Summary
Honeywell International Inc. reported solid financial results for the third quarter and first nine months of 2014. Net sales increased by 5% year-over-year for both periods, reaching $10.1 billion and $30.0 billion, respectively. This growth was driven by organic sales increases across key segments, particularly in Automation and Control Solutions and Performance Materials and Technologies, with contributions from acquisitions also bolstering results. Profitability also showed improvement, with net income attributable to Honeywell rising to $1.167 billion ($1.47 diluted EPS) for the third quarter and $3.283 billion ($4.13 diluted EPS) for the nine months. This reflects strong operational performance, increased segment profits, and favorable impacts from pension income and other income, partially offset by higher taxes and repositioning charges. The company continues to generate substantial operating cash flow, supporting its capital allocation strategies including share repurchases and dividends.
Financial Highlights
50 data points| Revenue | $10.11B |
| Cost of Revenue | $7.13B |
| Gross Profit | $2.98B |
| SG&A Expenses | $1.34B |
| Net Income | $1.17B |
| EPS (Basic) | $1.49 |
| EPS (Diluted) | $1.47 |
| Shares Outstanding (Basic) | 784.50M |
| Shares Outstanding (Diluted) | 795.00M |
Key Highlights
- 1Net sales increased by 5% for both the third quarter and the first nine months of 2014 compared to the prior year periods, reaching $10.1 billion and $30.0 billion respectively.
- 2Diluted Earnings Per Share (EPS) saw a significant increase, rising to $1.47 for the third quarter and $4.13 for the nine months, up from $1.24 and $3.73 respectively in the prior year.
- 3Segment profit increased across all three reported segments: Aerospace (8% QTD, 7% YTD), Automation and Control Solutions (11% QTD, 12% YTD), and Performance Materials and Technologies (8% QTD, 5% YTD).
- 4Operating cash flow for the first nine months of 2014 was robust at $3.262 billion, an increase of $595 million compared to the same period in 2013.
- 5The company completed the sale of its Friction Materials business in July 2014 as part of its portfolio optimization strategy.
- 6Honeywell's balance sheet remains strong with total assets of $46.181 billion as of September 30, 2014.
- 7The company continued its share repurchase program, with $4.3 billion remaining available as of September 30, 2014, demonstrating a commitment to returning capital to shareholders.