Honeywell International Inc
) reported fourth quarter 2013 net income of $947 million or
$1.19 per share versus $251 million or 32 cents per share in the
year-ago quarter. The improvement in earnings was driven by an
increase in sales across its businesses.
Adjusted earnings stood at $1.24 per share in the reported
quarter versus $1.10 in the year-ago quarter. The adjusted
earnings beat the Zacks Consensus Estimate of $1.22 per share
For fiscal 2013, the company reported net income of $3,924
million or $4.92 per share versus $2,926 million or $3.69 per
share in the year-ago quarter.
Adjusted earnings stood at $4.97 per share for fiscal 2013 versus
$4.48 per share in the year-ago quarter. The adjusted earnings
beat the Zacks Consensus Estimate of $4.95 per share.
Revenues in fourth quarter 2013 increased 8.0% year over year to
$10,387 million. Total revenue beats the Zacks Consensus Estimate
of $10,199 million.
Revenues in fiscal 2013 increased 4.0% year over year to $39,055
million. Total revenue beats the Zacks Consensus Estimate of
Operating margins were down 50 bps year over year to 13.4% in the
reported quarter. However, operating margins expanded 60 bps year
over year to 14.2% in the current fiscal.
Aerospace segment sales increased 3% year over year in the
reported quarter to $3,099 million primarily driven by Commercial
growth and increase in Defense and Space. However, segment profit
increased 6% year over year to $636 million on the back of
commercial excellence and productivity net of inflation,
partially offset by investments for growth.
Margins rose 60 bps year over year to 20.5 %.
Automation and Control Solutions segment sales were up 10% year
over year in the reported quarter to $4,576 million. The growth
was driven primarily by new product launches, growth in energy,
safety, and security, favorable impact of acquisitions and
strength in Americas Distribution business.
Moreover, segment profit surged 8% to $698 million driven by
impact of acquisitions, higher building solutions and
distribution sales and continued investments for growth,
partially offset by volume and productivity net of inflation.
However, margins for this segment were down 20 bps year over year
Transportation Systems segment revenues of $978 million for the
quarter increased 16% year over year due to continued growth from
new platform launches, higher global turbo gas penetration and
light vehicle production, and an increase in China commercial
In addition, segment profit reported growth of 41% year over year
to $133 million mainly driven by strong Turbo material
productivity and volume leverage and operational improvements in
Margins for this segment were 13.6%, up 250 bps year over year.
Performance Materials and Technologies segment sales increased
12% during the quarter to $1.7 billion due to favorable impact of
the acquisition of Thomas Russell and improved production volumes
in Advanced Materials.
However, segment profit increased 30% to $272 million, driven by
strong volume and productivity, partially offset by continued
investments for growth. Margins in the segment increased 210 bps
year over year to 15.7%.
Cash and cash equivalents as of Dec 31, 2013 were $6.4 billion.
Long-term debt at year end was $6.8 billion.
Cash flow from operating activities improved to $4,355 billion as
of Dec 31, 2013 compared with $3,517 million in the prior year.
Honeywell provided sales guidance for 2014 in the range of
$40.3-$40.7 billion. Honeywell gave EPS guidance in the range of
$5.35 to $5.55. Operating margin is expected to be in the range
of 15.2%-15.5%. Free cash flow is expected to be in the range of
$3.8 billion-$4.0 billion.
Share prices dropped in pre-market trading as investors
probably expected a more positive outlook from the company with a
healthy beat in earnings.
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Honeywell currently has a Zacks Rank #3 (Hold). Other stocks that
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