Summary
Honeywell International Inc. (HON) reported its 2002 financial results on January 31, 2003. The company announced ongoing earnings per share (EPS) of $2.00 for the full year, aligning with prior guidance, though reported a net loss per share of $0.27 due to significant charges. Revenues for 2002 were $22.3 billion, a 6% decrease from 2001, impacted by declines in commercial aerospace and divestitures. Despite revenue challenges, Honeywell achieved a record $2.0 billion in free cash flow, a 40% increase year-over-year, driven by aggressive cost actions and productivity initiatives. The fourth quarter of 2002 saw ongoing EPS of $0.50, with a reported loss per share of $1.78. This substantial reported loss was primarily attributed to a $1.9 billion after-tax charge encompassing asbestos-related claims, asset write-downs, and repositioning costs. For 2003, Honeywell projects ongoing EPS to be in the range of $1.60 to $1.70, which includes a $0.36 negative impact from increased pension expense. The company anticipates continued strong cash generation and cost productivity, with revenues expected to be flat year-over-year at approximately $22.2 billion.
Key Highlights
- 1Full-year 2002 ongoing earnings per share (EPS) were $2.00, in line with guidance.
- 2Reported a net loss per share of $0.27 for the full year 2002, compared to a loss of $0.12 in 2001, due to significant charges.
- 3Full-year 2002 revenues were $22.3 billion, down 6% from $23.7 billion in 2001.
- 4Achieved a record $2.0 billion in free cash flow for 2002, a 40% increase from $1.4 billion in 2001.
- 5Fourth-quarter 2002 results included a substantial after-tax charge of $1.9 billion related to asbestos claims, asset write-downs, and repositioning.
- 6Provided a 2003 outlook expecting ongoing EPS between $1.60 and $1.70, impacted by a $0.36 per share increase in pension expense.
- 7Anticipates 2003 revenues to be approximately $22.2 billion, flat compared to 2002.