MORRIS TOWNSHIP, N.J., July 23, 2013 /PRNewswire/ -- Honeywell (NYSE: HON) today announced its results for the second quarter of 2013:
Total Honeywell
($ Millions, except Earnings Per Share) | 2Q 2012 | 2Q 2013 | Change |
Sales | 9,435 | 9,693 | 3% |
Segment Margin | 15.80% | 16.10% | 30 bps |
Operating Income Margin | 13.60% | 14.30% | 70 bps |
Earnings Per Share | $1.14 | $1.28 | 12% |
Cash Flow from Operations | 973 | 1,256 | 29% |
Free Cash Flow * | 1,040 | 1,142 | 10% |
* Free Cash Flow (cash flow from operations less capital expenditures) prior to any NARCO Trust establishment
payments and cash pension contributions
"Honeywell had another good quarter and a strong first half of 2013," said Honeywell Chairman and CEO Dave Cote. "Despite operating in a slow growth macro environment, we saw good organic growth in ACS's Energy, Safety and Security business and in Turbo Technologies, both of which continue to outgrow the key end markets in which they compete. Our long-cycle businesses, including Commercial Aerospace, Process Solutions, and UOP, also continue to perform well, benefitting from favorable macro-trends, winning new contracts, and maintaining a strong backlog, which currently stands at $15.5B. We remain focused on seed planting, funding cost savings initiatives across the portfolio, and remaining flexible given the continued uncertain global economic outlook. And, as a result of our first half performance, we are raising the low-end of our 2013 guidance by $0.05 with the expectation of modestly improved organic growth and continued margin expansion in the second half outlook."
Second quarter 2013 earnings per share (EPS) reflect a 23.1% effective tax rate compared to 26.0% last year. Using the 2012 actual / 2013 expected full-year tax rate of 26.5% before any pension mark-to-market adjustment, EPS growth would have been 8%.
The company is updating its full-year 2013 guidance and now expects:
Full-Year Guidance
2013 | 2013 | Change | |
Prior Guidance | Revised Guidance | vs. 2012 | |
Sales | $38.8 - $39.3B | $38.9 - $39.3B | 3 - 4% |
Segment Margin | 15.9 - 16.2% | 16.0 - 16.2% | 40 - 60 bps |
Operating Income Margin1 | 14.3 - 14.6% | 14.5 - 14.7% | 90 - 110 bps |
Earnings Per Share1 | $4.80 - $4.95 | $4.85 - $4.95 | 8% - 11% |
Free Cash Flow2 | ~$3.7B | ~$3.7B | ~ Flat |
1. Proforma, V% / BPS exclude any pension mark-to-market adjustment
2. Free Cash Flow (cash flow from operations less capital expenditures) prior to any NARCO Trust establishment payments and cash pension contributions
Second Quarter Segment Performance
Aerospace
($ Millions) | 2Q 2012 | 2Q 2013 | % Change |
Sales | 3,027 | 2,997 | (1%) |
Segment Profit | 562 | 583 | 4% |
Segment Margin | 18.60% | 19.50% | 90 bps |
Automation and Control Solutions
($ Millions) | 2Q 2012 | 2Q 2013 | % Change |
Sales | 3,962 | 4,065 | 3% |
Segment Profit | 525 | 585 | 11% |
Segment Margin | 13.30% | 14.40% | 110 bps |
Performance Materials and Technologies
($ Millions) | 2Q 2012 | 2Q 2013 | % Change |
Sales | 1,546 | 1,684 | 9% |
Segment Profit | 350 | 320 | (9%) |
Segment Margin | 22.60% | 19.00% | (360) bps |
Transportation Systems
($ Millions) | 2Q 2012 | 2Q 2013 | % Change |
Sales | 900 | 947 | 5% |
Segment Profit | 114 | 126 | 11% |
Segment Margin | 12.70% | 13.30% | 60 bps |
Honeywell (www.honeywell.com) is a Fortune 100 diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes, and industry; turbochargers; and performance materials. Based in Morris Township, N.J., Honeywell’s shares are traded on the New York, London, and Chicago Stock Exchanges. For more news and information on Honeywell, please visit www.honeywellnow.com.
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.