Honeywell CEO Proves Loeb Wrong as Aerospace Boosts Profit

  • Company raises 2018 forecast for earnings per share and sales
  • Aerospace sales jump 12% from year earlier, leading gains
Pilot waits to take off during Honeywell International Inc.'s prototype infrared technology demonstration at Morristown Airport in Morristown, New Jersey, U.S.

Photographer: Emile Wamsteker/Bloomberg

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Honeywell International Inc.’s confidence in its aerospace business was bolstered by expanding sales of in-flight internet and cockpit controls that drove first-quarter earnings higher than analysts’ expected. The company raised its 2018 profit target.

A drag on earnings as recently as last year, the aerospace business is taking off on higher demand for commercial aircraft parts and service, increased defense spending and a nascent rebound for business aircraft. Anticipating the turnaround, Chief Executive Officer Darius Adamczyk ignored pressure last year from activist investor Daniel Loeb to sell the business.