Honeywell Announces Pleasing Q3 Results, Raises Projections
Automation and Control Solutions (ACS) segment, in particular Energy, Safety and Security, records positive quarter. While overall sales is up 5%, ACS logs 9% rise.
MORRIS TOWNSHIP, N.J. ― Honeywell reports overall third quarter sales rose 5% to $10.1 billion. In the Automation and Control Solutions (ACS) segment in which its security business resides, sales were up 9%, 4% organically, compared with the third quarter of 2013. In fact, the positive results are said to be primarily driven by the favorable impact of the Intermec acquisition and strong organic growth across Energy, Safety and Security (ESS), particularly in the Scanning & Mobility, Industrial Safety, Security and Fire business units. In addition, Building Solutions & Distribution (BSD) saw continued strength in the Americas Distribution business.
According to a release, ACS segment profit was up 11% and segment margins expanded 40 bps to 15.9% driven by higher volume, commercial excellence, and productivity net of inflation, partially offset by the dilutive impact of the Intermec acquisition.
“Organic sales growth and a double-digit earnings increase highlighted Honeywell’s strong third quarter,” said Honeywell Chairman and CEO Dave Cote. “The continued integration and maturation of the Honeywell Operating System throughout our global portfolio is helping to drive sales, margin, earnings, and cash flow higher, and plenty of runway remains. We are committed to our ongoing seed planting investments to bolster our great positions in good industries and continuous process improvements to mitigate ongoing global macroeconomic uncertainties.”
Cote added that Honeywell is raising the low end of its 2014 proforma EPS outlook 11%-12% to $5.50-5.55.
“Looking ahead to 2015, we’re once again planning for a slow growth macro environment, but expect to continue delivering strong earnings growth. We’re confident that Honeywell will continue to outperform now and over the long-term driven by a relentless focus on new products and technologies, continued penetration of high-growth regions, and sustained implementation of our key process initiatives,” concluded Cote.
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About the Author
Scott Goldfine
Scott Goldfine is the marketing director for Elite Interactive Solutions. He is the former editor-in-chief and associate publisher of Security Sales & Integration. He can be reached at [email protected].
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