UPDATE 1-Honeywell sets target of over $50 bln in sales by 2018

March 5 (Reuters) - Honeywell International Inc on Wednesday set a target of increasing overall company sales to more than $50 billion by 2018 as it spends $10 billion on acquisitions and continues to expand profit margins.

Honeywell, the U.S. diversified manufacturer of aerospace parts and climate control and security systems, also said it expects earnings to grow at a double-digit pace in percentage terms over the next five years.

Honeywell, which reported $39.1 billion in sales in 2013, unveiled the new five-year targets ahead of its investor conference in New York.

Honeywell said it wanted to spend $10 billion on acquisitions that would add about $5 billion to $8 billion in sales over the next five years. Excluding deals, it still expects sales to increase by $7 billion to $12 billion by 2018.

The company also sees segment profit margins increasing to between 18.5 percent to 20 percent over than time, up from 16.3 percent last year.

Analysts have been eager to see Honeywell's latest five-year targets after praising the company for reaching its goals with the last such plan.

Through Tuesday, Honeywell shares had risen 3.5 percent this year, better than a 1.4 percent increase for the S&P 500 index .