Honeywell International Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2017; Revises Earnings Guidance for the Full Year Ending December 31, 2018
January 26, 2018 at 06:30 am
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Honeywell International Inc. reported unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2017. For the quarter, the company reported net sales of $10,843 million against $9,985 million a year ago. Income before taxes was $1,617 million against $1,432 million a year ago. Net loss was $2,399 million against income of $1,045 million a year ago. Net loss attributable to the company was $2,411 million against income of $1,034 million a year ago. Loss per share of common stock, basic and assuming dilution was $3.18 against earnings per share assuming dilution of $1.53 a year ago. Net cash provided by operating activities was $2,172 million against $2,042 million a year ago. Expenditures for property, plant and equipment was $418 million against $346 million a year ago. Free cash flow was $1,754 million against $1,696 million a year ago. Earnings per share of common stock - assuming dilution, excluding pension mark-to-market expense, debt refinancing expense, separation costs, impacts from Tax Reform, and 2016 divestitures was $1.85 against $1.74 a year ago.
For the year, the company reported net sales of $40,534 million against $39,302 million a year ago. Income before taxes was $6,902 million against $6,447 million a year ago. Net income was $1,698 million against $4,846 million a year ago. Net income attributable to the company was $1,655 million against $4,809 million a year ago. Earnings per share of common stock, assuming dilution was $2.14 against $6.20 a year ago. Net cash provided by operating activities was $5,966 million against $5,498 million a year ago. Expenditures for property, plant and equipment was $1,031 million against $1,095 million a year ago. Free cash flow was $4,935 million against $4,403 million a year ago. Earnings per share of common stock - assuming dilution, excluding pension mark-to-market expense, debt refinancing expense, separation costs, impacts from Tax Reform, and 2016 divestitures was $7.11 against $6.46 a year ago.
For the full year ending December 31, 2018, the company expects expenditures for property, plant and equipment to be $0.9 billion and free cash flow is expected to be in the range of $5.2 billion to $5.9 billion. Sales expected to be in the range of $41.8 billion to $42.5 billion. Earnings per share are expected to be in the range of $7.75 to $8.00 against previously reported guidance of $7.55 to $7.80 per share. The company now expects that its 2018 effective tax rate will be between 22% and 23%.
Honeywell International Inc. specializes in the manufacturing and marketing of industrial equipment. The group also offers maintenance, technical assistance and engineering services. Net sales break down by family of products as follows:
- aeronautical equipment (37.2%): engines, navigation hardware and software, propulsion and communication systems, satellite and space components, lighting equipment, wheels, etc. The group also offers turbochargers for motor vehicles;
- performance materials and technologies (31.4%): polymers, fibers, resins, acids, additives, catalysts, sorbents, semiconductor packaging materials, coating materials, etc.;
- building automation and control systems (16.4%): heating and ventilation control systems, fire alarms, thermostats, monitoring systems, etc.;
- security and productivity optimization solutions (15%): personal safety equipment, warning systems, gas detection systems, data collection and thermal printing computer solutions, warehouse and supply chain automation systems, data and production process management solutions, etc.
Net sales are distributed geographically as follows: the United States (57%), Europe (22%) and other (21%).
Honeywell International Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2017; Revises Earnings Guidance for the Full Year Ending December 31, 2018