Honeywell’s 2Q03 profits drop nearly 34%

Morris Township, N.J.—Honeywell International reported that its profits decreased 33.9% on earnings of $319 million during the second quarter of 2003 (2Q03) due to decreased revenues in its aerospace and specialty materials divisions and increased expenses for development, administration and pensions.

07/25/2003


 

Morris Township, N.J.— Honeywell International reported July 17 that its profits decreased 33.9% on earnings of $319 during the second quarter of 2003 (2Q03) due to decreased revenues in its aerospace and specialty materials divisions and increased expenses for development, administration and pensions. Earnings were 37 cents per share in 2Q03 and 56 cents per share in 2Q02.

 

The company’s 2Q03 revenues of $5.7 billion were up 2% from the previous year, driven by 4% of foreign currency translation. Free cash flow of $382 million includes the impact of a $170 million voluntary pension contribution.

 

'The results for the second quarter represent solid performance for Honeywell with good revenues, earnings and cash flow in a difficult economic environment,' said David Cote, Honeywell’s chairman and CEO. 'We continue to be focused on executing key strategies, improving customer service, reducing cycle times and investing to support our growth initiatives. The results from the quarter reflect the determination of our management team and the efforts of Honeywell employees worldwide.'

 

Meanwhile, segment profit margins were 8.8% during 2Q03, compared to 12.2% for the same period a year earlier. The increase in pension costs accounted for 1.5 percentage points of this change, and the remainder was primarily caused by declines in commercial aerospace and increased product development and administrative expenses.

 

Free cash flow equaled 120% of net income, with working capital contributing approximately $100 million in 2Q03, after adjusting for the non-cash impact of foreign currency translation. Cash and cash equivalents reached $2.6 billion, resulting in net debt of $2.8 billion, or 22% of net capital.

 

'The second quarter also featured significant progress in each of our businesses,' added Cote. 'In addition to the $1.3 billion in new contracts announced at the Paris Air Show, Honeywell's Aerospace business received an order for Primus Epic integrated cockpits for 85 to 135 new Embraer regional jets purchased by US Airways. In another highlight, Primus Epic obtained its first government approval as part of the Bell/Agusta AB139 helicopter's certification in Italy.

 

'During the quarter in our Automation and Control Solutions (ACS) business, cumulative orders climbed above $240 million for the Experion PKS process control system. Our turbocharger business had its fourth consecutive quarter of double-digit revenue growth, exhibiting strength in all geographic regions. And, we took an important step in the reorganization of our Specialty Materials business by completing transactions with BASF.”

 

In fact, Frost & Sullivan recently named ACS as its 2003 Industrial Controls Solutions Company of the Year, attributing its success to products, such as the Experion PKS, which automates, controls and monitors manufacturing operations.

 

Honeywell’s recent investor webcast and related presentation materials are available at www.honeywell.com/investor .

 

Control Engineering Daily News Desk
Jim Montague, news editor
jmontague@reedbusiness.com

 



No comments
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by...
The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
Each year, a panel of Control Engineering and Plant Engineering editors and industry expert judges select the System Integrator of the Year Award winners in three categories.
This eGuide illustrates solutions, applications and benefits of machine vision systems.
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
This eGuide contains a series of articles and videos that considers theoretical and practical; immediate needs and a look into the future.
Controller programming; Safety networks; Enclosure design; Power quality; Safety integrity levels; Increasing process efficiency
Additive manufacturing benefits; HMI and sensor tips; System integrator advice; Innovations from the industry
Robotic safety, collaboration, standards; DCS migration tips; IT/OT convergence; 2017 Control Engineering Salary and Career Survey
Featured articles highlight technologies that enable the Industrial Internet of Things, IIoT-related products and strategies to get data more easily to the user.
This article collection contains several articles on how automation and controls are helping human-machine interface (HMI) hardware and software advance.
This digital report will explore several aspects of how IIoT will transform manufacturing in the coming years.

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

Infrastructure for natural gas expansion; Artificial lift methods; Disruptive technology and fugitive gas emissions
Mobility as the means to offshore innovation; Preventing another Deepwater Horizon; ROVs as subsea robots; SCADA and the radio spectrum
Future of oil and gas projects; Reservoir models; The importance of SCADA to oil and gas
Automation Engineer; Wood Group
System Integrator; Cross Integrated Systems Group
Jose S. Vasquez, Jr.
Fire & Life Safety Engineer; Technip USA Inc.
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
click me