewis stated throughout an analyst name.

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The corporate, which builds every little thing from plane engines to cockpit elements, stated it expects 2022 adjusted revenue per share of $8.50 to $8.80, increased than its earlier forecast vary of $8.40 to $8.70.

Honeywell’s outcomes had been additionally helped by increased gross sales within the phase that makes hearth sensors and safety cameras for buildings as extra individuals returned to working from workplace.

“We predict underlying demand momentum in Honeywell’s finish markets continues to construct, supporting comparatively good visibility regardless of what stays a difficult working setting,” Citi Analysis analyst Andrew Kaplowitz stated in a analysis notice.

Honeywell additionally raised the decrease finish of its full-year gross sales steering to $35.5 billion to $36.4 billion from its earlier vary of $35.4 billion to $36.4 billion, in distinction to its peer Raytheon Applied sciences (RTX.N) which lower its outlook on Tuesday. learn extra

Honeywell’s first-quarter adjusted internet revenue per share of $1.91 beat analyst expectations of $1.86 per share, in line with Refinitiv information, on increased costs.

Gross sales within the North Carolina-based firm’s high-margin aerospace unit rose 4.4% to $2.75 billion.

Honeywell stated it additionally recorded a $183 million cost and misplaced gross sales of about $30 million within the quarter via March as the corporate “considerably” suspended Russia operations.

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Reporting by Shivansh Tiwary in Bengaluru; Modifying by Krishna Chandra Eluri

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