• EPS of $0.68 Excluding Non-Cash Pension Expense, Up 21% versus Prior Year
• Organic Sales Growth Resumes in Several Short-Cycle Businesses
• Strong Operating Leverage, Margin Improvement In 3 of 4 Businesses
• Raising Full-Year EPS and Cash Flow Guidance
Honeywell announced first quarter 2010 sales were up 3% to $7.8 billion versus $7.6 billion in 2009 and earnings were $0.50 per share versus $0.54 per share in the prior year. Excluding non-cash pension expense, earnings were up 21% to $0.68 per share compared to $0.56 per share in the prior year. Cash flow from operations was $743 million versus $341 million in the first quarter of 2009 and free cash flow (cash flow from operations less capital expenditures) was up 190% to $673 million compared to $232 million last year.
“Honeywell’s first quarter performance reflects better than expected improvements in many of our end markets, coupled with strong commercial execution and disciplined cost controls,” said Honeywell Chairman and Chief Executive Officer Dave Cote. “Key short cycle businesses, such as turbochargers and general industrial products, saw good organic growth in the quarter reflecting improved market conditions. We’re building a strong backlog of orders and are encouraged by continued penetration of our new products and important contracts won during the quarter. We also continue to benefit from effective execution of our big process initiatives – Honeywell Operating System, Velocity Product Development™, and Functional Transformation – contributing to strong operating leverage and margin expansion.”
“While the timing and shape of the recovery is uncertain and we remain conservative in our planning assumptions, the outlook for Honeywell is bright,” continued Cote. “Our great positions in good industries; links to favorable global macro trends, such as safety, security, and energy efficiency; growth in emerging regions; and strong pipeline of new products and technologies are reflected in our raised outlook for the year and should drive attractive growth over the long-term.”
Honeywell now expects 2010 sales of $31.5-32.3 billion and earnings in the range of $2.30-2.45 per share versus a previous estimate of $2.20-2.40 per share. The company also now expects free cash flow of $2.8-3.1 billion (cash flow from operations of $3.5-3.8 billion) versus a previous estimate of $2.4-2.7 billion.
For more information, read the press release or listen to a replay of a Webcast of the Investor Conference Call.
