WASHINGTON
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Second quarter earnings rose 18 percent at Honeywell International Inc. and the diversified manufacturer raised its 2008 forecast Friday as its global reach helped buffer the company from the deep woes faced by the U.S. economy.

Morristown, N.J.-based Honeywell earned $723 million, or 96 cents per share, beating Wall Street forecasts for the quarter ending June 30. It earned $611 million, or 78 cents per share, a year ago. Sales rose 13 percent to $9.67 billion from $8.54 billion a year ago.

Analysts polled by Thomson Financial were expecting earnings of 94 cents per share on $9 billion in revenue.

Company officials said they benefited from healthier overseas conditions, such as markets in Asia, that helped drive up profits in its aerospace and building control systems divisions. Seventy percent of the revenue growth in the quarter came from outside the United States, a trend that was helped by favorable currency exchange rates.

"We continue to benefit from our strong and increasing global presence, especially in emerging regions," said Dave Cote, Honeywell's CEO.

Honeywell also boosted its forecast for 2008 by 5 cents per share to a range of $3.75 to $3.85 per share. Cote said he expects the company to post double-digit earnings growth in the second half of the year, and the company forecast 95 cents per share - a 17 percent earnings increase - in the third quarter.

In a research note, Citigroup analyst Jeffrey Sprague agreed that Honeywell would likely remain strong despite a sinking economy, saying it "is in a position to grow EPS (earnings per share) in the high teens in an environment where macro EPS growth is under pressure."