Honeywell Raises Full-Year Forecast On Strong Aerospace Growth Written 23 April 2018

Reuters reported that Honeywell posted “higher-than-expected quarterly profit on Friday and lifted its full-year earnings forecast for the second time this year, citing higher sales in its aerospace business.” The aerospace division benefited from a “rise in global travel as it sold more aircraft parts and services to the commercial airline sector, while also seeing robust demand from defense and business jet customers.” Sales rose by almost 12 percent to $3.98 billion, while margins expanded to 22.5 percent. According to Honeywell CFO Thomas Szlosek, “Growth in both air transport and business aviation was nearly double-digit, driven by robust deliveries on key platforms, including the Airbus A320, Boeing 737 and Bombardier Challenger 350.” Honeywell produces engines for Bombardier and Textron business jets, and reported that it has seen signs of market recovery as corporate tax cuts have encouraged spending on business jets. Honeywell, Vertical Research Partners analyst Robert Stallard stated, has a higher share of parts on new business jets, including the Gulfstream G500 and G600, which will further benefit the company if the planes are certified later this year as expected. Honeywell “anticipates continued double-digit growth in its defense business, as rising global defense spending boosts demand for spares, sensors and guidance systems.”
More Info (Reuters)