Summary
Honeywell International Inc. reported strong third-quarter and year-to-date results for 2011. Net sales increased by 14% for the quarter and 15% year-to-date compared to the same periods in 2010. This growth was driven by a combination of volume, pricing, acquisitions, and favorable foreign exchange rates across all key business segments: Aerospace, Automation and Control Solutions, Specialty Materials, and Transportation Systems. The company also successfully divested its Consumer Products Group, contributing significantly to its financial performance and reinforcing its strategic focus on core technologies. Profitability showed a notable improvement, with segment profit up 16% for the quarter and 10% year-to-date. Net income attributable to Honeywell also saw a substantial increase, rising to $862 million ($1.10 per diluted share) in the third quarter, a significant jump from $598 million ($0.76 per diluted share) in the prior year. This performance was bolstered by strong operational execution, the positive impact of the EMS Technologies acquisition, and a favorable tax rate, partially offset by higher repositioning and other charges. The company's liquidity remains robust, supported by operating cash flows and a strong credit facility.
Financial Highlights
47 data points| Revenue | $9.30B |
| Cost of Revenue | $7.03B |
| Gross Profit | $2.27B |
| SG&A Expenses | $1.30B |
| Operating Income | $685.00M |
| Net Income | $862.00M |
| EPS (Basic) | $1.11 |
| EPS (Diluted) | $1.10 |
| Shares Outstanding (Basic) | 778.20M |
| Shares Outstanding (Diluted) | 786.90M |
Key Highlights
- 1Net sales increased by 14% year-over-year for the third quarter to $9.3 billion, and by 15% year-to-date to $27.1 billion, reflecting broad-based growth across all segments.
- 2Diluted Earnings Per Share (EPS) reached $1.10 for the third quarter of 2011, up from $0.76 in the same period last year, indicating improved profitability.
- 3The company completed the divestiture of its Consumer Products Group (CPG) for approximately $955 million, generating a pre-tax gain and aligning with its strategic focus.
- 4Acquisitions, notably EMS Technologies, Inc. for approximately $513 million, contributed positively to sales and segment profit, particularly in the Aerospace and Automation and Control Solutions segments.
- 5Repositioning and other charges amounted to $410 million for the quarter and $637 million year-to-date, reflecting ongoing restructuring and cost-saving initiatives.
- 6Honeywell made significant voluntary cash contributions totaling $1.4 billion to its U.S. pension plans in the first nine months of 2011 to improve funded status.
- 7The Aerospace segment demonstrated strong growth with an 8% increase in sales for the quarter, driven by commercial aftermarket and business/general aviation, alongside a 16% rise in segment profit.