Honeywell announced its results for the second quarter of 2014 with sales growth of 6 percent over previous year earnings. Organic sales were up 3% due to strong execution across the portfolio and earnings per share (EPS) up 8 percent to $1.38. The company announced that it is raising its low-end proforma EPS guidance to $5.45 – $5.55 from $5.40 – $5.55.
“Honeywell had another terrific quarter and a very good first half of 2014,” said Honeywell Chairman and CEO Dave Cote. “Strong execution across our businesses and continued momentum across the portfolio helped us to deliver stronger than expected earnings. We saw 6% sales growth and margin expansion in every business as our key growth and productivity initiatives continue to make a difference. Our short-cycle businesses, particularly Energy, Safety and Security and Turbo Technologies, are benefiting from improving end markets, new product introductions, and geographic expansion, while our long-cycle businesses are growing robust backlogs supported by favorable macro trends and strong win rates. Our recently announced closing of the sale of Friction Materials was a significant step in our effort to align the Honeywell portfolio around Great Positions in Good Industries. We believe that our portfolio is well positioned for continued growth. As a result of our first half performance, we are raising the low-end of our 2014 proforma EPS guidance by $0.05 with the expectation of improved organic growth and continued margin expansion in the second half of the year.”
Read the press release.
Tags:Dave Cote, Earnings, financials
Posted on Friday, July 18, 2014
Honeywell Educators @ Space Academy (HESA) celebrated its 10th anniversary of helping math and science teachers inspire the next generation of scientists. With demand growing for STEM-related jobs and only 16 percent of high school seniors proficient in mathematics, the program – which includes two simulated Space Shuttle Missions – takes teachers beyond the classroom and encourages them to share their experiences with students.
“HESA inspired me and in turn touched my students in a unique way. Years later, I was thrilled when I learned that the young engineer at Kennedy Space Center speaking about his wonderful job was one of my former students,” said David Auerbach, HESA 2006 alumni and middle school teacher from Canaan, New Hampshire.
HESA has reached more than 2 million students since its launch in 2004, inspiring more than 2,000 teachers from 55 countries and 52 U.S. states and territories. To mark the program's decade-long run, 10 alumni were selected – one representing each year – to be the guests of honor at the 10-year celebration.
Visit the Honeywell Educators @ Space Academy Facebook page or watch this video to learn more.
Tags:Corporate Citizenship, Honeywell Hometown Solutions
Posted on Thursday, July 17, 2014
Results of an online survey conducted by Honeywell Turbo Technologies in China reveal only one-third of respondents are satisfied with their current vehicle’s fuel economy, and an overwhelming 80 percent seek fuel economy savings of at least 10 percent to be satisfied with their next vehicle purchase. Click to watch a video about the appeal of turbocharging to Chinese drivers.
“The Chinese market continues to grow more sophisticated as increasing demand for fuel economy is coupled with consumers’ appreciation for smaller cars with advanced technology,” said David Paja, Honeywell Transportation Systems’ vice president and general manager, China and India. “Honeywell is enabling this trend with the launch of more than 15 passenger vehicle turbocharger applications in the coming 15 months, for both domestic and global auto makers.”
Turbochargers enable a smaller engine to achieve the similar if not improved power outputs of larger naturally aspirated engines while being between 20 to 40 percent more fuel efficient in gasoline and diesel engines respectively. The smaller engine size also makes turbos a technology which can help auto makers meet stricter emissions standards.
Click here to read more results and survey methodology.
Posted on Tuesday, July 15, 2014
Honeywell has completed the sale of its Friction Materials (FM) business to Federal-Mogul in a cash transaction valued at approximately $155 million. The transaction does not include the Bendix® name or line of products or business in the United States. In addition, joint ventures that operate in Australia, Thailand, and Malaysia will be retained as will Honeywell’s ownership of the non-operating sites in Condé, France and Guangzhou, China.
Honeywell will also realign its Transportation Systems business segment with its Aerospace business segment to better take advantage of the engineering and technology similarities and the shared business models between these two business segments. Under the realigned segment reporting structure, the company will have three business segments: Aerospace, Automation and Control Solutions, and Performance Materials and Technologies.
“The sale of the Friction Materials business is a significant step in our effort to fully align the Honeywell portfolio around Great Positions in Good Industries,” said Honeywell Chairman and CEO Dave Cote. “Honeywell is a global technology leader and our Turbo business is one of our innovation crown jewels. Born out of our Aerospace business, the automotive turbocharger is a miniature jet engine. To leverage shared strengths and synergies, we will merge Transportation Systems, which includes our Turbo Technologies business, with Aerospace. We expect the transition to be seamless with both businesses benefitting from expanded sharing of the technical expertise that enables them to offer differentiated products to customers in their respective markets.”
Read the full press release here.
Tags:Aerospace, transportation systems
Posted on Monday, July 14, 2014
Honeywell Chairman and CEO Dave Cote appeared on CNBC Closing Bell to speak with host Kelly Evans about the need to reauthorize the Export-Import (Ex-Im) Bank.
“Every country recognizes that exports are critical for job development,” Cote explained. “Exports create jobs. It's why you find big countries like Korea, Japan, China, France, Germany – all of them are supporting exports with financing. We do the same thing with the Ex-Im Bank. We need to have this to be competitive as a country.”
Cote continued, “We can't unilaterally disarm and say, for all of their companies, ‘sure, go ahead and provide financing that helps companies export but in the U.S., we're not going to help our companies.’ It puts U.S. workers at a disadvantage. I don't think we ought to put U.S. workers in that kind of a position.”
Click here to watch a clip of the interview.
Tags:Dave Cote, video
Posted on Friday, July 11, 2014
Honeywell’s UOP green fuels process technology was selected by Petrixo Oil & Gas to produce renewable jet fuel and diesel at a new refinery to be built in Fujairah, United Arab Emirates. This will be the first commercial-scale, renewable jet fuel production facility outside of North America.
Petrixo will use UOP Renewable Jet Fuel process technology to convert approximately 500,000 metric tons per year of renewable feedstocks into renewable jet fuel and renewable diesel, also known as Honeywell Green Jet FuelTM and Honeywell Green DieselTM. The process technology is capable of converting a variety of renewable feedstocks.
Petrixo announced earlier this year that it will invest $800 million to build the new refinery, which will have a design capacity of 1 million tons per year of biofuel products.
For more information, read the press release.
Posted on Thursday, July 10, 2014