Mubasher: Honeywell International Inc on Friday reported better-than-expected profits for the third quarter of this year and lifted its full-year forecasts for cash flow and margins.

Tariff-related costs are expected to weigh on margins in 2019, the American multinational conglomerate company said.

The company said that sales at the aviation unit, its largest business, increased 10% to $4.03 billion in Q3-18.

Meanwhile, margins leveled up by 80 basis points to 22.1% in the three-month period ended September.

Honeywell’s results were announced a day after Cessna jet maker Textron, one of its customers, posted a 12.5% year-on-year increase in its backlog at $1.8 billion, Reuters reported.

The company has taken an advantage of a hike in global travel, resulting in an increased demand for its avionics, braking systems, and other aircraft parts.

Honeywell also benefited from a boom in e-commerce as it supplies warehouse automation equipment and software to major clients such as Amazon.com Inc, according to the London-based news agency.

Moreover, sales in safety and productivity solutions unit jumped 11% in Q3-18 to $1.58 billion, whereas margins added 150 basis points to 16.6%.

Excluding items, the company logged $2.03 per share, beating analysts’ average estimate of $1.99 per share, according to Refinitiv data.

The company’s revenue grew 6.3% to $10.76 billion in the July-September period of this year, slightly above the consensus of $10.75 billion.

Honeywell projects full-year margins to jump by 19.5% to 19-6%%, up from 19.4% to 19.6%.

Excluding the impact of divestitures, the company revealed that its full-year earnings will be in a range of $7.95 to $8.00 per share.