Monday, January 30, 2012

Honeywell 4Q Earnings

Honeywell reported positive fourth quarter earnings this past Friday. Some of the quarter highlights include $9.5B in sales (+8%), and $1.05 EPS (+21%). Segment margins also expanded 90 bps to 15.1%. Also, the company posted FCF of $1.4B FCF representing a 169% Conversion. HON reports an increase in annual sales of 13% and a 35% increase in EPS. The company attributes these numbers to growth in the following segments: Turbocharger, Commercial Aerospace AM and UOP sales.

From a Macro perspective Honeywell remains positive on the growth in the emerging markets of China, the Middle East, and India, after an increase in sales of 20%. Going forward the company predicts a 12-15% increase in the Specialty Material segment. This is driven by expected growth in demand for Para-xylene in the emerging markets.


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