(AP) - Honeywell International Inc., which makes products for the aerospace, automation and transportation industries, said Thursday its second-quarter profit surged 73 percent on strong sales growth, and the company increased its full-year earnings guidance.
Second-quarter net income was $521 million, or 63 cents per share, compared with $302 million, or 36 cents per share, a year ago. The year-ago quarter included per-share items including an 18 cent charge for cash repatriation and income from discontinued operations of 3 cents.
Revenue climbed 12 percent to $7.9 billion from $7.03 billion. Aerospace sales rose 1 percent, automation and control sales were up 16 percent and specialty materials sales grew 58 percent. However, sales of transportation systems were unchanged in part because of lower consumer spending and the 2005 exit of the friction materials business in North America.
Analysts surveyed by Thomson Financial forecast a quarterly profit of 61 cents per share on sales of $7.65 billion.
''Our strong second-quarter results were driven by favorable organic growth, margin expansion and a significant increase in free cash flow,'' said Honeywell Chairman and CEO Dave Cote in a statement. Organic growth typically excludes the effects of mergers and acquisitions.
Free cash flow, or cash flow from operations less capital expenditures, nearly doubled to $786 million from $410 million in the second quarter of 2005.
Honeywell boosted its profit forecast for the year to a range of $2.48 to $2.53 per share from between $2.40 and $2.50 per share. Analysts peg the company's 2006 earnings per share at $2.49.
