Honeywell Tops Q1 Forecasts; Home and Building Technologies Unit Gathers Steam
Home and Building Technologies sales rose 2%, driven by demand for residential thermal solutions and thermostats, and continued strength in ADI’s global business.
MORRIS PLAINS, N.J. — Honeywell (NYSE: HON) released strong first quarter earnings data on Friday. Adjusted earnings were $1.95 a share, excluding costs related to planned spinoffs, topping expectations of $1.91.
The industrial giant posted total sales of $10.39 billion in the first quarter, up from $9.49 billion a year earlier. That beat analysts’ projections of $10 billion, according to the average of estimates compiled by Bloomberg.
During the same period last year, the firm earned $1.71 earnings per share. The business’s quarterly revenue was up 9.5% compared to the same quarter last year. Honeywell updated its full-year guidance to $7.85-$8.05 earnings per share (EPS) and its Q2 guidance to $1.97-$2.03 EPS.
In a statement, Honeywell CEO Darius Adamczyk said the company is making great progress in transforming the industrial conglomerate into a software-industrial leader.
“The preparations to spin-off our Transportation Systems and Homes businesses are well underway, and we expect those to be complete by the end of the year,” he states. “This is an exciting time to be a customer, shareowner, or employee of Honeywell, and I am confident in our ability to continue to outperform.”
Revenues for the Home and Building Technologies segment came in at $2.4 billion, an increase of 7.2% year over year. The upside was driven by solid demand for residential thermal solutions and thermostats, according to the statement. Also, continued strength in ADI globally as well as strong backlog conversion in the energy vertical within Building Solutions supported the segment’s growth.
Other segment results as reported by Honeywell:
Aerospace sales for the first quarter were up 8% on an organic basis driven by growth in commercial OE and U.S. defense, and strength in light vehicle gas and commercial vehicle turbochargers in Transportation Systems. Segment margin expanded 10 bps to 22.5%, with benefits from commercial excellence, productivity, and lower customer incentives partially offset by higher volumes of lower-margin OE shipments, inflation, and foreign exchange.
Performance Materials and Technologies sales for the first quarter were up 3% on an organic basis driven by strong short-cycle demand in thermal solutions, smart energy, maintenance services and field instrumentation in Process Solutions, and engineering and catalyst growth in UOP. Segment margin was unchanged at 20.5%, primarily driven by productivity net of inflation and commercial excellence, offset by unfavorable mix, primarily in UOP; catalyst shipment timing; and foreign exchange.
Safety and Productivity Solutions sales for the first quarter were up 6% on an organic basis driven by strong organic sales and orders growth at Intelligrated and higher volumes in Sensing. Segment margin expanded 130 bps to 16%, primarily driven by higher sales volumes and productivity net of inflation.
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