Honeywell reported a higher-than-expected profit for the first quarter on Friday and lifted its full-year earnings forecast for the second time this year, citing higher sales in its aerospace business.
Shares of the company, which makes everything from jet engines to thermostats, were up 2.6 percent at $151.92 in premarket trading.
Honeywell's aerospace business, its biggest, benefited from a rise in global travel as it sold more aircraft parts and services to the commercial airline industry.
Sales in the division, which makes parts for Boeing and Airbus planes, rose about 12 percent to $3.98 billion, while margins expanded by 10 basis points to 22.5 percent.
The company said it now expects 2018 profit of $7.85 to $8.05 per share, compared with previous forecast of $7.75-$8.00.
The company also raised its full-year sales forecast range to $42.7 billion-$43.5 billion, from $41.8 billion-$42.5 billion.
Analysts on average were expecting 2018 earnings of $7.98 per share, and revenue of $42.37 billion, according to Thomson Reuters.
Morris Plains, New Jersey-based Honeywell is also benefiting from an increase in demand from oil and gas customers in the wake of improving oil prices. The company also makes supply chain and warehouse automation equipment and software, a unit that has been gaining from a boom in ecommerce.
Sales in Honeywell's performance materials and technologies unit, which makes catalysts and adsorbents used in petroleum refining, rose about 8 percent to $2.53 billion.
Its safety and productivity solutions business, which makes supply chain and warehouse automation equipment, posted a 9 percent increase in sales to $1.45 billion.
Net income attributable to Honeywell increased to $1.44 billion, or $1.89 per share, in the quarter ended March 31 from $1.33 billion, or $1.71 per share, a year earlier. On an adjusted basis, Honeywell earned $1.95 per share.
Revenue rose to $10.39 billion from $9.49 billion.
Analysts on average had expected earnings of $1.90 per share and revenue of $10.02 billion.