Honeywell International Inc. (NYSE: HON) reported a 22% jump in earnings for the second quarter of 2019 helped by margin expansion, lower costs and expenses as well as a decline in income tax expense. The results exceeded analysts’ expectations. The company narrowed its sales and earnings guidance for the full year 2019.

Net income attributable to the company climbed by 22% to $1.54 billion or $2.10 per share. Adjusted earnings increased by 9% to $2.10 per share.

Net sales dropped by 15% to $9.24 billion due to the spin-offs of the Transportation Systems business and the Homes and ADI Global Distribution business as well as the unfavorable impact of foreign currency translation. Organic sales rose by 5% led by its long-cycle businesses including US and international defense, business and general aviation, and oil and gas.

Honeywell Q2 profit jumps 22% beats estimates

Looking ahead into the full year 2019, the company narrowed its sales outlook to the range of $36.7 billion to $37.2 billion from a prior range of $36.5 billion to $37.2 billion. Earnings guidance is narrowed to the range of $7.95 to $8.15 per share from the $7.90 to $8.15 per share range.

The company narrowed its organic sales growth forecast to the range of 4% to 6% from the previous range of 3% to 6%. Operating cash flow guidance was narrowed to the range of $6.2 billion to $6.5 billion from the prior range of $6 billion to $6.5 billion. Segment margin is still predicted to be in the range of 20.7% to 21% for the full year 2019.

For the second quarter, Aerospace sales increased by 11% on an organic basis driven by double-digit growth in business aviation original equipment, continued strength in the US and international Defense and Space business, and commercial aftermarket demand across air transport and business aviation.

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Honeywell Building Technologies sales were up 5% on an organic basis driven by ongoing strength in commercial fire products and building management software, and global building solutions projects growth. Performance Materials and Technologies sales rose 4% on an organic basis driven by short-cycle demand in Process Solutions, strong licensing, engineering, and refining catalyst sales growth in UOP, and demand for Solstice low global warming products in Advanced Materials.

Safety and Productivity Solutions sales were down 4% on an organic basis due to lower sales volumes in productivity products backed by inventory destocking and fewer large project rollouts. This was partially offset by demand for gas sensing and detection, and Intelligrated aftermarket and voice solutions growth.

Shares of Honeywell ended Wednesday’s regular session down 3.52% at $168.62 on the NYSE. Following the earnings release, the stock rose 0.76% in the premarket session.

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