Summary
Honeywell International Inc. reported its first-quarter 2022 financial results, showing a slight decrease in net sales to $8,376 million from $8,454 million in the prior year's comparable period. This marginal decline was attributed to lower sales volumes in the Safety and Productivity Solutions segment and unfavorable foreign currency translation, partially offset by favorable pricing strategies implemented to counter rising material and labor costs. Net income attributable to Honeywell was $1,134 million, or $1.64 per diluted share, compared to $1,427 million, or $2.03 per diluted share, in Q1 2021. The decrease in net income was largely due to higher repositioning and other charges, including reserves related to the suspension of operations in Russia and Belarus, and a prior-year gain on the sale of a business. Despite the slight revenue dip and increased charges, the company demonstrated resilience. The Aerospace segment saw a modest sales increase, driven by aftermarket demand, while Honeywell Building Technologies and Performance Materials and Technologies segments also reported sales growth. The company also highlighted its strong liquidity position, with $9.3 billion in cash and cash equivalents, and continued commitment to returning capital to shareholders through share repurchases and dividends. Management noted ongoing efforts to navigate macroeconomic and geopolitical trends, including supply chain disruptions and inflationary pressures, and remains focused on strategic investments and portfolio optimization.
Financial Highlights
55 data points| Revenue | $8.38B |
| Cost of Revenue | $5.32B |
| Gross Profit | $3.05B |
| R&D Expenses | $350.00M |
| SG&A Expenses | $1.43B |
| Operating Income | $1.77B |
| Net Income | $1.13B |
| EPS (Basic) | $1.66 |
| EPS (Diluted) | $1.64 |
| Shares Outstanding (Basic) | 684.70M |
| Shares Outstanding (Diluted) | 691.30M |
Key Highlights
- 1Net sales for the first quarter of 2022 were $8,376 million, a decrease of 1% compared to $8,454 million in Q1 2021.
- 2Net income attributable to Honeywell decreased to $1,134 million ($1.64 per diluted share) from $1,427 million ($2.03 per diluted share) in the prior year.
- 3The company incurred significant repositioning and other charges, including $183 million in reserves related to suspending operations in Russia and Belarus.
- 4The Aerospace segment showed resilience with a 4% increase in net sales, driven by strong aftermarket performance.
- 5Honeywell Building Technologies and Performance Materials and Technologies segments reported sales growth of 5% and 5% respectively, indicating strength in these areas.
- 6The Safety and Productivity Solutions segment experienced an 18% decline in net sales, impacted by lower volumes and a prior-year business divestiture.
- 7The company maintained a strong liquidity position with $9,281 million in cash and cash equivalents as of March 31, 2022.