Summary
Honeywell International Inc. reported net sales of $40.53 billion for the fiscal year ended December 31, 2017, a 3% increase from the prior year, driven by organic sales growth and operational improvements. Net income attributable to Honeywell was $1.66 billion, a significant decrease from $4.81 billion in 2016, largely impacted by a provisional charge of approximately $3.8 billion related to the U.S. Tax Cuts and Jobs Act. The company continued its strategy of portfolio review and capital deployment, announcing its intent to spin off its Homes and Global Distribution business and its Transportation Systems business into two separate publicly-traded companies. Key financial activities in 2017 included deploying over $6 billion in capital, with $2.9 billion allocated to share repurchases and $2.1 billion for dividends, which saw a 12% increase in the annual rate. Capital expenditures totaled over $1 billion, focused on high-return projects. The company's diversified business segments—Aerospace, Home and Building Technologies, Performance Materials and Technologies, and Safety and Productivity Solutions—all contributed to overall performance, with Aerospace and Home and Building Technologies showing sales growth.
Financial Highlights
55 data points| Revenue | $40.53B |
| Cost of Revenue | $28.14B |
| Gross Profit | $12.39B |
| R&D Expenses | $1.83B |
| SG&A Expenses | $6.09B |
| Net Income | $1.54B |
| EPS (Basic) | $2.03 |
| EPS (Diluted) | $2.00 |
| Shares Outstanding (Basic) | 762.10M |
| Shares Outstanding (Diluted) | 772.10M |
Key Highlights
- 1Net sales increased by 3% to $40.53 billion in 2017, reflecting organic growth and operational improvements.
- 2Net income attributable to Honeywell decreased significantly to $1.66 billion from $4.81 billion in 2016, primarily due to a substantial provisional charge related to the U.S. Tax Cuts and Jobs Act.
- 3The company announced its intention to spin off its Homes and Global Distribution business and Transportation Systems business into two independent public companies.
- 4Capital deployment in 2017 exceeded $6 billion, including $2.9 billion in share repurchases and $2.1 billion in dividends.
- 5The Aerospace segment's sales remained flat year-over-year at $14.78 billion, driven by growth in Commercial Aftermarket offsetting declines in Defense and Space and Commercial Original Equipment.
- 6The Safety and Productivity Solutions segment saw a notable 22% increase in sales to $5.64 billion, largely due to acquisitions.
- 7The company anticipates an effective tax rate of 22.0%-23.0% for 2018.