Summary
Honeywell International Inc. reported solid financial results for the second quarter and first half of 2013. Net sales saw a modest increase of 3% in the quarter and 1% year-to-date, demonstrating resilience across its diverse business segments. Net income attributable to Honeywell grew by approximately 13% and 15% for the three and six months ended June 30, 2013, respectively, compared to the prior year. Diluted Earnings Per Share (EPS) also showed positive growth, reflecting improved profitability and effective cost management. The company successfully integrated the acquisition of RAE Systems, Inc. and continues to advance its strategy of portfolio enhancement. While facing some headwinds like increased repositioning and other charges, Honeywell's operational performance, driven by strong segment profits particularly in Automation and Control Solutions and Aerospace, coupled with a lower effective tax rate, contributed to the overall positive financial outcome. The company maintained a strong liquidity position and continued its share repurchase program, signaling confidence in its financial health and future prospects.
Financial Highlights
50 data points| Revenue | $9.69B |
| Cost of Revenue | $7.03B |
| Gross Profit | $2.67B |
| SG&A Expenses | $1.28B |
| Net Income | $1.02B |
| EPS (Basic) | $1.30 |
| EPS (Diluted) | $1.28 |
| Shares Outstanding (Basic) | 787.60M |
| Shares Outstanding (Diluted) | 798.10M |
Key Highlights
- 1Net sales increased by 3% to $9.7 billion for the quarter ended June 30, 2013, and by 1% to $19.0 billion for the first six months.
- 2Net income attributable to Honeywell increased by 13% to $1.02 billion for the quarter and 15% to $1.99 billion for the six months, compared to the prior year.
- 3Diluted Earnings Per Share (EPS) rose to $1.28 for the quarter and $2.49 for the six months, up from $1.14 and $2.19, respectively, in the prior year.
- 4The Automation and Control Solutions segment showed significant profit growth, with segment profit up 11% for the quarter and 9% year-to-date.
- 5Aerospace segment profit increased by 4% for the quarter and 3% year-to-date, driven by commercial OE and aftermarket sales, partially offset by defense and space volume declines.
- 6The company acquired RAE Systems, Inc. for $338 million in June 2013, integrating it into the Automation and Control Solutions segment.
- 7Cash provided by operating activities increased significantly by $428 million to $1.6 billion for the six months ended June 30, 2013, driven by reduced pension contributions and higher net income.