Summary
Honeywell International Inc. reported net sales of $8,454 million for the first quarter of 2021, largely flat compared to $8,463 million in the prior year. Net income attributable to Honeywell was $1,427 million, a decrease from $1,581 million in Q1 2020, resulting in diluted earnings per share of $2.03, down from $2.21. This decrease was primarily driven by higher repositioning and other charges, lower segment profit, and increased income taxes, partially offset by a gain from the sale of the retail footwear business and higher pension income. The company saw significant sales growth in its Safety and Productivity Solutions segment, up 49%, driven by increased demand for respiratory PPE and warehouse automation. Conversely, the Aerospace segment experienced a 22% decline in sales due to reduced travel and flight hours. Honeywell Building Technologies saw a modest 6% increase, while Performance Materials and Technologies experienced a 2% decrease in sales. Operationally, the company made a strategic acquisition of Sparta Systems for $1,303 million to bolster its industrial automation and digital transformation capabilities. This acquisition is expected to strengthen the Performance Materials and Technologies segment. The company also completed the sale of its retail footwear business, recognizing a $90 million pre-tax gain. Cash flow from operations remained robust at $978 million, though investing activities used $1,304 million, largely due to the Sparta Systems acquisition.
Financial Highlights
55 data points| Revenue | $8.45B |
| Cost of Revenue | $5.71B |
| Gross Profit | $2.75B |
| SG&A Expenses | $1.24B |
| Operating Income | $1.77B |
| Net Income | $1.43B |
| EPS (Basic) | $2.05 |
| EPS (Diluted) | $2.03 |
| Shares Outstanding (Basic) | 696.20M |
| Shares Outstanding (Diluted) | 704.50M |
Key Highlights
- 1Net sales for Q1 2021 were $8,454 million, relatively flat year-over-year.
- 2Net income attributable to Honeywell decreased to $1,427 million from $1,581 million in Q1 2020, with diluted EPS falling to $2.03 from $2.21.
- 3The Safety and Productivity Solutions segment showed strong growth, with net sales up 49% year-over-year.
- 4The Aerospace segment's sales declined by 22% due to ongoing impacts of reduced global travel.
- 5Honeywell acquired Sparta Systems for $1,303 million to enhance its industrial automation and digital transformation offerings.
- 6The company reported $978 million in cash from operating activities, indicating strong cash generation.
- 7Repositioning and other charges increased significantly, contributing to the decline in net income.