Honeywell Second Quarter 2012 Sales Up 4% to $9.4 Billion; EPS Up 12% to $1.14 Per Share

 

Honeywell’s second quarter 2012 earnings highlights include:
  • 14% earnings growth from continuing operations driven by strong sales conversion
  • Continued robust performance in the Americas and emerging regions while Europe is performing as expected
  • Strong margin expansion with segment margin up 150 bps and operating income margin up 70 bps
The company reported a 4% increase in sales, a 150 bps increase in segment margins to 15.8%, a 14% increase in EPS from continuing operations, and continued strong Free Cash Flow of more than $1 billion.  Honeywell also announced that it raised its 2012 Proforma EPS Guidance to $4.40 – $4.55, up from the previous $4.35 – $4.55.  
 
“Honeywell had another terrific quarter, capping off a very strong first half of 2012,”said Honeywell Chairman and CEO Dave Cote.  “Despite a more challenging macro environment, particularly in Europe, Honeywell delivered strong sales conversion and double-digit earnings growth in the second quarter and executed well against our growth and productivity playbook.  Our short-cycle businesses, such as ESS and Advanced Materials, were strong in the U.S., and our long-cycle businesses continued to grow globally, benefitting from favorable macro trends and strong backlog. As such, we’re raising the low end of our 2012 guidance by $0.05, with the expectation of continued margin expansion in the second half driving our strong full-year outlook.  Given the increasingly uncertain global economic environment, we’ll remain flexible, but also continue to invest in sustainable growth through seed planting in new products and technologies, geographic expansion, and our key process initiatives, all supporting our Great Positions in Good Industries throughout the world.”