Honeywell International (NYSE:HON), a diversified technology and manufacturing company, reported a 40% rise in earnings in the second quarter, aided by sales growth in the aerospace commercial aftermarket, prompting a lift in its full year outlook.
The company, a maker of aerospace, building control and safety products, still narrowly missed revenue forecasts for the quarter, however.
Shares in the company fell 2.94% to $56.50 on the New York Stock Exchange Friday.
Honeywell, which competes with Boeing (NYSE:BA), posted profits of $810 million, or $1.02 per share for the three months ending June 30, compared with $566 million, or 73 cents per share, in the year ago period.
It earned $1.00 per share from continuing operations. Revenue rose 15% to $9.09 billion, excluding $234 million from the consumer products group unit the company is divesting.
Analysts expected earnings of 98 cents per share, on sales of $9.27 billion, according to Thomson Reuters.
The Morris township, New Jersey-based company said its automation and control solutions business, which serves the commercial construction industry and is the company's largest top-line contributor, saw revenue jump 20%.
Sales grew 6% in its aerospace segment due to strong increases in the commercial aftermarket and marginally higher defence and space sales, which were slightly offset by payments to business and general aviation customers for pre-production costs.
Meanwhile, sales in transportation systems climbed 26% due to foreign exchange benefits, higher passenger and commercial vehicle turbo volumes globally, new platform launches, and higher European diesel penetration.
The specialty materials unit saw sales improve 12%, resulting from improved global end markets, and new product applications in the advanced materials business.
Honeywell said it expects to see organic growth in the second half of this year.
Looking forward, the company lifted its full-year earnings guidance by five cents a share on both ends to a a range of $3.85 to $4.00. The company also expects sales between $36.1 and $36.7 billion, versus its previous forecast of $36 and $36.7 billion.
"Favourable global macro trends like safety, security, energy, and globalization combined with our continued investments in new technologies, high growth regions, and our process initiatives will enable the company to continue to grow and outperform now and over the long-term," CEO Dave Cote said in a statement.