NEW YORK, July 22 (Reuters) – Diversified U.S. manufacturer Honeywell International Inc (HON.N: Quote, Profile, Research, Stock Buzz) reported a higher quarterly profit, citing robust growth in the aerospace commercial aftermarket, and raised its 2011 outlook.

Its shares fell as Wall Street digested the company’s reporting on discontinued operations, lower aerospace margins, and a steep drop in Caterpillar Inc stock price after the maker of heavy machinery reported a profit short of expectations. [ID:nN1E76L04K]

The Honeywell’s shares, which dropped as much as 4.6 percent after its results were released, were down 2.1 percent in midday trade at $56.97.

“If there was a negative in the quarter it would probably be lighter margins in aerospace, but overall results were solid,” said Matt Collins, Edward Jones analyst.

“Management is pointing to slower growth in the second half of the year, and a lower tax rate may be supporting the guidance raise,” he said. “We think a pullback today would give long-term investors a nice opportunity to buy.”

Honeywell, the world’s largest maker of cockpit electronics, on Friday reported net income of $810 million, or $1.02 per share, up 43.1 percent from $566 million, or 73 cents per share, a year earlier. Analysts had expected earnings of 98 cents per share on that basis, according to Thomson Reuters I/B/E/S. It earned $1.00 per share from continuing operations.

“The global industrial economy outlook looks very good,” Dave Anderson, Honeywell’s chief financial officer, said in an interview. “We’re looking at sales growth in the second half in the low double-digits on top of 15 percent year to date,”

NEW YORK (Reuters) – Diversified U.S. manufacturer Honeywell International Inc (HON.N: Quote, Profile, Research, Stock Buzz) reported a higher quarterly profit, citing robust growth in the aerospace commercial aftermarket, and raised its 2011 outlook.

The company’s shares dipped 0.9 percent in pre-market trade to $57.66.

“If there was a negative in the quarter it would probably be lighter margins in aerospace, but overall results were solid,” said Matt Collins, Edward Jones analyst.

“Management is pointing to slower growth in the second half of the year, and a lower tax rate may be supporting the guidance raise,” he said. “We think a pullback today would give long-term investors a nice opportunity to buy.”

Honeywell, the world’s largest maker of cockpit electronics, on Friday reported net income of $810 million, or $1.02 per share, up 43.1 percent from $566 million, or 73 cents per share, a year earlier.

It earned $1.00 per share from continuing operations, topping the 98 cents expected on average by analysts, according to Thomson Reuters I/B/E/S.

“Favorable global macro trends like safety, security, energy and globalization combined with our continued investments in new technologies, high growth regions and our process initiatives will enable the company to continue to grow and outperform now and over the long-term,” Honeywell Chief Executive Dave Cote said in a statement.

NEW YORK, July 21 (Reuters) – Union Pacific Corp (UNP.N: Quote, Profile, Research, Stock Buzz), the largest publicly held U.S. railroad, reported higher quarterly earnings as freight volumes increased and it raised prices, and the company said it expected to perform even more strongly in the second half of the year.

Union Pacific said on Thursday that operating income and cash from operations rose to a record-high in the second quarter despite severe flooding in the Midwest.

“Looking to the second half of the year, we expect stronger performance despite some economic uncertainties and ongoing flood challenges,” CEO Jim Young said in a statement.

Union Pacific shares were up 4.2 percent in late morning trading on the New York Stock Exchange.

“I’m much more bullish now,” said Josh Duitz, co-portfolio manager of the Alpine Global Infrastructure Fund, who had worried about a profit miss due to flood damage. Alpine Global holds Union Pacific shares.

Shippers remain cautious as the U.S. economic recovery stumbles along, which should lead to a compressed but intensified peak season when inventory is needed, Young told analysts on a conference call.

“There’s some uncertainty, whether it’s customers or employees out here, when they read in the media that because of issues in D.C. we’re going to have a meltdown in this country, and my concern is that people stop spending,” he said.

NEW YORK, July 20 (Reuters) – U.S. railroad company CSX Corp (CSX.N: Quote, Profile, Research, Stock Buzz) raised its estimate on Wednesday for export coal shipments to a new all-time high, which it expects will help drive record 2011 results.

The company also plans to increase average headcount by about 4 percent this year to support growing demand as well as maintenance needs.

“We continue to see the economy expanding and we are making investments in capital and in people, which is how strongly we believe” in the growth picture, Chief Executive Michael Ward said in an interview.

The company reported record second-quarter results on Tuesday and maintains its early-year forecast for record full-year results. [ID:nN1E76I1KO]

CSX plans a record $2.2 billion in capital spending this year to back the projected growth.

“We will exceed both gross domestic product and industrial production,” Ward said. CSX’s volume rose about 3 percent in the quarter compared with about 1.9 percent U.S. GDP growth.

CSX, the second-largest publicly held U.S. railroad operator, boosted its forecast for coal to be moved for export to between a record 42 million and 45 million tons, from a prior estimate of a record 40 million.

NEW YORK, July 8 (Reuters) – Shares of U.S. staffing and jobs services firms slid on Friday after a weak June jobs report underscored a long and uneven economic recovery.

A meager 18,000 jobs outside the farm sector were added last month, the Labor Department said, short of the 90,000 expected, while the unemployment rate climbed to 9.2 percent. [ID:nOAT004829]

“Hope is alive and well. I don’t know that that hope is justified, however, in anything that we’ve seen in the last couple of months,” said Jonas Prising, president of Manpower Group for the Americas, a division of one of the world’s biggest employment services companies

In this “lumpy recovery,” companies have gotten more sophisticated about hiring and filling posts just in time rather than in anticipation of demand, he said.

“There is a recovery going on, yet the robustness of that recovery is still very fragile and that uncertainty will prevent employers from making hiring decisions,” said Prising.

Shares of staffing companies slid more than the broader market on Friday.

Manpower Group (MAN.N: Quote, Profile, Research, Stock Buzz) shares were down 4.7 percent to $55.86 at midday, SFN Group (SFN.N: Quote, Profile, Research, Stock Buzz) shares dropped 4 percent to $10.19 and Kelly Services (KELYA.O: Quote, Profile, Research, Stock Buzz) dropped 4.6 percent to $16.70.

NEW YORK, June 22 (Reuters) – FedEx Corp’s (FDX.N: Quote, Profile, Research, Stock Buzz) quarterly profit and outlook beat forecasts as higher shipping rates and tight cost controls more than offset a slowing economic recovery and high fuel prices.

The company will be spending more on technology and on fuel efficient aircraft, helping to increase revenue per package. Its shares gained 2.5 percent on Wednesday.

“Our actions to improve yields continue to drive revenue and earnings growth across our transportation segments,” said FedEx Chief Financial Officer Alan B. Graf.

“Even with higher planned capital spending in fiscal 2012, margins, cash flows and returns are expected to improve year over year.”

The No. 2 package delivery company has been able to pass through higher costs via fuel surcharges and still has room to raise prices without a major push-back from consumers, according to most analysts.

“Pricing and expense control” drove FedEx earnings up even as it navigated harsh weather, an economic soft-patch and supply chain disruptions caused by Japan’s earthquake and lofty fuel costs, said Peter Nesvold, a Jefferies & Co analyst.

“This company is guiding to 30 to 40 percent earnings growth in a 2.5 to 3 percent GDP backdrop,” he said. “That’s pretty amazing. You don’t hear a lot of large-cap, non-energy companies guiding to that type of growth, and if anything this company is vulnerable to higher energy prices.”

NEW YORK, June 22 (Reuters) – FedEx Corp (FDX.N: Quote, Profile, Research, Stock Buzz) likely will report strong fourth-quarter and full-year earnings growth on Wednesday, even as high fuel prices and a faltering economic recovery pose challenges.

The No. 2 package delivery company has been able to pass through higher costs via fuel surcharges and still has room to raise prices without major push-back from consumers, most analysts said.

Oil prices started to retreat from peaks late in the company’s fourth quarter and could lessen cost pressures.

Edward Jones analysts sees mid-single-digit volume growth in the company’s Express and Ground segments, which account for more than 80 percent of revenue. Analysts are keen to see, however, if consumers — amid signs the economic rebound is stalling — are opting for less expensive delivery options.

Nearly two years after the U.S. recession was declared over, financial market volatility has return on renewed talk about the potential for a double-dip recession. Analysts are eager for FedEx’s view on global demand.

Fuel expenses likely topped $1 billion for the second quarter in a row, said Edward Jones analyst Matt Collins. Fleet updates to more fuel efficient aircraft will mitigate costs but will take several years to play out, he said.

“We still see the economic recovery is continuing at a modest pace, while trade has tended to grow faster than GDP over time, a positive for FedEx,” Collins said. “We think there’s still room for FedEx to increase prices.”

NEW YORK, June 15 (Reuters) – U.S. businesses paid more to hold and move goods in 2010 and likely will again this year, but may not be able to pass higher rates to consumers now that the U.S. recovery has softened, according to a study issued on Wednesday.

Total U.S. business logistics costs jumped 10.4 percent last year to $1.2 trillion on higher post-recession freight volume, fuel surcharges and some rate hikes, according to the Council of Supply Chain Management Professionals (CSCMP) annual state of logistics report.

But nearly two years after the U.S. recession ended, the economy is growing far more haltingly than many analysts expected earlier this year.

“I do believe this is a soft patch but I’m wondering if the ground is getting too soft for us to get traction,” Rosalyn Wilson, senior business analyst at engineering consultant Delcan Corp said in an interview.

Wilson authored the study funded by Penske Logistics.

“There are a lot of very troubling signs,” she said, with high unemployment and falling home prices keeping many consumers focused on “needs instead of wants.”

Shippers “may not be able to push rate increases through that they were hoping to get; we’ve got to have the economy rolling.”

NEW YORK/BANGALORE (Reuters) – Navistar International Corp (NAV.N: Quote, Profile, Research, Stock Buzz) posted second-quarter profit below market estimates, hurt by costs related to some of its joint ventures, pushing shares down more than 5 percent at midday.

The truck and engine maker raised the lower end of its 2011 adjusted earnings outlook on growing demand for its products, but said it faces short-term supply constraints on tires, axles and other parts.

“We continue to see increasing customer acceptance of all our engine and vehicle families, confirming we have the right strategy in place and that we will deliver full-year results toward the higher side of our previous guidance,” Navistar’s chief executive, Daniel Ustian, said in a statement.

The supply shortages are due to demand overwhelming production and are not related to the March 11 earthquake in Japan, Navistar said.

Production is expected to increase in the second half with more operating days than the first half, the company told analysts on a conference call.

“A lot of the earnings are going to be derived in the back half of the year,” said Kristine Kubacki, a senior analyst at Avondale Partners. “It’s going to be a good year and I think investors have to be patient.”

Trucking companies need to renew their fleets after putting purchases on hold during the recession, and that will continue unless the economy, which is showing some signs of slowing, retrenches significantly, she said.

NEW YORK (Reuters) – A recovering U.S. economy and rising fuel prices are giving the nation’s railroads a chance to muscle in on what long has been trucker’s turf — the shipment of consumer products.

Big companies including Union Pacific Corp (UNP.N: Quote, Profile, Research, Stock Buzz) and CSX Corp (CSX.N: Quote, Profile, Research, Stock Buzz) are stepping up their investment in intermodal shipping — handling the 53-foot (16 meter) boxes that are moved expeditiously from ship to truck to train around the world, carrying goods from appliances to toys.

Taking advantage of rising fuel prices — U.S. diesel costs have surged some 32 percent over the last year — railroad executives are looking to snag more business from their trucking rivals.

That marks an expansion from railroads’ traditional strong suit, hauling bulk commodities such as coal and grain.

Their moves have caught Wall Street’s attention, with investors seeing a chance to cash in not only on the railroads themselves but on the makers of shipping containers.

“We’re believers in the intermodal story,” said Benjamin Hartford, senior research associate at Robert W. Baird. “It’s cheaper than truck and more fuel efficient, and it behooves retailers and other shippers to use domestic intermodal.”

While most trains and trucks run on the same fuel– diesel — trains are far more efficient, using a quarter the amount of fuel a truck does to haul a comparable amount of cargo.