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Honeywell Technologies reported higher profit and sales in the second quarter after a multiyear restructuring carved the industrial conglomerate into three publicly traded companies
The company on Thursday posted a profit of $5.68 billion, or $17.83 a share, for its three months ended June 30. That compares with $1.57 billion, or $4.90 a share, a year earlier.
The recent quarter benefited from a $6.63 billion gain stemming from the deconsolidation of a subsidiary.
Stripping out one-time items and including the operations of Honeywell Aerospace, which was spun off from Honeywell Technologies last month, earnings were $4.52 a share. On an adjusted basis and excluding the operations of Honeywell Aerospace, earnings were $1.95 a share.
Analysts polled by FactSet expected adjusted earnings of $1.82 a share.
Net sales including the operations of Honeywell Aerospace climbed 4.3% to $9.72 billion. Excluding the operations of Honeywell Aerospace, net sales climbed 3.4% to $5.19 billion.
Wall Street had modeled quarterly sales of $5.02 billion.
Chief Executive Vimal Kapur said the separation of Honeywell Aerospace during the recent quarter marked the beginning of a new era, with Honeywell Technologies now functioning as a pure-play automation company.
Honeywell Aerospace is scheduled to report its second-quarter results on a standalone basis on Aug. 5. Honeywell Technologies had previously spun off its advanced-materials unit, as Solstice Advanced Materials, in October.
“The results we delivered this quarter are the outcome of a year-plus long process to simplify our business, and we are already seeing the benefits of this transformation today,” Kapur said.
Looking ahead, Honeywell Technologies now expects full-year sales of $19.8 billion to $20 billion, compared with a prior outlook for $19.9 billion to $20.2 billion.
The company additionally updated its adjusted-earnings outlook to between $8.05 and $8.35 a share from the prior range of $7.90 to $8.30 a share.
Honeywell Technologies said the new outlook reflects its strong second-quarter results, as well as improved organic-growth fundamentals in its process-automation and technology business and its industrial-automation arm in the back half of the year.
Write to Connor Hart at [email protected]