By Utkarsh Shetti
(Reuters) -Honeywell increased its annual forecasts after defeating Wall Street expectations for the second quarter results, supported by high demand for its aerospace parts and maintenance services on Thursday.
A shortage of new jets benefited the company which provides maintenance and repair services for airlines to airlines, which have been stuck with an older and high cost fleet.
But planmemakers such as Boeing and Airbus are now trying to crawl production as supply chain facilitates ease, which increases the demand for honeywell airplane and flight control systems, among other products.
The company’s aerospace division, its largest revenue generator, posted a 10.7% increase in sales to $ 4.31 billion in the second quarter, but the margins dropped by 1.7%.
Higher costs have worked some of its margins while the general prices of American president Donald Trump on metals and trading partners threaten to disrupt a restoration chain in recovery and to push inflation.
Honeywell’s shares fell 4.7% in the morning trade.
The company said Thursday that its last income and profit forecasts explained all the world tariffs promulgated with current rates.
He had previously pointed out an exposure of $ 500 million from the samples.
Honeywell now sees 2025 profits adjusted per share between $ 10.45 and $ 10.65, against its previous forecasts from $ 10.20 to $ 10.50.
It also increased its annual revenue between $ 40.8 billion and $ 41.3 billion, from $ 39.6 billion to $ 40.5 billion earlier.
“Honeywell does his best to show a sequential force in his rupture, with an underlying improvement starting to show in number,” said Deane Dray, analyst of the RBC capital markets, in a note.
The total sales of the company increased by 8.1% to reach $ 10.35 billion, exceeding the average estimate of analysts of $ 10.07 billion, according to data compiled by LSEG.
Honeywell said an adjusted profit of $ 2.75 per share, also beating analysts’ expectations of $ 2.66.
(Report by Utkarsh Sheetti in Bengali; edition by Shinjini Ganguli)
