Honeywell Forecasts 2016 Sales Up 4-6% and EPS Up 6-10%
December 16, 2015
Today Honeywell announced its 2016 financial forecast with sales projected to be up 4 to 6% to $39.9-$40.9 billion and core organic sales up 1 to 2% driven by commercial excellence, operational execution and contribution from mergers and acquisitions. Earnings per share (EPS) guidance is projected at $6.45-$6.70, up 6-10% over 2015.
“We expect 2016 to be another year of earnings outperformance for Honeywell,” said Honeywell Chairman and CEO Dave Cote. “We have a credible and attainable plan to achieve the guidance we announced today. First, where there are opportunities to support growth to drive outperformance in parts of the portfolio, such as in Fluorine Products, Transportation Systems, and in the High Growth Regions, we will continue to invest in the development of new products and technologies. Second, we will be cautious in our sales planning in the end markets where we see further uncertainty heading into 2016. Third, and consistent with our proven approach, we will plan our costs and spending conservatively, ensuring we remain flexible as a company while driving outstanding operational execution. Finally, we will maintain our ‘seed planting’ investments for the future, supported by our robust pipeline of funded restructuring projects and continued investment in R&D.”
“On 1%-2% core organic growth, we expect segment margin expansion of 80 to 110 basis points (excluding the impact of M&A) driven by our key process initiatives, including HOS Gold,” continued Cote. “We are also excited about the expected 2016 contributions from our recently announced acquisitions. We will have deployed over $10 billion of capital in 2015 through a combination of return-enhancing acquisitions, reinvestments in our businesses, and returns of capital to our shareowners. We are confident that our continued robust cash generation and strong balance sheet will provide us further opportunity to enhance returns for our shareowners.”