2 Industrial Giants Offering Economic Clues After Earnings
Honeywell International Inc. (NYSE:HON) reported net income above Wall Street’s expectations for the third quarter. Net income for the aerospace/defense products and services company rose to $862 million ($1.10 per share) vs. $598 million (76 cents per share) in the same quarter a year earlier. This marks a rise of 45% from the year earlier quarter. Revenue rose 14% to $9.3 billion from the year earlier quarter. HON beat the mean analyst estimate of 99 cents per share. Analysts were expecting revenue of $9.26 billion.
“Honeywell’s strong third quarter results are a continuation of the momentum we’ve seen across our businesses in 2011,” said Honeywell Chairman and CEO Dave Cote. “Our third quarter sales growth reflects a particularly robust Commercial Aerospace upcycle, with growth in both original equipment and aftermarket sales. It also highlights the company’s extensive innovation pipeline and increasing presence in high growth regions in all our businesses. Our long-cycle backlog continues at near record levels, with sustained strong orders growth particularly at UOP, ACS Solutions, and Commercial Aerospace. Further, our short-cycle businesses, such as Turbo Technologies, Advanced Materials, and ACS Products are performing well overall.”
Competitors to Watch: The Boeing Company (NYSE:BA), United Technologies Corp. (NYSE:UTX), Goodrich Corporation (NYSE:GR), Esterline Tech. Corp. (NYSE:ESL), Triumph Group, Inc. (NYSE:TGI), General Electric Company (NYSE:GE), Rockwell Collins, Inc. (NYSE:COL), HEICO Corporation (NYSE:HEI), and Lockheed Martin Corp. (NYSE:LMT).
Dover Corp (NYSE:DOV) reported net income above Wall Street’s expectations for the third quarter. Net income from continuing operations rose to $228.6 million ($1.21 per share) vs. $219 million ($1.16 per share) in the same quarter a year earlier. This marks a rise of 4% from the year earlier quarter. Revenue rose 22% to $2.2 billion from the year earlier quarter. DOV reported adjusted net income of $1.20 per share. By that measure, the company beat the mean estimate of $1.12 per share. Analysts were expecting revenue of $2.19 billion.
Dover’s President and Chief Executive Officer, Robert A. Livingston, said, “I am pleased Dover delivered strong third quarter performance driven by solid organic growth supported by acquisitions. Quarterly revenue, earnings, bookings and backlogall increased over the prior year. Revenue growth of 22% was largely driven by continued strength in our energy-related markets, our strong position in the handset market and improved results in the refrigeration equipment and Product ID markets.”
Competitors to Watch: Illinois Tool Works Inc. (NYSE:ITW), Danaher Corporation (NYSE:DHR), Spectrum Control, Inc. (NASDAQ:SPEC), Actuant Corporation (NYSE:ATU), SPX Corporation (NYSE:SPW), Gardner Denver, Inc. (NYSE:GDI), 3M Company (NYSE:MMM), IDEX Corporation (NYSE:IEX), The LGL Group, Inc. (AMEX:LGL), and AMETEK, Inc. (NYSE:AME).