Honeywell's third-quarter sales rose 9% The China business continued to grow strongly

Honeywell's third-quarter sales were up 9 percent, and China continued to grow strongly

CHARLOTTE, NC, United States, Oct. 27, 2021 – Honeywell (NASDAQ: HON) delivered strong third-quarter results, meeting or exceeding the company's performance guidance. Sales increased 9 percent in the third quarter, with organic sales up 8 percent. At the same time, Honeywell continues to deliver strong growth in China, where the very favorable investment environment presents great opportunities for the company.

CHARLOTTE, N.C., Oct. 22, 2021 – Honeywell (NASDAQ: HON) reported stellar third-quarter results that met or exceeded the company's guidance. Honeywell's third-quarter sales were up 9% on a reported basis and 8% on an organic basis. At the same time, China's growth continues to be strong as the country's very favorable investment environment provides business opportunities for companies.

"We continued our strong third-quarter results, delivering sales growth, significant margin growth and strong execution across all four business groups, even in the face of a challenging supply chain environment," said Darius Adamczyk, chairman and chief executive officer of Honeywell. "Organic sales growth of 8 percent was driven by a 38 percent increase in aftermarket sales in the Aerospace Business Group, a 21 percent increase in sales in the Safety & Productivity Solutions Group, and sales in UOP and Performance Materials in the Performance Materials and Technology Group up 29 percent and 14 percent, respectively. In addition, our focus on operational excellence and sales excellence led to a 130 basis point improvement in segment margin to 21.2 percent, 60 basis points above the upper end of our guidance. As a result, adjusted earnings per share of $2.02 increased 29% year-over-year and reached the upper end of the range of the third-quarter guidance. Cash performance was strong in the quarter, continuing to deliver on full-year cash flow commitments. We will continue to execute on our capital deployment strategy with $700 million in stock repurchases, announcing our 12th dividend increase in the last 11 years and successfully acquiring Performix to expand our portfolio of automation solutions for the life sciences industry. ”

Darius Adamczyk, Chairman and Chief Executive Officer of Honeywell, said, "The third quarter was another strong quarter for Honeywell, with sales growth, significantly expanded margins and excellent execution across all four segments despite the challenging supply chain environment. ” . “ Organic sales grew 8 percent, with 38 percent growth in Aerospace Commercial Aftermarket, 21 percent growth in Safety and Productivity Solutions, 29 percent growth in UOP and 14 percent growth in Advanced Materials and Technologies in the High Performance Materials and Technology segment. Our focus on operations and commercial excellence has enabled us to expand segment margins by 130 basis points to 21.2%, exceeding the high end of our guidance range of 60 basis points. As a result, we delivered adjusted earnings per share of $2.021, up 29% year-over-year, reaching the high end of our third-quarter guidance range. Our cash performance is strong and we remain on track to meet our cash flow commitments for the year. We continued to execute on our capital deployment strategy with $700 million in stock repurchases, announced the 12th dividend increase in the last 11 years, and completed the acquisition of Performix Inc. to expand our portfolio of automation solutions for the life sciences industry. ”

"Honeywell's China business continues to be strong, with high-single-digit year-over-year sales growth in the third quarter and no signs of slowing down. Honeywell continues to maintain a strong market position in the Chinese market," Du Ruizhe said at the company's third-quarter earnings briefing. He also said that the current investment environment and business opportunities in the Chinese market are very favorable, and China's focus on sustainable development also brings great opportunities to Honeywell, "We are very excited about this."

"Our growth in China continues to be strong. We delivered high-single-digit growth in the third quarter, and we don't actually see that trend weakening," Darius said on the third-quarter 2021 earnings call. "Honeywell's position in China continues to be very good." He added that China is currently trying to provide more support to the industry in the fourth quarter, which will create a very favorable investment environment and business opportunities for Honeywell, and he is also very excited about China's focus on sustainability and believes that Honeywell can be a major Chinese player.

He also said that despite the uncertainties in the global environment, such as supply chain constraints, rising raw material inflation, and a challenging labor market, the company's disciplined productivity and pricing system helped to achieve strong results in the third quarter. The company will continue to focus on these challenges in the fourth quarter and capitalize on short-term growth opportunities in its portfolio.

Adamczyk continued, "Despite an uncertain global environment, supply chain constraints, rising raw material inflation, and labor market challenges, our disciplined approach to productivity and pricing helped deliver a strong third quarter. We will continue to focus on mitigating these challenges in the fourth quarter while capitalizing on near-term growth opportunities in our portfolio. ”

Honeywell has updated its guidance to reflect the continued impact of macro environmental challenges and third-quarter results. Full-year sales are expected to be in the range of $34.2 billion to $34.6 billion, organic sales growth is expected to be in the range of 4 to 5 percent, and segment margins are expected to be in the range of 20.9 to 21.1 percent, due to supply chain constraints and other factors. Adjusted earnings per share are expected to be between $8.00 and $8.10. Operating cash flow is expected to remain in the range of $5.9 billion to $6.2 billion, and free cash flow is also expected to be in the range of $5.3 billion to $5.6 billion.

Honeywell updated its full-year guidance to reflect the continued impact of the macro challenging environment and third-quarter results. Due to supply chain constraints, full-year sales are now expected to be in the range of $34.2 billion to $34.6 billion, with organic sales growth of between 4% and 5%. Segment margin is expected to be in the range of 20.9% to 21.1%. Adjusted earnings per share2 are expected to be $8.00 to $8.10. Operating cash flow is still expected to be in the range of $5.9 billion to $6.2 billion, and free cash flow is expected to remain in the range of $5.3 billion to $5.6 billion.

Honeywell's third-quarter sales rose 9% The China business continued to grow strongly

Honeywell's third-quarter sales rose 9% The China business continued to grow strongly

Sections viewed

Contact

working hours