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

The primary drivers for the 4% increase in net sales to $9.7 billion were a 1% increase in volume and a 3% contribution from acquisitions and divestitures.

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

Profitability improved significantly. Net income attributable to Honeywell increased to $1.017 billion from $966 million, and diluted earnings per share rose to $1.28 from $1.21, reflecting strong operational performance across segments.

What is the status of the Friction Materials business divestiture?

Honeywell entered into a definitive agreement in January 2014 to sell its Friction Materials business to Federal Mogul Corporation for approximately $155 million. The transaction was expected to close in the second half of 2014, subject to regulatory approvals.

How did the company's cash flow generation perform?

Cash flow from operating activities showed a substantial increase, more than doubling to $688 million from $341 million in the prior year's period. This improvement was mainly due to favorable working capital movements and reduced pension contributions.

HON 10-Q Quarterly Report Q1 FY2014 — Revenue, Net Income, EPS

Summary

Honeywell International Inc. reported solid financial results for the first quarter ended March 31, 2014. Net sales increased by 4% year-over-year to $9.7 billion, driven by a combination of volume growth and strategic acquisitions. The company demonstrated improved profitability, with net income attributable to Honeywell rising to $1.017 billion, leading to diluted earnings per share of $1.28, up from $1.21 in the prior year period. This performance reflects the company's successful execution of its business strategies across its diverse segments. The company's strong operational execution is further evidenced by a significant increase in cash flow from operating activities, which more than doubled to $688 million. This robust cash generation supports the company's ongoing investments in growth initiatives, share repurchases, and dividend payments. Honeywell also continues to actively manage its portfolio, with a notable divestiture agreement for its Friction Materials business, aligning with its strategic focus on differentiated global technologies.

Financial Highlights

50 data points

Beta

Revenue

$9.68B

0.3% Gross Margin

Net Income

$1.02B

0.1% Net Margin

EPS (Diluted)

$1.28

Total Assets

$45.78B

Cash & Equivalents

$6.67B

Free Cash Flow

$496.00M

Financial Statements

Beta

Revenue	$9.68B
Cost of Revenue	$6.97B
Gross Profit	$2.71B
SG&A Expenses	$1.34B
Net Income	$1.02B
EPS (Basic)	$1.30
EPS (Diluted)	$1.28
Shares Outstanding (Basic)	784.90M
Shares Outstanding (Diluted)	796.40M

Key Highlights

1Net sales increased by 4% to $9.7 billion, driven by volume and acquisitions.
2Net income attributable to Honeywell rose to $1.017 billion, up from $966 million in the prior year.
3Diluted earnings per share (EPS) grew to $1.28 from $1.21.
4Cash flow from operating activities more than doubled to $688 million.
5The company announced a definitive agreement to sell its Friction Materials business, aligning with its strategic focus.
6Selling, general, and administrative expenses increased as a percentage of sales, primarily due to labor costs associated with acquisitions and investments.
7A $105 million gain on the sale of available-for-sale investments positively impacted other income.

HONEYWELL INTERNATIONAL INC Quarterly Report for Q1 Ended Mar 31, 2014

Summary

Financial Highlights

Key Highlights

Frequently Asked Questions