Conglomerate Honeywell (HON) - Get Report said Monday its second-quarter earnings will slightly beat Wall Street estimates.

The company expects earnings per share for the second quarter at 75 cents, up a penny from the consensus among Wall Street analysts, according to

First Call/Thomson Financial

, a research firm that tracks such statistics. It earned 66 cents per share in the same period last year.

Quarterly sales are expected to be $6.3 billion, up 6% from last year's second quarter.

The company attributed the gains to sales growth in its aerospace and home and building products, as well as cost-cutting initiatives aimed at balancing shortfalls stemmimg from higher raw material costs and higher debt service costs due to higher interest rates.

At the same time, the Morris Township, N.J.-based company announced it will merge its polymers and specialty chemicals business into one unit, which will have about $3.3 billion in annual sales and approximately 10,000 employees.

Honeywell closed Monday up 1/8 at 34 3/4. The company is scheduled to report quarterly earnings July 18.