NEWARK, N.J. -- Diversified manufacturer Honeywell International Inc. on Friday reported that first-quarter profit rose 22 percent on higher sales, and contracts from Embraer, Gulfstream and Airbus.
The results beat Wall Street forecasts and Honeywell raised its annual sales forecast and the lower end of its earnings forecast for the year, sending its shares up more than 4 percent in premarket trading.
The Morris Township-based company said earnings increased to $643 million, or 85 cents per share, in the three months ended March 31 from $526 million, or 66 cents per share, a year earlier.
Revenue climbed 11 percent to $8.9 billion from $8.04 billion a year earlier.
Analysts polled by Thomson Financial had expected net income of 82 cents per share on sales of $8.73 billion.
Honeywell raised its 2008 profit outlook to a range of $3.70 to $3.80 per share and lifted its sales to a range of $36.8 billion to $37.4 billion. Its prior forecast was for profit between $3.65 and $3.80 per share on sales between $36.1 billion and $36.7 billion.
Analysts expect profit of $3.76 per share on sales of $36.79 billion.
Its shares rose $2.60, or 4.5 percent, to $60 in premarket trading.
"Our global reach and diversified portfolio of businesses helped to drive organic sales growth across all regions. We also continue to win major multiyear contracts that support the favorable long-term outlook for our businesses," Honeywell Chairman and CEO Dave Cote said in a statement.
"We remain confident in Honeywell's outlook despite tougher global economic conditions," Cote said.
All four of Honeywell's business segments reported sales growth, with the biggest jump, 17.5 percent, in specialty materials. Sales in aerospace, Honeywell's largest segment, rose 6.7 percent to $3.03 billion.
Cote said the company continues to invest in acquisitions. Earlier this month, Honeywell said it would buy Norcross Safety Products LLC, of Oak Brook, Ill., for $1.2 billion to expand its line of personal protective gear. Norcross had revenues of about $609 million in 2007.
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