Honeywell Raises Low End of Forecast as Profit Tops Views Spencer Platt, Getty Images

Honeywell Raises Low End of Forecast as Profit Tops Views

Honeywell: “Core organic sales growth was driven by higher repair and overhaul activities, new platform launches and higher global turbo penetration on passenger vehicles.”

Honeywell International Inc. raised the low end of its profit forecast after first-quarter earnings topped analysts’ estimates with the help of a $5.1 billion acquisition that bolstered sales.

Full-year profit is now expected to be $6.55 to $6.70 a share, Honeywell said. The company also raised it sales forecast and now sees revenue of $40.3 billion to $40.9 billion. The previous forecasts had been for earnings of $6.45 to $6.70 and sales of $39.9 billion to $40.9 billion.

“Core organic sales growth was driven by higher repair and overhaul activities, new platform launches and higher global turbo penetration on passenger vehicles,” Honeywell said in a statement.

The purchase of Elster, the largest acquisition since CEO Dave Cote took the helm in 2002, was completed at the end of 2015. The maker of water and gas meters helped cushion a sales drop at the Performance Materials and Technologies unit, which provides services and products to the oil and gas industry.

Although investors have encouraged Cote to use Honeywell’s cash to acquire more companies, they balked at a $90 billion bid in February to take over United Technologies Corp. as too large and risky. Cote scuttled the bid after United Technologies rebuffed the offer and aerospace customers, including Airbus Group SE, opposed the deal.

First-quarter earnings rose to $1.53 a share from $1.41 a year ago. That beat the $1.50 average of 19 analysts’ estimates compiled by Bloomberg. Sales increased 3.4% to $9.52 billion. Analysts had anticipated $9.37 billion.

By Thomas Black

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