Honeywell International Inc., a company that is an active participant in many industries including Defense and Aerospace, recently reported improvements in third quarter sales and earnings. Earnings for the company as a whole rose 44% as revenue increased 14% reaching $9.3 billion. Honeywell International Inc. expects to see an even more dramatic increase in earnings in the year to follow, hopefully elevating revenue to over $10 billion. A positive outlook and attitude exists within the company as stock prices rise, and full year sales are being estimated to be between $36.5 billion and $36.7 billion, higher than the initial forecast. Chief Executive David Cote stated, “While we’re not denying the potential for another recession, we think the high probability outcome is a slow-growth economic environment”. Such statement in addition to the positive trend in the company provides a comfort that Honeywell International Inc may flourish in the near future.
The aerospace sector of the company reported an 8% increase in sales resulting in profit margins increasing 18.2%. This sector consists of original and after market products. Though the aerospace region of the company is currently profiting, the defense industry is has not experienced gains. It is my opinion that we are approaching a new era in the Defense and Aerospace industry. As new technologies are created and existing technologies improve, currently used products become are becoming outdated at rates not previously experienced and the need for new products become relevant. As this occurs, major players within the industry will be forced to expand and produce more products than ever before. As long as government spending to the industry does not drastically decrease, the industry should expand.
I feel that when high-ranking employees employed by companies as large as Honeywell International Inc release statements to the public, they tend to be incredibly conservative in order to avoid the disappointment of stockholders. With positive statements being released by Chief Financial Officer, David Anderson, and Chief Executive, David Cote, I believe the company will continue to experience increases in revenues.
ReplyDeleteI believe every company on the Defense and Aerospace industry is currently relying on the same factors for bringing in revenue. Similar to the blog that I posted, Boeing is also relying on technological advancements to gain profit. Demand will increase for innovative products and Honeywell as well as Boeing will provide just that.
ReplyDelete