Morris Township, NJ, Apr. 17—Honeywell’s first quarter earnings per share before the cumulative effect of the required implementation of Statement of Financial Accounting Standards No. 143 (SFAS 143) were $0.32 per share, in line with prior earnings guidance.
Earnings per share after the required implementation of SFAS 143 were $0.30, compared with $0.46 for the same period a year ago.
First quarter revenues were $5.4 billion, up 4% compared with the first quarter last year due to favorable foreign exchange resulting from the effect of a weaker U.S. dollar. Organic growth was flat and the impact of acquisitions was offset by divestitures. Year over year, revenues increased in three of Honeywell's four operating segments as transportation and power systems (TPS) rose 16%, automation and control solutions was up 7%, and specialty materials gained 3%. Revenues in aerospace declined 1%.
Free cash flow in the quarter was $368 million, up 43% compared with $258 million in the same period last year. Cash flow from operations was $473 million, up 17% compared with $405 million in the year ago period.
In the first quarter, segment profit margins were 8.4% compared with 10.8% in the same period last year. The increase in pension costs accounted for 1.7% of the margin decline, while the remainder was due to lower volume in higher margin businesses and spending on growth programs, product launches and facility relocations.
"We also entered into definitive agreements to sell our engineering plastics business to BASF for $90 million in cash plus BASF's nylon fibers business,” said Honeywell chairman and CEO David Cote. “Completion of this transaction will allow us to create a fully integrated nylon business with the scale and synergies to make it a more valuable asset with the flexibility to serve the needs of its customers, while at the same time exiting a non-core compounding business.”
