Honeywell International Inc. (NYSE:HON) said it expects full year earnings to reach the upper end of its previous guidance, boosted by new products and acquisitions.
The US-based maker of thermostats, security alarms and turbochargers predicts full year earnings per share will reach about US$7.10 per share, excluding separation costs.
It also sees fourth quarter earnings at the top end of its guidance at US$1.84 per share, excluding separation costs, and raised its expectations for quarterly and full year sales growth.
Honeywell expects organic sales growth of between 7% and 8% to US$40.2bn and US$40.4bn, respectively for the fourth quarter, driven by its intelligrated and safety products businesses.
Full year sales are projected to increase 4% to US$40.6bn.
In October the company said it would spin off its homes and global distribution and transportation systems businesses, which are worth about US$7.5bn in annual revenue. It expects the deals to be completed by the end of the year.
Chief executive Darius Adamczyk said: “Honeywell expects another year of high-quality earnings growth in 2018, driven by the significant investments we have made in our portfolio, including new product introductions, capacity expansions, research and development, acquisitions, and restructuring.”
The group predicts 2018 organic sales growth of 2% to 4% and earnings growth of 6 to 10%, excluding the separation costs.
It expects to grow segment margins by 30 to 60 basis points in 2018 and is targeting free cash flow growth of more than 20%.
“In the fourth quarter, we will buy back nearly US$1.5bn worth of Honeywell shares and, in late September, we announced a 12% dividend increase,” Adamczyk added.
“M&A remains a top priority and we announced investments in two companies in the fourth quarter: SCAME Sistemi and FLUX, which expand our Connected Building and Connected Supply Chain offerings, respectively.”