Honeywell Beats as Sales Rise - Analyst Blog
27 Janvier 2012 - 1:17PM
Zacks
Honeywell International Inc.’s (HON) reported
fourth-quarter 2011 earnings results before the market opened
today. Pro forma earnings per share were $1.05 in the reported
quarter, above the Zacks Consensus Estimate of $1.04.
Mark-to-market pension expense in the quarter was $1.45 per
share, including which the company incurred a loss per share of 40
cents.
For full year 2011, earnings per share from continuing
operations were $4.05, above the Zacks Consensus Estimate of $4.03.
Mark-to-market pension expense in the year was $1.44 per share,
including which earnings per share were $2.61.
Total Revenue
Total revenue was $9.5 billion, an increase of 8% year over
year. Organically, total revenue was up 7% year over year, led by
strong performance in most of the markets. Geographical expansions
and new product launches were contributing factors to the
upside.
For full year 2011, sales amounted to $36.5 billion, an increase
of 13% year over year.
The company reported a revenue increase in all its segments for
the reported quarter.
Segment Performance
Aerospace segment sales climbed 8% year over
year to $3.0 billion, led by increased Commercial original
equipment sales and raised aftermarket volumes. This increase was
partially offset by lower military and government services
sales.
Automation and Control Solutions segment sales
increased 4% year over year to $4.1 billion, led by new product
launches, expansion in emerging markets and favorable macro
trends.
Transportation System revenue of $944 million
for the quarter, rose 10% year over year as a result of increased
light vehicle Turbo volumes and new launches. This increase was
partly masked by unfavorable foreign exchange impact.
Performance Materials and Technologies sales
increased 25% during the quarter to $1.4 billion, led by good sales
from UOP and development of catalysts and new product applications
in Advanced Materials. The segment revenue was partially offset by
inflation and unfavorable impact from acquisition of the phenol
plant.
Income
The company incurred total selling, general & administrative
expense of approximately $1.6 billion in the quarter versus
approximately $1.3 billion in the fourth quarter of 2010.
Aerospace operating margin expanded 40 bps to 18.8% during the
quarter; Automation and Control Solutions climbed 130 bps to 14.4%;
Transportation System increased 40 bps to 12.4% and Performance
Materials and Technologies rose 80 bps to 15.6%.
Balance Sheet
Cash and cash equivalents were $3.7 billion with long-term debt
of $6.9 billion and shareowners’ equity of $10.9 billion.
Free cash flow in the quarter was $1.4 million, excluding
pension contributions of $250 million.
Moving Ahead
For further expansion, the company is focused on growth factors,
such as investments in new products, technology demarcation,
expansion in the emerging markets and initiatives in key processes.
Honeywell’s short-cycle businesses as well as its commercial
aerospace spares and residential and commercial retrofit businesses
are performing impressively and are expected to support the
company’s future growth outlook.
However, a change in the U.S. government’s defense and aerospace
funding could adversely impact sales of Aerospace’s defense and
space-related products and services.
Based in Morris Township, N.J., Honeywell International Inc. is
a Fortune 100 company providing technical and manufacturing support
to customers worldwide with aerospace products and services;
control technologies for buildings, homes and industry; automotive
products; turbochargers; and specialty materials. The major
competitors of Honeywell are BorgWarner Inc.
(BWA), United Technologies Corp. (UTX) and
Johnson Controls Inc. (JCI).
We currently maintain our Outperform rating on Honeywell,
corresponding with a Zacks #2 Rank (Buy recommendation) over the
next one to three months.
BORG WARNER INC (BWA): Free Stock Analysis Report
HONEYWELL INTL (HON): Free Stock Analysis Report
JOHNSON CONTROL (JCI): Free Stock Analysis Report
UTD TECHS CORP (UTX): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
BorgWarner (NYSE:BWA)
Graphique Historique de l'Action
De Août 2024 à Sept 2024
BorgWarner (NYSE:BWA)
Graphique Historique de l'Action
De Sept 2023 à Sept 2024