BOSTON/NEW YORK (Reuters) - Manufacturers Honeywell International Inc
Honeywell, the world's largest maker of cockpit electronics, boosted its profit forecast for the rest of 2010, saying it expected to see organic sales -- excluding the effect of acquisitions and currency fluctuations -- to accelerate through the second half.
Ingersoll, which makes cooling systems for homes and businesses, also raised its full-year earnings view.
"While we remain cautious in light of continued mixed economic signals. it appears that the back half of the year is shaping up for good organic growth in each of our businesses," said Dave Anderson, chief financial officer at Honeywell, on a conference call with analysts.
"Emerging markets will be a bright spot, fueling continued double-digit growth," he said.
The company, which also produces systems to control the climate and security of large buildings said it looks for full-year earnings of $2.40 to $2.50 per share.
That marks the second time it has raised its full-year forecast since first issuing it, though the $2.50 high end of the range now matches what analysts had been expecting before the Honeywell caught Wall Street off-guard with a lower than expected forecast back in December 2009.
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The reports continue a string of better-than-expected earnings from the sector. Caterpillar Inc
HONEYWELL SEES CONSTRUCTION GROWTH
Demand for equipment for commercial buildings strengthened in the quarter, more than economic data would suggest, Honeywell's Anderson said.
"While external indicators continue to show softness in commercial construction end markets, we're actually seeing that sector held up well, with moderate growth," Anderson said.
The Architecture Billings Index, a leading indicator of U.S. construction spending, inched up in June though it still forecasts a decline in activity over the next six to nine months, according to data released on Wednesday.
Profit at Honeywell's automation and control systems, which sells products including thermostats and security systems, was up 16 percent in the quarter.
Ingersoll, which also makes security systems and golf carts, said orders rose 10 percent in the quarter, boosted by demand in Asia for commercial cooling systems.
"We are seeing continuing improvement in several of our key markets," said Michael Lamach, who took over from Herb Henkel this year as chief executive officer and, last month, as chairman.
While construction activity in Asia is sparking demand, Lamach warned that demand at home is less robust.
"We expect challenging U.S. and European nonresidential construction markets to continue to dampen results" for the rest of the year, Lamach said.
A weak spot for Ingersoll was residential heating and cooling systems. While sales of these systems were up 14 percent in the quarter, new bookings rose a more modest 7 percent, implying a slowdown ahead, analysts said.
Dover, which makes products ranging from supermarket equipment to technology for energy companies, also posted results that topped Wall Street expectations, citing broadly higher demand for industrial equipment.
Honeywell shares were up 1 percent at $43.11, Ingersoll was down 1 percent at $36.33 and Dover rose 4 percent to $47.87 on the New York Stock Exchange.
(Reporting by Scott Malone and Nick Zieminski; Editing by Derek Caney)
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