What was the primary driver for the increase in net sales?

Net sales increased by 7% to $9.3 billion, primarily driven by a 5% increase in sales volume and a 1% increase in price. Acquisitions also contributed 2% to the sales growth.

How did the company's profitability change compared to the previous year?

Net income attributable to Honeywell increased by 16.7% to $823 million, or $1.04 per diluted share, compared to $705 million, or $0.88 per diluted share, in the first quarter of 2011. This improvement was due to higher segment profits across most business areas.

What is the company's current liquidity position?

Honeywell maintains a strong liquidity position. As of March 31, 2012, the company had $3.99 billion in cash and cash equivalents. Additionally, in April 2012, Honeywell entered into a $3 billion credit agreement, providing significant financial flexibility.

How did the pension plan contributions impact cash flow?

Reduced cash contributions to pension plans significantly boosted operating cash flow in the first quarter of 2012. The company contributed $256 million in Q1 2012, a substantial decrease from the prior year, and planned further contributions to improve the funded status of its plans.

HON 10-Q Quarterly Report Q1 FY2012 — Revenue, Net Income, EPS

Summary

Honeywell International Inc.'s first quarter 2012 report shows solid top-line growth with net sales increasing by 7% year-over-year to $9.3 billion, driven by organic growth across most segments. Net income attributable to Honeywell rose to $823 million, or $1.04 per diluted share, up from $705 million, or $0.88 per diluted share, in the prior year's quarter, reflecting strong operational performance. The company demonstrated improved operational efficiency, with selling, general, and administrative expenses decreasing as a percentage of sales. Despite an increase in direct material costs, gross margin saw a slight improvement. Honeywell's liquidity remains strong, with significant cash and cash equivalents and an undrawn $3 billion credit facility, positioning the company well for continued investment and potential acquisitions. The Aerospace and Automation & Control Solutions segments were particular standouts in terms of sales and profit growth.

Financial Highlights

46 data points

Beta

Revenue

$9.31B

0.3% Gross Margin

Net Income

$823.00M

0.1% Net Margin

EPS (Diluted)

$1.04

Cash & Equivalents

$3.99B

Free Cash Flow

$196.00M

Financial Statements

Beta

Revenue	$9.31B
Cost of Revenue	$6.88B
Gross Profit	$2.43B
SG&A Expenses	$1.23B
Operating Income	$823.00M
Net Income	$823.00M
EPS (Basic)	$1.06
EPS (Diluted)	$1.04
Shares Outstanding (Basic)	777.30M
Shares Outstanding (Diluted)	788.10M

Key Highlights

1Net sales grew 7% to $9.3 billion, driven by a 5% volume increase and 1% price improvement.
2Net income attributable to Honeywell increased by 16.7% to $823 million ($1.04 diluted EPS) from $705 million ($0.88 diluted EPS) in the prior year's quarter.
3Aerospace segment sales increased by 9%, with strong performance in both commercial original equipment and aftermarket segments.
4Automation and Control Solutions segment sales grew by 4%, supported by organic growth and acquisitions.
5The company's cash flow from operations significantly improved, turning positive at $196 million compared to a use of $443 million in the prior year's quarter, largely due to reduced pension contributions and working capital improvements.
6Honeywell entered into a $3 billion Amended and Restated Five Year Credit Agreement in April 2012, enhancing its liquidity and financial flexibility.

HONEYWELL INTERNATIONAL INC Quarterly Report for Q1 Ended Mar 31, 2012

Summary

Financial Highlights

Key Highlights

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