Wall Street PR

All’s well at Honeywell International Inc (NYSE:HON) as profits heads 17 percent upwards – GE

Boston, MA 04/22/2013 (wallstreetpr) – As the demand for energy surged, Honeywell International Inc (NYSE:HON) (Closed: $74.18, Up by 3.79%) projected a rise of close to 7.9 percent per share in the second-quarter. This estimate was higher than the average analyst estimate. Honeywell is a manufacturer of cockpit thermostats and controls. The company said that its profit may rise from the $1.14 that it stood at a year earlier, to $1.18-$1.23 per share. The average analyst estimate had been $1.21. An increase in demand for Honeywell’s energy services are being driven by a spurt in natural gas production in the United States and in companies that are constructing petrochemical plants.

Outperforming rivals

These factors are making up for the drop in the company’s automobile turbocharger business which depends largely on the demand for trucks and cars. A prominent analyst said that the consecutive strong quarter that the company has had is a reflection of the global equilibrium that seems to be emerging in the short and long-term benefits. Honeywell’s projection is still an indication that it is outperforming its contemporaries. Like almost all other company’s Honeywell too has been bearing the brunt of the snail-paced U.S economy as well as the economic downturn in Europe.

General Electric Company (NYSE:GE) (Closed: $21.75, down by 4.06%) has also posted a dip in its first-quarter sales as it curtailed manufacturing growth at its Power and Water business. Though Honeywell sales are not on level, its profit is outperforming.

Sales vs. Profit

The manufacturer has raised the lower end of its earnings-per- share target for 2013 to $4.80 which is a reduction of 5 cents. The top end has been left at $4.95. The company’s annual sales forecast has been reduced at both ends and the current projection is $38.8 billion-$39.3 billion which amounts to a figure of $200 million. The first quarter net income rose to $966 million which was a rise of 17 percent or $1.21 per share, from the $823 million, or $1.04 that it stood at a year earlier. Analysts had projected earnings of $1.14 per share. Sales hadn’t moved forward from the $9.33 billion that they stood at a year earlier and was just short of the average prediction of $9.45 billion.

Published by Fiona Gibson

Fiona is a finance graduate and an expert in analyzing market trends.