Business

Honeywell raises full-year profit forecast as air travel surges

(Reuters) -Honeywell Worldwide Inc raised its full-year revenue forecast on Friday, as a restoration in aviation markets resulting from a pickup in journey boosted demand for the corporate’s elements, software program and aftermarket providers, sending its shares up as a lot as 6%.

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

Booming air journey demand has prompted legacy plane makers reminiscent of Boeing Co and Airbus SE to extend manufacturing, resulting in greater orders for elements makers reminiscent of Honeywell.

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

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

Honeywell’s outcomes have been additionally helped by greater gross sales within the phase that makes fireplace sensors and safety cameras for buildings as extra folks returned to working from workplace.

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

Honeywell additionally raised the decrease finish of its full-year gross sales steerage 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 which minimize its outlook on Tuesday.

Honeywell’s first-quarter adjusted web earnings per share of $1.91 beat analyst expectations of $1.86 per share, in accordance with Refinitiv information, on greater 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 by March as the corporate “considerably” suspended Russia operations.

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

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