Summary
Honeywell International Inc. reported solid third-quarter results for 2016, demonstrating resilience across its diverse business segments. Net sales increased by 2% year-over-year to $9.8 billion, with overall net income attributable to Honeywell slightly declining to $1.24 billion from $1.26 billion in the prior year period. Diluted earnings per share remained stable at $1.60. The company executed a significant acquisition, Intelligrated, bolstering its Safety and Productivity Solutions segment, and continued its strategic portfolio management with the spin-off of its Resins and Chemicals business (AdvanSix). The company's financial health remains strong, supported by healthy operating cash flows and a robust balance sheet. Despite some headwinds in specific segments like Aerospace due to increased OEM incentives and lower volumes, the overall performance was bolstered by growth in Home and Building Technologies and Performance Materials and Technologies. Honeywell's strategic initiatives, including cost controls and targeted acquisitions, appear to be driving value, positioning the company for continued operational performance.
Financial Highlights
48 data points| Revenue | $9.80B |
| Cost of Revenue | $6.90B |
| Gross Profit | $2.90B |
| SG&A Expenses | $1.37B |
| Net Income | $1.24B |
| EPS (Basic) | $1.62 |
| EPS (Diluted) | $1.60 |
| Shares Outstanding (Basic) | 763.70M |
| Shares Outstanding (Diluted) | 774.40M |
Key Highlights
- 1Net sales increased by 2% to $9.8 billion for the third quarter of 2016 compared to the prior year period.
- 2Net income attributable to Honeywell was $1.24 billion for the quarter, resulting in diluted earnings per share of $1.60, flat compared to the prior year.
- 3The company completed the acquisition of Intelligrated for approximately $1.48 billion, strengthening its Safety and Productivity Solutions segment.
- 4Honeywell completed the tax-free spin-off of its Resins and Chemicals business into a standalone company, AdvanSix.
- 5Aerospace segment sales decreased by 6% due to lower volumes and the divestiture of Honeywell Technology Solutions Inc., despite growth in Commercial Aftermarket.
- 6Home and Building Technologies saw a significant sales increase of 17% driven by acquisitions and organic growth.
- 7Operating cash flow for the first nine months of 2016 was $3.46 billion, demonstrating strong cash generation.
- 8The company repurchased approximately $0.23 billion of its stock in the third quarter, with $4.3 billion remaining under its share repurchase program.