NEWTOWN, Conn. -- For the third quarter of 2018, Honeywell reported that sales rose 6 percent to $10.8 billion from $10.1 billion in the third quarter of 2017. Net income for the period was $2.4 billion compared to $1.4 billion in the prior year quarter.

"Honeywell continued to build on its strong first-half performance, delivering exceptional results across the board. Organic sales were up 7 percent driven by continued double-digit growth in our warehouse automation business; strong growth across the Aerospace business; demand for Solstice low global-warming materials and short-cycle Process Solutions software and services; and continued momentum in Homes and ADI global distribution," said Darius Adamczyk, Chairman and Chief Executive Officer of Honeywell.

"This has been an exciting year for Honeywell. The portfolio changes we announced at this time last year are nearly complete, and we recently announced the acquisition of Transnorm, a leading provider of warehouse automation solutions with a large and growing installed base and an attractive aftermarket. We are well positioned to deliver strong results in 2019 and are committed to delivering outstanding returns for our shareowners over the long term," Adamczyk concluded.

INDUSTRY SEGMENTS

Aerospace

Aerospace sales for the third quarter were up 10 percent to $4.03 billion (3Q17: $3.66 billion) on an organic basis driven by robust demand from business aviation original equipment manufacturers, continued strength in the U.S. and international defense business, growth in the air transport and business aviation aftermarket, and demand for light vehicle gas turbochargers in Transportation Systems (which was spun-off as Garrett Motion Inc. effective October 1). Segment margin expanded 80 basis points to 22.1 percent, primarily driven by higher defense and aftermarket volumes, Commercial Excellence and lower customer incentives. Profit rose to $891 million (3Q17: $780 million)

Home and Building Technologies

Home and Building Technologies sales for the third quarter were up 3 percent to $2.52 billion (3Q17: $2.48 billion) on an organic basis driven by continued strength in the ADI Global Distribution business, demand for commercial fire products and residential thermal solutions, and growth in Building Solutions. Segment margin expanded 10 basis points to 17.1 percent, primarily driven by Commercial Excellence and productivity (including benefits from previously funded and executed restructuring), largely offset by inflation and unfavorable mix. Profit rose to $430 million (3Q17: $421 million)

Performance Materials and Technologies

Performance Materials and Technologies sales for the third quarter were up 4 percent to $2.64 billion (3Q17: $2.57 billion) on an organic basis driven by demand for Solstice® low global warming products in Advanced Materials; short-cycle products, services and software demand in Process Solutions; and growth in engineering sales in UOP. Segment margin contracted, as anticipated, by 70 basis points to 21.2 percent, primarily driven by unfavorable mix in UOP. Profit fell to $560 million (3Q17: $563 million)

Safety and Productivity Solutions

Safety and Productivity Solutions sales for the third quarter were up 12 percent to $1.57 billion (3Q17: $1.41 billion) on an organic basis driven by continued double-digit sales growth in the Intelligrated business, strong demand for new mobility solutions in productivity products, and higher volumes in sensing and industrial safety. Segment margin expanded 150 basis points to 16.6 percent, primarily driven by Commercial Excellence, productivity and higher sales volumes. Profit rose to $262 million (3Q17: $213 million)

Source: Forecast International Government & Industry Group
Associated URL: http://investor.honeywell.com/file/Index?KeyFile=395405135
Author: R. Pettibone, Gov't & Industry