Summary
Honeywell International Inc. (HON) reported its third-quarter and year-to-date results for the period ending September 30, 2013. The company demonstrated a solid increase in net sales, rising by 3% for the quarter and 2% year-to-date compared to the prior year. This growth was driven by a combination of price increases and contributions from recent acquisitions, notably RAE Systems and Intermec, which were integrated into the Automation and Control Solutions segment. Net income attributable to Honeywell also saw a healthy increase, with diluted earnings per share (EPS) rising to $1.24 for the quarter and $3.73 year-to-date, up from $1.20 and $3.38 respectively in the prior year. The company's performance was supported by strong results across most segments, particularly Automation and Control Solutions and Performance Materials and Technologies, both of which experienced significant profit growth. While the Aerospace segment saw a slight dip in sales due to defense sector slowdowns, its segment profit still managed to grow. The Transportation Systems segment also showed robust growth in both sales and profit. Honeywell's financial health remains strong, supported by increased operating cash flows and strategic capital allocation, including significant investments in acquisitions and ongoing share repurchases.
Financial Highlights
50 data points| Revenue | $9.65B |
| Cost of Revenue | $6.94B |
| Gross Profit | $2.71B |
| SG&A Expenses | $1.24B |
| Net Income | $990.00M |
| EPS (Basic) | $1.26 |
| EPS (Diluted) | $1.24 |
| Shares Outstanding (Basic) | 786.30M |
| Shares Outstanding (Diluted) | 797.10M |
Key Highlights
- 1Net sales increased by 3% to $9.6 billion for the third quarter and 2% to $28.7 billion for the first nine months of 2013 compared to the prior year.
- 2Diluted earnings per share (EPS) increased to $1.24 in the third quarter and $3.73 year-to-date, up from $1.20 and $3.38 respectively in the comparable periods of 2012.
- 3The company completed two significant acquisitions: RAE Systems for $338 million and Intermec for $607 million, both integrated into the Automation and Control Solutions segment.
- 4Segment profit showed strong growth, particularly in Automation and Control Solutions (up 11% in Q3) and Performance Materials and Technologies (up 11% in Q3).
- 5Operating cash flow increased significantly to $2.67 billion for the nine months ended September 30, 2013, up from $2.17 billion in the prior year, largely due to reduced pension contributions.
- 6The company repurchased approximately $167 million of its stock in the third quarter, with $829 million remaining under its share repurchase program.
- 7The NARCO Plan of Reorganization became fully effective in April 2013, establishing a trust for the evaluation and resolution of asbestos claims, with Honeywell obligated to fund claims subject to annual caps.