Salem Radio Network News Tuesday, May 24, 2022

Business

Honeywell raises full-year profit forecast as air travel peaks

(Reuters) -Honeywell International Inc raised its full-year profit forecast on Friday, as a recovery in aviation markets due to a pickup in travel boosted demand for the company’s parts, software and aftermarket services.

Shares of the company were up 2% at $193.3 before the bell.

Booming air travel demand has forced legacy aircraft makers such as Boeing Co and Airbus SE to increase production leading to higher orders for parts makers such as Honeywell.

“We see solid recovery in our key commercial aerospace and energy end markets,” Honeywell Chief Executive Darius Adamczyk said.

The company also expects full-year 2022 adjusted profit per share of between $8.50 and $8.80, higher than its previous forecast range of $8.40 to $8.70.

The North Carolina-based company said earlier this month it was exploring adding more suppliers, as part of preparations to meet higher demand for aircraft makers.

The industrial conglomerate raised the lower end of its full-year sales guidance to $35.5 billion to $36.4 billion from its previous guidance range of $35.4 billion to $36.4 billion.

Defense and aerospace peer Raytheon Technologies had lowered its full-year revenue forecast, and said earlier this week it sees supply chain constraints across its commercial portfolio including electronics, aluminum and titanium.

Honeywell’s first-quarter adjusted net income per share of $1.91 beat analyst expectations of $1.86 per share, according to Refinitiv data, on higher prices.

Meanwhile, first-quarter sales in the company’s high-margin aerospace unit, which makes parts such as aircraft engines and navigation radios, rose 4.4% to $2.75 billion.

(Reporting by Shivansh Tiwary in Bengaluru; Editing by Krishna Chandra Eluri)

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