Honeywell Overcomes Slow Sales to Post Gains in Third-Quarter 2013, Expects Steady Growth to Continue into 2014

---

Researched by Industrial Info Resources (Sugar Land, Texas)--Leading diversified technology company Honeywell International (NYSE:HON) (Morris Township, New Jersey) reported modest overall gains for the third quarter of 2013, as acquisitions and end-market improvements offset sales that were slightly below expectations. Net income was reported to be $990 million, a 4.21% increase from the third quarter of 2012.

Net sales stood at $9.65 billion, a 3.26% increase from the same period last year. Sales were lower than had been expected, partly due to program delays and planned ramp-downs in the Aerospace segment's Defense & Space business, as well as delays in closing the mid-September deal to acquire Intermec, a leading provider of mobile computing, data-collection solutions and printing solutions. However, commercial Aerospace sales strengthened. Honeywell also signed an agreement earlier this month to acquire a majority stake (70%) in Thomas Russell, a leading provider of technology and equipment for natural gas processing and treating.

While Honeywell's long-cycle businesses are maintaining a strong project backlog, the short-cycle businesses, including Turbo Technologies and Energy, Safety and Security, are seeing an improvement in end markets and a positive reaction to newly introduced products. UOP LLC, a subsidiary that develops technology for the petroleum refining, gas-processing and petrochemical industries, reported stronger productivity and licensing activity during the quarter. The Transportation Systems segment benefited from the introduction of turbo gas projects into new regions.

Expenditures on property, plants and equipment were reported to be $203 million in third-quarter 2013, compared with $234 million in the same period last year.

Industrial Info is tracking $828 million in active projects involving Honeywell, including the $50 million addition of a unit at a J.R. Simplot Company (Boise, Idaho) fertilizer plant in Lathrop, California. The unit will produce Sulf-N 26, a dry granular ammonium sulfate nitrate fertilizer that is patented by Honeywell. The company also is adding a production line at its South Works plant in Baton Rouge, Louisiana. The line will produce HFO-1234ze, which is commonly used as a propellant and blowing agent.

"On the mergers and acquisitions front, the good news is that Intermec [acquisition] is now officially closed," said Dave Cote, the chairman and chief executive officer of Honeywell, in a conference call. "We're really excited about the business, which roughly doubles the size of our scanning and mobility portfolio, and the opportunity to merge Intermec's expertise and innovative products and solutions into our already great position in the highly attractive automatic identification/data collection space. In addition to strengthening our core business, Intermec will open up new opportunities with their global presence and channel strength."

Honeywell executives expect full-year sales to total between $38.8 billion and $39 billion. Cote said he expects the global economy to remain slow going into 2014, but also believes that the company will benefit from new products and technologies, particularly in the Performance Materials and Technologies segment, as well as ongoing project development in high-growth regions. International growth in the Aerospace segment is expected to partly offset a continued decline in U.S. federal defense spending, and new product launches are expected to benefit the Transportation Systems segment in the U.S. and China.

"We continue to see good growth in the U.S. and residential and turbo markets," Cote said in the conference call. "We're encouraged by the pickup in short-cycle order rates in Europe overall, and continued growth in China following a slow start to the year. With just over two months left in the year, we're confident in our ability to deliver at the high end of the guidance we set for 2013 last December."

For more information, visit Industrial Info's North American Industrial Manufacturing Project Database.

View Plant Profile - 3044153 1015520
View Project Report - 300055086 300039562

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.