* Second-quarter revenue $10.25 bln vs est $10.19 bln
* Earnings $1.38/share vs est $1.36
* Transportation systems unit profit jumps 33 pct
(Adds analyst comment; updates shares)
July 18 Honeywell International Inc
raised the lower end of its 2014 profit forecast range and
reported a better-than-expected quarterly profit, helped by
higher sales of its turbochargers that help make automobiles
New regulations in Europe, China and the United States have
boosted demand for turbochargers as automakers aim to get more
power out of engines using less fuel.
The company, which has been controlling costs by
restructuring its businesses, said it expects margins to expand
further in the second half of 2014.
Honeywell said margins rose to 16.7 percent in the second
quarter from 16.1 percent a year earlier.
The company reported a "clean quarter, which looks
increasingly positive in a stubbornly inconsistent and sluggish
environment," JP Morgan analyst Stephen Tusa wrote in a note.
Honeywell lifted the lower end of its 2014 profit forecast
range to $5.45 per share from $5.40. It maintained the top end
Analysts on average were expecting full-year earnings of
$5.54 per share, according to Thomson Reuters I/B/E/S.
The company adjusted its full-year revenue forecast to
reflect the sale in July of its Friction Materials unit, which
makes disc brake pads and braking system components.
Honeywell said profit in its transportation systems unit,
which makes turbochargers, jumped 33 percent in the second
quarter ended June 30.
The company said on Monday it would merge the transportation
systems business, its smallest but fastest growing, with its
aerospace division to cut costs.
Net income attributable to Honeywell rose to $1.10 billion,
or $1.38 per share, from $1.02 billion, or $1.28 per share, a
Net sales rose 5.8 percent to $10.25 billion.
Analysts on average had expected earnings of $1.36 per share
on revenue of $10.19 billion.
Honeywell's shares were up about 1 percent at $95.86 on
Friday morning on the New York Stock Exchange. The stock had
gained about 4 percent so far this year through Thursday,
trailing the S&P 500 index's 6 percent rise.
(Reporting by Sagarika Jaisinghani in Bangalore; Editing by