Financial Express (Holdings) Limited (“we”, “our”, “us” and derivatives) are committed to protecting and respecting your privacy. This Privacy Policy, together with our Terms of Use, sets out the basis on which any personal data that we collect from you, or that you provide to us, will be processed by us relating to your use of any of the below websites (“sites”).

  • FEAnalytics.com
  • FEInvest.net
  • FETransmission.com
  • Investegate.co.uk
  • Trustnet.hk
  • Trustnetoffshore.com
  • Trustnetmiddleeast.com

For the purposes of the Data Protection Act 1998, the data controller is Trustnet Limited of 2nd Floor, Golden House, 30 Great Pulteney Street, London, W1F 9NN. Our nominated representative for the purpose of this Act is Kirsty Witter.

WHAT INFORMATION DO WE COLLECT ABOUT YOU?

We collect information about you when you register with us or use any of our websites / services. Part of the registration process may include entering personal details & details of your investments.

We may collect information about your computer, including where available your operating system, browser version, domain name and IP address and details of the website that you came from, in order to improve this site.

You confirm that all information you supply is accurate.

COOKIES

In order to provide personalised services to and analyse site traffic, we may use a cookie file which is stored on your browser or the hard drive of your computer. Some of the cookies we use are essential for the sites to operate and may be used to deliver you different content, depending on the type of investor you are.

You can block cookies by activating the setting on your browser which allows you to refuse the setting of all or some cookies. However, if you use your browser settings to block all cookies (including essential cookies) you may not be able to access all or part of our sites. Unless you have adjusted your browser setting so that it will refuse cookies, our system will issue cookies as soon as you visit our sites.

HOW WE USE INFORMATION

We store and use information you provide as follows:

  • to present content effectively;
  • to provide you with information, products or services that you request from us or which may interest you, tailored to your specific interests, where you have consented to be contacted for such purposes;
  • to carry out our obligations arising from any contracts between you and us;
  • to enable you to participate in interactive features of our service, when you choose to do so;
  • to notify you about changes to our service;
  • to improve our content by tracking group information that describes the habits, usage, patterns and demographics of our customers.

We may also send you emails to provide information and keep you up to date with developments on our sites. It is our policy to have instructions on how to unsubscribe so that you will not receive any future e-mails. You can change your e-mail address at any time.

In order to provide support on the usage of our tools, our support team need access to all information provided in relation to the tool.

We will not disclose your name, email address or postal address or any data that could identify you to any third party without first receiving your permission.

However, you agree that we may disclose to any regulatory authority to which we are subject and to any investment exchange on which we may deal or to its related clearing house (or to investigators, inspectors or agents appointed by them), or to any person empowered to require such information by or under any legal enactment, any information they may request or require relating to you, or if relevant, any of your clients.

You agree that we may pass on information obtained under Money Laundering legislation as we consider necessary to comply with reporting requirements under such legislation.

ACCESS TO YOUR INFORMATION AND CORRECTION

We want to ensure that the personal information we hold about you is accurate and up to date. You may ask us to correct or remove information that is inaccurate.

You have the right under data protection legislation to access information held about you. If you wish to receive a copy of any personal information we hold, please write to us at 3rd Floor, Hollywood House, Church Street East, Woking, GU21 6HJ. Any access request may be subject to a fee of £10 to meet our costs in providing you with details of the information we hold about you.

WHERE WE STORE YOUR PERSONAL DATA

The data that we collect from you may be transferred to, and stored at, a destination outside the European Economic Area (“EEA”). It may be processed by staff operating outside the EEA who work for us or for one of our suppliers. Such staff may be engaged in, amongst other things, the provision of support services. By submitting your personal data, you agree to this transfer, storing and processing. We will take all steps reasonably necessary, including the use of encryption, to ensure that your data is treated securely and in accordance with this privacy policy.

Unfortunately, the transmission of information via the internet is not completely secure. Although we will do our best to protect your personal data, we cannot guarantee the security of your data transmitted to our sites; any transmission is at your own risk. You will not hold us responsible for any breach of security unless we have been negligent or in wilful default.

CHANGES TO OUR PRIVACY POLICY

Any changes we make to our privacy policy in the future will be posted on this page and, where appropriate, notified to you by e-mail.

OTHER WEBSITES

Our sites contain links to other websites. If you follow a link to any of these websites, please note that these websites have their own privacy policies and that we do not accept any responsibility or liability for these policies. Please check these policies before you submit any personal data to these websites.

CONTACT

If you want more information or have any questions or comments relating to our privacy policy please email publishing@financialexpress.net in the first instance.

 Information  X 
Enter a valid email address

Honeywell Intl (HON)

  Print      Mail a friend

Friday 21 April, 2017

Honeywell Intl

1st Quarter Results

Honeywell Delivers $1.71 Earnings Per Share, Up 10 Percent

- Normalized for Tax, Earnings Per Share of $1.66, Up 11 Percent Excluding Divestitures,
Exceeds High End of Guidance Range

- Reported Sales ~Flat, Organic Up Over 2 Percent

- Operating Income Margin Expansion of 100 bps, Segment Margin Expansion of 70 bps

- Free Cash Flow 6X Greater Than First-Quarter 2016

- Raising Low-End of 2017 EPS Guidance Range by 5 Cents to $6.90 - $7.10

MORRIS PLAINS, N.J., April 21, 2017 -- Honeywell (NYSE: HON) today announced financial results for the first quarter of 2017 and updated its full-year 2017 earnings guidance.

"Honeywell reported a strong start to 2017, with over 2 percent organic sales growth, 70 basis points of segment margin expansion, and free cash flow of nearly $800 million that was more than six times greater than 2016. Our strong operational performance resulted in reported earnings per share of $1.71. Normalizing for tax, earnings per share was $1.66, or 2 cents above the high-end of our first-quarter guidance and up 11 percent versus last year, excluding divestitures," said Darius Adamczyk, President and Chief Executive Officer of Honeywell.

"Each of our businesses contributed," Adamczyk said. "The commercial aftermarket within Aerospace and the global distribution business within Home and Building Technologies remained strong. In Performance Materials and Technologies, robust demand for Solstice® low-global-warming products drove double-digit organic growth in Advanced Materials, and improving conditions in the oil and gas industry bolstered ongoing strength in UOP. In Safety and Productivity Solutions, demand for warehouse solutions and industrial safety products enabled growth in the quarter."

Adamczyk concluded, "Our diversified portfolio, coupled with the investments we've made over the past several years, drove our excellent performance in the first quarter. As a result of our performance, we are raising the low end of our full-year guidance by 5 cents. We now anticipate that 2017 earnings per share will be $6.90 to $7.10, up 7 percent to 10 percent, excluding divestitures, any pension mark-to-market adjustments, and 2016 debt refinancing charges. We look forward to continuing our track record of performance and we remain focused on accelerating our organic growth, continuing to expand margins by maintaining our productivity rigor, delivering best-in-class returns as the leading software-industrial company, and more aggressively deploying capital."

Honeywell will discuss the results during its investor conference call today starting at 9:30 a.m. Eastern Daylight Time.

First Quarter Performance
Honeywell sales for the first quarter were flat on a reported basis and up over 2 percent on an organic basis. The difference between reported and organic sales is due to the impact of foreign currency translation, the 2016 spin-off of the former Resins and Chemicals business in Performance Materials and Technologies, and the 2016 divestiture of the Aerospace government services business, partially offset by acquisitions, primarily Intelligrated in Safety and Productivity Solutions. The first-quarter financial results can be found in Tables 1 and 2 below.

Aerospace sales for the first quarter were flat on an organic basis driven by growth in the Air Transport aftermarket and gas turbo penetration in Europe and China, offset by lower OE volumes in Business and General Aviation. Overall, Defense and Space sales were flat on an organic basis in the quarter. Segment margin expanded 90 bps to 22.4 percent, driven by restructuring benefits, productivity net of inflation, and commercial excellence, partially offset by lower Business and General Aviation volumes.

Home and Building Technologies sales for the first quarter were up 3 percent on an organic basis driven by strong performance in Distribution, air and water products growth in China, and the impact of new product introductions. Segment margin expanded 70 bps to 15.2 percent, driven by restructuring benefits and productivity net of inflation, partially offset by growth investments.

Performance Materials and Technologies sales for the first quarter were up 5 percent on an organic basis driven by a continued increase in Solstice® sales in Advanced Materials and strong modular gas processing growth in UOP. Segment margin expanded 260 bps to 22.8 percent, driven by productivity net of inflation, commercial excellence, and higher sales volume.

Safety and Productivity Solutions sales for the first quarter were up 3 percent on an organic basis as a result of higher volumes in safety products and workflow solutions. Segment margin improved 50 bps to 14.7 percent, primarily driven by restructuring benefits and productivity, net of inflation, partially offset by acquisition amortization and integration costs. Excluding the impact of acquisitions, segment margin expanded by more than 300 bps.

To participate in today's conference call, please dial (888) 349-9618 (domestic) or (719) 325-2385 (international) approximately ten minutes before the 9:30 a.m. EDT start. Please mention to the operator that you are dialing in for Honeywell's first quarter 2017 earnings call or provide the conference code HON1Q17. The live webcast of the investor call as well as related presentation materials will be available through the "Investor Relations" section of the company's Website (www.honeywell.com/investor). Investors can hear a replay of the conference call from 1:30 p.m. EDT, April 21, until 1:30 p.m. EDT, April 28, by dialing (888) 203-1112 (domestic) or (719) 457-0820 (international). The access code is 7717044.

TABLE 1: SUMMARY OF FINANCIAL RESULTS – TOTAL HONEYWELL

1Q 2016 1Q 2017 Change
Sales 9,522 9,492 ~Flat
Organic 2%
Segment Margin 18.1% 18.8% 70 bps
Operating Income Margin 17.8% 18.8% 100 bps
Earnings Per Share
Reported $1.56 $1.71 10%
Ex-Divestitures, Normalized for Expected Full-Year Tax Rate of 25% $1.50 $1.66 11%
Cash Flow From Operations 319 940 195%
Free Cash Flow1 125 772 518%

TABLE 2: SUMMARY OF FINANCIAL RESULTS – SEGMENTS

AEROSPACE 1Q 2016 1Q 2017 Change
Sales 3,705 3,546 (4%)
Segment Profit 798 796 ~Flat
Segment Margin 21.5% 22.4% 90 bps
HOME AND BUILDING TECHNOLOGIES
Sales 2,477 2,553 3%
Segment Profit 360 389 8%
Segment Margin 14.5% 15.2% 70 bps
PERFORMANCE MATERIALS AND TECHNOLOGIES
Sales 2,281 2,069 (9%)
Segment Profit 461 471 2%
Segment Margin 20.2% 22.8% 260 bps
SAFETY AND PRODUCTIVITY SOLUTIONS
Sales 1,059 1,324 25%
Segment Profit 150 194 29%
Segment Margin 14.2% 14.7% 50 bps
Ex-M&A 330 bps

Honeywell (http://www.honeywell.com/) is a Fortune 100 software-industrial company that delivers industry specific solutions that include aerospace and automotive products and services; control technologies for buildings, homes, and industry; and performance materials globally. Our technologies help everything from aircraft, cars, homes and buildings, manufacturing plants, supply chains, and workers become more connected to make our world smarter, safer, and more sustainable.  For more news and information on Honeywell, please visit www.honeywell.com/newsroom.

This release contains certain statements that may be deemed "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, that address activities, events or developments that we or our management intends, expects, projects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are based upon certain assumptions and assessments made by our management in light of their experience and their perception of historical trends, current economic and industry conditions, expected future developments and other factors they believe to be appropriate. The forward-looking statements included in this release are also subject to a number of material risks and uncertainties, including but not limited to economic, competitive, governmental, and technological factors affecting our operations, markets, products, services and prices. Such forward-looking statements are not guarantees of future performance, and actual results, developments and business decisions may differ from those envisaged by such forward-looking statements. We identify the principal risks and uncertainties that affect our performance in our Form 10-K and other filings with the Securities and Exchange Commission.

______________________________
1 Cash Flow From Operations Less Capital Expenditures

Contacts:
Media Investor Relations
Robert C. Ferris Mark Macaluso
(973) 455-3388 (973) 455-2222
rob.ferris@honeywell.com mark.macaluso@honeywell.com

   

Honeywell International Inc
Consolidated Statement of Operations (Unaudited)
(Dollars in millions, except per share amounts)
Three Months Ended
March 31,
2017 2016
Product sales $        7,540 $    7,619
Service sales 1,952 1,903
Net sales 9,492 9,522
Costs, expenses and other
    Cost of products sold  (A) 5,237 5,349
    Cost of services sold  (A) 1,119 1,198
6,356 6,547
    Selling, general and administrative expenses (A) 1,349 1,280
    Other (income) expense (12) (18)
    Interest and other financial charges 75 85
7,768 7,894
Income before taxes 1,724 1,628
Tax expense 392 402
Net income 1,332 1,226
Less: Net income attributable to the noncontrolling interest 6 10
Net income attributable to Honeywell $        1,326 $    1,216
Earnings per share of common stock - basic $          1.74 $      1.58
Earnings per share of common stock - assuming dilution $          1.71 $      1.56
Weighted average number of shares outstanding - basic 763.1 767.9
Weighted average number of shares outstanding - assuming dilution 773.9 779.6
(A) Cost of products and services sold and selling, general and administrative expenses include amounts for repositioning and other charges, pension and other postretirement (income) expense, and stock compensation expense.

   

Honeywell International Inc
Segment Data (Unaudited)
(Dollars in millions)
Three Months Ended
March 31,
Net Sales 2017 2016
Aerospace $        3,546 $        3,705
Home and Building Technologies 2,553 2,477
Performance Materials and Technologies 2,069 2,281
Safety and Productivity Solutions 1,324 1,059
     Total $        9,492 $        9,522
Reconciliation of Segment Profit to Income Before Taxes
Three Months Ended
March 31,
Segment Profit 2017 2016
Aerospace $           796 $           798
Home and Building Technologies 389 360
Performance Materials and Technologies                 471 461
Safety and Productivity Solutions 194 150
Corporate (61) (49)
     Total segment profit 1,789 1,720
Other income (expense) (A) 6 12
Interest and other financial charges (75) (85)
Stock compensation expense (B) (50) (53)
Pension ongoing income (B) 179 150
Other postretirement income (B) 4 9
Repositioning and other charges (B) (129) (125)
Income before taxes $        1,724 $        1,628
(A) Equity income (loss) of affiliated companies is included in segment profit.
(B) Amounts included in cost of products and services sold and selling, general
and administrative expenses.

   

Honeywell International Inc
Consolidated Balance Sheet (Unaudited)
(Dollars in millions)
March 31, December 31,
2017 2016
ASSETS
Current assets:
    Cash and cash equivalents $        7,710 $        7,843
    Short-term investments 1,885 1,520
    Accounts receivable - net 8,155 8,177
    Inventories 4,652 4,366
    Other current assets 1,178 1,152
      Total current assets 23,580 23,058
Investments and long-term receivables 533 587
Property, plant and equipment - net 5,816 5,793
Goodwill 17,827 17,707
Other intangible assets - net 4,592 4,634
Insurance recoveries for asbestos related liabilities 407 417
Deferred income taxes 337 347
Other assets 1,687 1,603
      Total assets $     54,779 $     54,146
LIABILITIES AND SHAREOWNERS' EQUITY
Current liabilities:
    Accounts payable $        5,805 $        5,690
    Commercial paper and other short-term borrowings 3,415 3,366
    Current maturities of long-term debt 1,271 227
    Accrued liabilities 6,790 7,048
      Total current liabilities 17,281 16,331
Long-term debt 11,181 12,182
Deferred income taxes 414 486
Postretirement benefit obligations other than pensions 546 473
Asbestos related liabilities 1,002 1,014
Other liabilities 3,877 4,110
Redeemable noncontrolling interest 3 3
Shareowners' equity 20,475 19,547
      Total liabilities, redeemable noncontrolling interest and shareowners' equity $     54,779 $     54,146

   

Honeywell International Inc
 Consolidated Statement of Cash Flows (Unaudited)
(Dollars in millions)
Three Months Ended
March 31,
2017 2016
Cash flows from operating activities:
    Net income $   1,332 $   1,226
    Less: Net income attributable to the noncontrolling interest 6 10
    Net income attributable to Honeywell 1,326 1,216
    Adjustments to reconcile net income attributable to Honeywell to net
    cash provided by operating activities:
        Depreciation 170 179
        Amortization 101 74
        Repositioning and other charges 129 125
        Net payments for repositioning and other charges (137) (134)
        Pension and other postretirement income (183) (159)
        Pension and other postretirement benefit payments (24) (38)
        Stock compensation expense 50 53
        Deferred income taxes (42) 48
        Other 14 88
        Changes in assets and liabilities, net of the effects of
        acquisitions and divestitures:
           Accounts receivable 23 (208)
           Inventories (286) (241)
           Other current assets (25) (54)
           Accounts payable 115 (113)
           Accrued liabilities (291) (517)
Net cash provided by operating activities 940 319
Cash flows from investing activities:
    Expenditures for property, plant and equipment (168) (194)
    Proceeds from disposals of property, plant and equipment 24 1
    Increase in investments (1,256) (836)
    Decrease in investments 825 880
    Cash paid for acquisitions, net of cash acquired - (1,056)
    Other (29) 9
Net cash used for investing activities (604) (1,196)
Cash flows from financing activities:
    Proceeds from issuance of commercial paper and other short-term borrowings 2,468 6,300
    Payments of commercial paper and other short-term borrowings (2,467) (8,750)
    Proceeds from issuance of common stock 221 105
    Proceeds from issuance of long-term debt 11 4,448
    Payments of long-term debt (5) (419)
    Repurchases of common stock (310) (1,156)
    Cash dividends paid (503) (499)
    Payments to purchase the noncontrolling interest - (238)
    Other (33) (14)
Net cash used for financing activities (618) (223)
Effect of foreign exchange rate changes on cash and cash equivalents 149 118
Net decrease in cash and cash equivalents (133) (982)
Cash and cash equivalents at beginning of period 7,843 5,455
Cash and cash equivalents at end of period $   7,710 $   4,473

   

Honeywell International Inc
Reconciliation of Cash Provided by Operating Activities to Free Cash Flow (Unaudited)
(Dollars in millions)
Three Months Ended
March 31,
2017 2016
Cash provided by operating activities $ 940 $ 319
Expenditures for property, plant and equipment                                                    (168) (194)
Free cash flow $ 772 $ 125
We define free cash flow as cash provided by operating activities less cash expenditures for property, plant and equipment.
We believe that this metric is useful to investors and management as a measure of cash generated by business operations that will be used to repay scheduled debt maturities and can be used to invest in future growth through new business development activities or acquisitions, pay dividends, repurchase stock or repay debt obligations prior to their maturities. This metric can also be used to evaluate our ability to generate cash flow from business operations and the impact that this cash flow has on our liquidity.

   

Honeywell International Inc
Reconciliation of Segment Profit to Operating Income and Calculation of Segment Profit and Operating Income Margins (Unaudited)
(Dollars in millions)
Three Months Ended
March 31,
2017 2016
Segment Profit $       1,789 $      1,720
Stock compensation expense (A)                                                        (50) (53)
Repositioning and other (A, B) (135) (131)
Pension ongoing income (A) 179 150
Other postretirement income (A) 4 9
Operating Income $       1,787 $      1,695
Segment Profit $       1,789 $      1,720
÷ Sales 9,492 9,522
Segment Profit Margin % 18.8% 18.1%
Operating Income $       1,787 $      1,695
÷ Sales 9,492 9,522
Operating Income Margin % 18.8% 17.8%
(A) Included in cost of products and services sold and selling, general and administrative expenses.
(B) Includes repositioning, asbestos, environmental expenses and equity income adjustment.
We believe these measures are useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.

   

Honeywell International Inc
Calculation of Segment Profit Margin Excluding Mergers and Acquisitions (Unaudited)
(Dollars in millions)
 Three Months Ended
March 31,
2017 2016
Safety and Productivity Solutions
Segment Profit excluding mergers and acquisitions $          190 $          149
÷ Sales excluding mergers and acquisitions $       1,080 $       1,041
Segment Profit Margin excluding mergers and acquisitions % 17.6% 14.3%
We believe these measures are useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.

   

Honeywell International Inc
Reconciliation of Organic Sales % Change (Unaudited)
 Three Months Ended
March 31,
2017
Honeywell
Reported sales % change -
Less: Foreign currency translation (1)%
Less: Acquisitions and divestitures, net (1)%
Organic sales % change 2%
Aerospace
Reported sales % change (4)%
Less: Foreign currency translation (1)%
Less: Acquisitions and divestitures, net (3)%
Organic sales % change -
Home and Building Technologies
Reported sales % change 3%
Less: Foreign currency translation (2)%
Less: Acquisitions and divestitures, net 2%
Organic sales % change 3%
Performance Materials and Technologies
Reported sales % change (9)%
Less: Foreign currency translation (1)%
Less: Acquisitions and divestitures, net (13)%
Organic sales % change 5%
Safety and Productivity Solutions
Reported sales % change 25%
Less: Foreign currency translation (1)%
Less: Acquisitions and divestitures, net 23%
Organic sales % change 3%
We believe organic sales growth is a measure that is useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.

   

Honeywell International Inc
Calculation of Earnings Per Share at 25% Tax Rate Excluding 2016 Divestitures (Unaudited)
(Dollars in millions, except per share amounts)
Three Months Ended
March 31,
2017 2016
Income before taxes $     1,724 $     1,628
Taxes at 25% 431 407
Net income at 25% tax rate $     1,293 $     1,221
Less: Net income attributable to the noncontrolling interest 6 10
Net income attributable to Honeywell at 25% tax rate $     1,287 $     1,211
Weighted average number of shares outstanding - assuming dilution 773.9 779.6
Earnings per share at 25% tax rate $       1.66 $       1.55
Earnings per share impact attributable to 2016 divestitures (1) - 0.05
Earnings per share of common stock - assuming dilution, at 25% tax rate,
excluding 2016 divestitures $       1.66 $       1.50
Earnings per share of common stock - assuming dilution $       1.71 $       1.56
Earnings per share impact of normalizing to 25% tax rate 0.05 0.01
Earnings per share impact attributable to 2016 divestitures (1) - 0.05
Earnings per share of common stock - assuming dilution, at 25% tax rate,
excluding 2016 divestitures $       1.66 $       1.50
(1) Earnings per share attributable to 2016 divestitures uses weighted average shares of 779.6 million and a blended tax rate of 36.0% for three months ended March 31, 2016.
We believe earnings per share adjusted to expected 2017 full-year tax rate of approximately 25% is a measure that is useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.

   

Honeywell International Inc
Reconciliation of Earnings Per Share to Earnings Per Share, Excluding Pension Mark-to-Market Expense, Debt Refinancing Expense and Earnings Attributable to 2016 Divestitures (Unaudited)
Twelve Months Ended
December 31,
2017E (1) 2016 (2)
Earnings per share of common stock - assuming dilution (EPS)  TBD $             6.20
Pension mark-to-market expense  TBD 0.28
Debt refinancing expense - 0.12
EPS, excluding pension mark-to-market expense and debt refinancing expense  $6.90 - $7.10 6.60
Earnings attributable to 2016 divestitures - (0.14)
EPS, excluding pension mark-to-market expense, debt refinancing expense and
earnings attributable to 2016 divestitures  $6.90 - $7.10 $             6.46
(1) Utilizes weighted average shares of approximately 774 million and an expected effective tax rate of approximately 25%
(2) Utilizes weighted average shares of 775.3 million.  Pension mark-to-market expense uses a blended tax rate of 21.3%.  Debt
      refinancing expense uses a tax rate of 26.5%.  Earnings attributable to 2016 divestitures use a blended tax rate of 33.9%.
We believe EPS, excluding pension mark-to-market expense, debt refinancing expense and earnings attributable to 2016 divestitures is a measure that is useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.  Management cannot reliably predict or estimate, without unreasonable effort, the pension mark-to-market expense as it is dependent on macroeconomic factors, such as interest rates and the return generated on invested pension plan assets.  We therefore do not include an estimate for the pension mark-to-market expense in this reconciliation.  Management is not currently forecasting an impact to earnings per share arising from a debt refinancing or divestiture transaction.  Based on economic and industry conditions, future developments and other relevant factors, these assumptions are subject to change.

a d v e r t i s e m e n t