Stronger Than Expected Earnings – Sales On Track, Positive Cost Actions
Cash Flow From Operations $2.6B YTD; Free Cash Flow $2.3B YTD, Up 14%
Full-Year EPS Guidance ~$2.85, Raising Free Cash Flow To ~$3.0 Billion
Honeywell today announced third quarter 2009 sales of $7.7 billion, in line with expectations, versus $9.3 billion in the third quarter last year. Earnings were $0.80 per share compared to $0.97 per share in the third quarter of 2008. Third quarter 2009 EPS included the positive impact of lower than expected tax expense in the quarter of approximately $0.04, which the company expects to be offset on a full-year basis by a higher income tax rate in the fourth quarter of 2009. Cash flow from operations was $1,148 million versus $769 million last year, and free cash flow (cash flow from operations less capital expenditures) was $1,022 million versus $556 million in the third quarter of 2008.
“Honeywell is positioning its businesses for long-term growth by continuing to invest in new products and services, geographic expansion, and key process initiatives,” said Honeywell Chairman and Chief Executive Officer Dave Cote. “We executed well in the third quarter with sales on track and better than expected earnings and free cash flow performance. We’re particularly pleased with our free cash flow performance year-to-date, which reflects our strong operating disciplines and working capital controls. These results reflect the impact of the growth investments and productivity actions we have taken in the midst of tough market conditions.”
“Our employees have responded remarkably in support of both our growth initiatives and productivity actions,” continued Cote. “Their contributions have enabled us to meet our performance objectives despite ongoing volume headwinds. By preserving our industrial base and continuing to build a robust pipeline of differentiated technologies and new products for the global marketplace, we’re confident Honeywell will emerge from this period a much stronger company, ready to grow and build on our great positions in good industries.”
Honeywell forecasts 2009 sales of approximately $31 billion, earnings per share of $2.85 and free cash flow of $3 billion.
For more information, read the press release, view the Third Quarter Investor presentation, or listen to a Webcast of the Investor conference call.
