Honeywell raises full-year outlook as profit beats on warehouse equipment demand


Adds full-year outlook, background

April 23 (Reuters) - Honeywell International HON.N raised its full-year sales and profit outlook as it posted a better-than-expected quarterly profit on Friday, helped by robust demand for its warehouse automation equipment from customers including Amazon.com Inc AMZN.O.

A boom in online shopping during the COVID-19 pandemic has boosted sales of Honeywell's warehouse automation unit, part of its safety and productivity solutions business.

Sales in the business jumped 49% to $2.12 billion in the first quarter ended March 31, beating analysts' average estimate of $1.79 billion, according to IBES data from Refinitiv.

Honeywell also makes aircraft parts for planes manufactured by Boeing Co BA.N and Canada's Bombardier Inc BBDb.TO.

Analysts expect to see a recovery in the company's aircraft spare parts business later this year, as rising vaccination rates drive air traffic.

Honeywell said it now expects full-year sales between $34 billion and $34.8 billion, up form its prior forecast of $33.4 billion to $34.4 billion.

Net income attributable to Honeywell fell to $1.43 billion, or $2.03 per share, in the first quarter ended, from $1.58 billion, or $2.21 per share, a year earlier.

On an adjusted basis, Honeywell earned $1.92 per share in the quarter, beating Wall Street's estimate of $1.80 per share.

Net sales fell to $8.45 billion from $8.46 billion.

(Reporting by Shreyasee Raj in Bengaluru; Editing by Vinay Dwivedi)


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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