HONEYWELL: ACTIVITIES REPORT 3RD QUARTER 2014
HONEYWELL 2014, THIRD TRIMESTER RESULTS
According to Mr DAVE COTE, HONEYWELL president and CEO, organic sales grew, leading to a double-digit increase of profit. “The further integration and the maturation of the operating system of HONEYWELL in our global portfolio contributed strongly to sales promotion, of the margin, revenues and higher cash flow and other remaining possibilities. We are committed to the continuity of our investments in planting seeds and the strengthening of our positions in the best industries and continuous improvement of processes to limit the current world macro-economic uncertainties”.
Mr Cote continued “We develop our low-end perspective 2014 mentioned in the pro forma EPS of 0.05$ from 5.50 to 5.55$ (an increase of 11 to 12%). This leads to an initial high range direction we provided there nearly a year ago. In the perspective for 2015, we have once again planned a slow macro environmental growth but continuing to develop a strong profit growth. We are convinced that HONEYWELL should now continue its performance and focus on the new products and the technologies. This penetration towards high-growth regions supports the implementation of our key initiatives for long- term process”.
COMPANY ORIENTATION UPDATE
The third trimester of organic sales increased by 3% compared to the whole portfolio. The published data were nevertheless flat due to the sale of friction materials. Commercial OE increased 5 %, reflecting continued strong accumulation of the OE rates and an increase in the Business and General Aviation (BGA) by the delivery of engines. The sales increase in AFTERMARKET business caused a 2% slowdown in growth of AIR TRANSPORT AND REGIONAL (ATR). This situation partially compensated for the reduction in sales RMU (renovation modification and upgrade) in BGA and the lower activities of repair and revision. Sales in the field of defence and space grew by 3 % due to strong growth and the stabilization of turnover of the US government. Sales in transport system fell (10%), mainly due to the sale of friction materials. The organic sale increased by 4 % due to the launch of new platforms. A higher penetration of turbo gas in world scale and the increase of the demand for commercial vehicles in EUROPE are partly offset by the moderation in light vehicle production in the EUROPEAN UNION.
The sectorial profit increased by 8 % and the margins of the sector widened of 150 basis points in 20.3%. This figure is taken from the net productivity of inflation, business excellence and the favourable impact of the sale of friction materials.
Sales increase by 9%, including 4 % organic growth compared to the third quarter of 2013. This increase is mainly caused by the favourable impact of the acquisition of INTERMEC and strong organic growth on energy, security and safety (ESS) particularly in SCANNING & MOBILITY, the industrial safety and the safety on the fire. Building solutions and distribution (BSD) are marked by continued strength in sales in the UNITED STATES.
The sectorial profit increased by 11% and the sector margins widened of 40 points due to higher volumes, commercial excellence. The net productivity of inflation reached a rate of 15.9% was partially offset by the dilutive impact of the acquisition of INTERMEC.
Sales increased by 7% on the organic base counted and reported in the third quarter of 2013. This growth follows upon the conducts by UOP of the gas catalyst, the growth of treatments, an acceleration of the growth of sales in PROCESS SOLUTIONS a rise in sales of advanced materials, especially fluorine products.
The sectorial profit increased by 8 % and the margins of the segment increased by 20 points. This increase was driven by higher volume and the net productivity of the inflation. It is partly offset by the price / materials, contrary to resins and chemicals which recorded a growth of the investments.