Honeywell Earnings Up 24 Per Cent, Q1
The sales of $US6.5 billion were up 4 percent on a reported basis, reflecting 6 percent organic sales growth offset by the net impact of acquisitions and divestitures. Net income was $US359 million for the quarter, up from $US295 million last year. Cash flow from operations was $US329 million and free cash flow (cash flow from operations less capital expenditures) was $US194 million. “We are very pleased with first-quarter results,” said Dave Cote, Honeywell chairman and CEO, in a statement. “This is a terrific start to the year. Organic growth and strong operational execution contributed to better than expected performance in the quarter. “In addition, we completed the Novar acquisition, and are well on the way to successfully integrating Novar’s IBS business into Honeywell. We are excited about the fit of IBS into our core fire, environmental controls, security and services businesses, and the overall market and distribution opportunities it brings to Honeywell.” Honeywell’s Automation and Control Solutions (ACS), in which its security and fire/life-safety products companies reside, was cited by Cote as “experiencing strong sales growth.” ACS sales were up 2 percent, compared with the first quarter of 2004, driven by growth in Life Safety and Security, partially offset by prior year divestitures. Honeywell Int’l is a $US26 billion diversified technology and manufacturing company.