US manufacturers like Honeywell International Inc. (NYSE: HON), United Technologies Corp. (NYSE: UTX), and General Electric Co. (NYSE: GE) could be signalling a broader recovery coming in the US and global economies. Even manufacturing employment is picking up, with job growth of 1% last year and still rising this year.

Honeywell posted first-quarter EPS of $0.88, up 44% year-over-year and better than expectations of $0.82. Revenue grew 15% over the same period a year ago, to $8.9 billion compared with estimates of $8.63 billion. United Technologies reported first-quarter EPS of $1.11 on revenue of $13.34 billion, compared with EPS estimates of $1.07 and revenue estimates of $12.85 billion. General Electric posted EPS of $0.31 on revenue of $38.45 billion. Analysts had been expecting EPS of $0.28 on revenue of $34.64 billion. GE also boosted its quarterly dividend by one cent, to $0.15, its third raise in the past year.

Behind all this good news are several positive signs for continuing economic growth. First, demand for commodities, particularly metals and oil, have increased demand for equipment to explore for and produce more copper, iron ore, gold, and silver. Honeywell noted that energy-related product profits jumped 67% as high energy prices boosted sales to refiners and other sectors in the energy sector.

Demand has also increased for trucks to transport goods, providing a lift for both Honeywell and United Technologies, both of which make a variety of parts for cars and trucks.

The weaker US dollar is also helping push US manufactured goods in the export markets.

The effects of the disaster in Japan and the political turmoil in the Middle East and North Africa was minimal, but remain on the radar for the rest of this year. GE noted that it felt little impact from the Japanese nuclear crisis and expects small follow-on effects for the remainder of the year.

Honeywell raised its EPS and sales guidance for the full 2011 fiscal year. Sales are forecast to rise from previous estimates of $35-$36 billion to $36-$36.6 billion. EPS is also expected to be higher than the previous forecast of $3.60-$3.80, rising to $3.80-$3.95.

United Technologies also raised its guidance. Estimated EPS of $5.20-$5.35 was boosted to $5.25-$5.40. Revenue, previously forecast at $56-$57 billion, is now expected to be at least $57 billion.

Just after the opening bell, Honeywell’s shares are up more than 2%, to $60.02, a 52-week high. United Technologies’ shares are down fractionally at $85.88, near the top of their 52-week range of $62.88-$86.85. GE’s shares are down more than -2%, to $19.93, within a 52-week range of $13.75-$21.65.

Paul Ausick

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