Honeywell Reports First Quarter 2015 Sales of $9.2 Billion & EPS Up 10% to $1.41 Per Share
April 17, 2015
Honeywell announced its first quarter 2015 results with sales of $9.2 billion and earnings per share (EPS) up 10% to $1.41. Core organic sales grew 2% and segment margin improved 18.7% to 220 bps.
The company is raising its 2015 EPS guidance range to $6.00-$6.15, an increase of 8-11%.
“Honeywell had a good start to 2015 delivering double-digit earnings growth at the high end of our guidance range and experiencing improving momentum over the course of the quarter,” said Honeywell Chairman and CEO Dave Cote. “Each of our businesses grew on a core organic basis and generated significant margin improvement in the first quarter as a result of new product introductions, High Growth Region performance, other commercial excellence, and prudent cost management. Free cash flow was adversely impacted by the payment of the OEM incentives we accrued in the fourth quarter and the timing of tax payments, and we remain on track to our full-year guidance.”
Cote continued, “While we are off to a strong start to 2015, we will continue to plan conservatively as the global economic environment continues to evolve, and in the first quarter we funded additional repositioning, which will continue to improve our cost position. We are raising the low end of our full-year EPS guidance range to $6.00-$6.15. We expect core organic sales for the full year to be up ~3%, while our reported sales are expected to be down 2% - 3% due to the impact of foreign currency, the divestiture of Friction Materials, and raw materials pricing in Resins & Chemicals. We’re able to raise our full-year earnings guidance and maintain our cash outlook while continuing to invest for the future in seed planting and additional repositioning because of new products and technologies, further penetration of High Growth Regions, conservative cost planning, and deployment of our key process initiatives as part of HOS Gold. We’re confident that our balanced portfolio mix of short- and long-cycle businesses is well-positioned to deliver on our 2015 commitments and our 2018 targets.”