What were the main drivers for the decline in net sales?

The primary drivers for the 15% decrease in net sales were lower sales volume across most segments, particularly in Transportation Systems and Specialty Materials. Foreign exchange rates also had a negative impact, contributing approximately 5% to the sales decline.

How did the company manage costs given the sales decline?

Honeywell implemented cost-saving initiatives across its segments, leading to a $103 million decrease in selling, general, and administrative expenses. Repositioning and other charges were also reduced to $111 million from $197 million in the prior year, contributing to margin support.

What is the outlook for the Transportation Systems segment?

The Transportation Systems segment experienced a significant downturn, with sales down 41% and a shift to a net loss. This was primarily due to challenging global automotive industry conditions, impacting both commercial and light vehicle manufacturing customers, and unfavorable foreign exchange. The company expects these challenging conditions to persist.

How is Honeywell managing its liquidity and debt?

Honeywell's primary source of liquidity remains operating cash flows. They also have access to committed credit lines and the commercial paper market. In February 2009, the company issued $1.5 billion in senior notes to repay commercial paper, demonstrating proactive debt management to ensure financial flexibility amidst economic uncertainty.

HON 10-Q Quarterly Report Q1 FY2009 — Revenue, Net Income, EPS

Summary

Honeywell International Inc. reported its first-quarter 2009 financial results, showing a significant year-over-year decline in net sales and net income. The company experienced a 15% decrease in net sales to $7.57 billion, driven primarily by volume declines across most segments, particularly Transportation Systems and Specialty Materials, with a negative impact from foreign exchange rates. Despite cost-saving initiatives and reduced repositioning charges compared to the prior year, net income attributable to Honeywell fell to $397 million, or $0.54 per diluted share, from $643 million, or $0.85 per diluted share in the first quarter of 2008. This decline was exacerbated by higher pension and postretirement expenses. While the company is actively managing its costs and liquidity, the ongoing challenging global economic environment presents headwinds, particularly in the commercial aerospace and automotive sectors. Investors should note the impact of macroeconomic conditions on sales and profitability across key business segments.

Financial Highlights

21 data points

Beta

Revenue

$7.57B

0.2% Gross Margin

Net Income

$375.00M

0.0% Net Margin

EPS (Diluted)

$0.51

Cash & Equivalents

$2.05B

Free Cash Flow

$232.00M

Financial Statements

Beta

Revenue	$7.57B
Cost of Revenue	$5.76B
Gross Profit	$1.77B
SG&A Expenses	$1.15B
Net Income	$375.00M
EPS (Basic)	$0.51
EPS (Diluted)	$0.51

Key Highlights

1Net sales decreased by 15% to $7.57 billion compared to the prior year's first quarter, reflecting broad-based weakness attributed to volume and foreign exchange impacts.
2Net income attributable to Honeywell declined significantly to $397 million ($0.54/share) from $643 million ($0.85/share) in the same period last year.
3Repositioning and other charges decreased substantially to $111 million from $197 million year-over-year, indicating cost-saving efforts.
4The Transportation Systems segment saw a dramatic 41% drop in net sales and a shift from profit to a loss, highlighting severe industry headwinds.
5The Aerospace segment's sales declined 9%, with softness in commercial markets offset by growth in defense and space.
6The company issued $1.5 billion in new senior notes in February 2009, using the proceeds to repay commercial paper, indicating proactive debt management.
7Despite lower earnings, the company maintained its dividend per share at $0.3025, consistent with the prior year's quarterly payout.

HONEYWELL INTERNATIONAL INC Quarterly Report for Q1 Ended Mar 31, 2009

Summary

Financial Highlights

Key Highlights

Frequently Asked Questions