Honeywell announced financial results for the first quarter of 2017 and updated its full-year 2017 earnings guidance after observing stronger than expected sales in its aerospace and energy businesses.
Honeywell reported a strong start to 2017, with over 2% organic sales growth, 70 basis points of segment margin expansion, and free cash flow of nearly US$ 800 million that was more than six times greater than 2016.
Strong operational performance during first quarter resulted in reported earnings per share of US$ 1.71, up 10% compared to US$ 1.56 from same period of 2016.
“Normalizing for tax, earnings per share was US$ 1.66, or 2 cents above the high-end of our first-quarter guidance and up 11% versus last year, excluding divestitures,” said Darius Adamczyk, President and CEO of Honeywell.
“Each of our businesses contributed,” Adamczyk said. “The commercial aftermarket within Aerospace and the global distribution business within Home and Building Technologies remained strong. In Performance Materials and Technologies, robust demand for Solstice® low-global-warming products drove double-digit organic growth in Advanced Materials, and improving conditions in the oil and gas industry bolstered ongoing strength in UOP. In Safety and Productivity Solutions, demand for warehouse solutions and industrial safety products enabled growth in the quarter.”
Adamczyk concluded, “Our diversified portfolio, coupled with the investments we’ve made over the past several years, drove our excellent performance in the first quarter. As a result of our performance, we are raising the low end of our full-year guidance by 5 cents. We now anticipate that 2017 earnings per share will be US$ 6.90 to US$ 7.10, up 7% to 10%, excluding divestitures, any pension mark-to-market adjustments, and 2016 debt refinancing charges.”
Honeywell in Mexico
Mexico has played an important role in Honeywell's globalization initiative over the past decade, greatly expanding the company's manufacturing base and shared services operations. The country makes a big contribution to the company's success with its increasing domestic sales, exports and the production of aerospace, automation and control, and turbocharger products.
Honeywell first began operations in Mexico City on April 16, 1947. Today, all four strategic business groups are operating in Mexico with 17,500 employees (as of 2015), 15 facilities and four offices located in Baja California, Chihuahua, Nuevo Leon, San Luis Potosi and Mexico City.
Honeywell's Mexicali Research & Technology Center in Baja California is a good example of the innovation and intellectual capabilities available in Mexico. This systems integration lab employs 350 people engaged in the design, engineering and testing of components for aircraft systems.