Honeywell Reports Third Quarter 2012 Sales of $9.3 Billion; EPS Up 9% to $1.20 Per Share


Honeywell’s third quarter 2012 earnings highlights include:
  • 9% EPS Growth Driven By Strong Operational Performance And Sales Conversion
  • Continued Americas And High Growth Region Expansion, Europe As Expected
  • Segment Margin Increase Of 110 Bps To 15.8%, Operating Margin Up 360 Bps
  • Narrowing 2012 Proforma EPS Guidance To $4.45 – $4.50, From $4.40 – $4.55
The company reported $9.3 billion in quarterly sales, a 110 bps increase in segment margins to 15.8%, a 9% increase in EPS to $1.20, and continued strong Free Cash Flow of more than $1 billion.  Honeywell also announced that it narrowed its 2012 Proforma EPS Guidance to $4.45 – $4.50, from the previous $4.40 – $4.55.  
“Honeywell delivered 2% organic sales growth, strong sales conversion and higher earnings per share in the third quarter,” said Honeywell Chairman and CEO Dave Cote. “Our balanced mix of long- and short-cycle businesses, combined with growth in new products and continued expansion in high growth regions, offset European weakness, lower demand for products in some of our short-cycle businesses in China and the U.S., and foreign exchange headwinds in the quarter. Further, we maintained strong backlogs with new platform wins across a number of our businesses. We continue to be encouraged by the commercial aerospace outlook, increasing infrastructure spending, and oil and gas investments. These trends, combined with our great positions in good industries, leverage to other macro-trends like safety and security, energy efficiency, and clean energy generation are expected to drive our continued outperformance. Looking ahead to 2013, we are planning for a continued challenging macro environment, but expect to deliver good growth driven by new products, geographic expansion, and traction on key initiatives. Further, we will remain flexible and adhere to our disciplined focus on cost and productivity.”