Summary
Honeywell International Inc. reported a 5% decrease in net sales for both the three and six-month periods ending June 30, 2015, compared to the prior year. This decline was primarily attributed to unfavorable foreign exchange rates and the divestiture of the Friction Materials business, partially offset by organic growth. Despite the sales dip, the company demonstrated improved profitability due to cost management initiatives, including lower cost of goods sold and streamlined selling, general, and administrative expenses. Net income attributable to Honeywell increased to $1.194 billion for the quarter and $2.310 billion for the year-to-date period, leading to a rise in diluted earnings per share to $1.51 and $2.91, respectively. The company also reported strong operating cash flow, although it was lower than the previous year due to changes in working capital and increased repositioning payments.
Financial Highlights
48 data points| Revenue | $9.78B |
| Cost of Revenue | $6.81B |
| Gross Profit | $2.96B |
| SG&A Expenses | $1.24B |
| Net Income | $1.19B |
| EPS (Basic) | $1.52 |
| EPS (Diluted) | $1.51 |
| Shares Outstanding (Basic) | 783.30M |
| Shares Outstanding (Diluted) | 792.90M |
Key Highlights
- 1Net sales decreased by 5% to $9.775 billion for the second quarter and by 5% to $18.988 billion for the first six months of 2015, largely due to foreign exchange impacts and divestitures.
- 2Gross margin percentage improved to 30.3% in Q2 2015 and 30.6% year-to-date, reflecting cost efficiencies and productivity gains.
- 3Net income attributable to Honeywell rose to $1.194 billion in Q2 2015 ($1.51 EPS) and $2.310 billion year-to-date ($2.91 EPS), indicating effective cost control and operational improvements.
- 4Operating cash flow for the first six months was $1.829 billion, a decrease from the prior year, primarily due to changes in accrued liabilities and increased repositioning payments.
- 5The Aerospace segment saw a 5% sales decline but a 2% increase in segment profit for the quarter, driven by organic growth in commercial segments and productivity improvements.
- 6Automation and Control Solutions (ACS) reported a 1% sales decrease but a 6% increase in segment profit for the quarter, benefiting from organic sales growth and productivity initiatives.
- 7Performance Materials and Technologies (PMT) experienced a 9% sales decline but a 7% increase in segment profit for the quarter, driven by price and productivity improvements despite project delays.