April 23 (Bloomberg) -- Honeywell International Inc., the maker of car turbochargers and gas detectors, said profit this year will be higher than it previously predicted because of rising demand from automakers.
Profit will be $2.30 to $2.45 a share, compared with a previous estimate of $2.20 to $2.40, the Morris Township, New Jersey-based company said today in a statement. The average estimate of 10 analysts in a Bloomberg survey was for net income of $2.40.
Chief Executive Officer David Cote said last month that orders have strengthened in the turbo technologies unit and some parts of the automation and controls division. Honeywell trimmed more than 4,400 jobs last year to adjust for reduced demand as sales dropped 15 percent.
“The ship is turning,” Nicholas Heymann, a New York-based analyst with Sterne Agee & Leach Inc., said in an interview. “You are seeing the benefit not only from auto production turning up, but you are seeing their new third-generation variable-speed turbos on almost all VW and Audi products.”
First-quarter net income fell to $386 million, or 50 cents a share, from $397 million, or 54 cents, a year earlier. The average estimate in a Bloomberg survey of 10 analysts was 47 cents a share. Sales climbed 2.7 percent to $7.78 billion.
Honeywell rose 28 cents to $47.72 at 4:15 p.m. in New York Stock Exchange composite trading. The shares have gained 22 percent this year.
Honeywell today forecast second-quarter profit of 53 cents to 57 cents a share on revenue of $7.8 billion to $8.1 billion. The average estimate of 10 analysts was for net income of 54 cents a share.
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