Honeywell Announced Its Results for The First Quarter of 2014;Organic Sales Growth 1%

Honeywell announced its results for the first quarter of 2014.

Highlights:
-Organic Sales Growth 1%, Up 3% Excluding Defense & Space
-EPS Up 6% Year-Over-Year Reported, Up 10% Using Normalized Tax Rate
-$0.10 EPS Gain Funding $0.11 EPS Restructuring And Other Actions
-Increasing Proforma EPS Guidance To $5.40 - $5.55, From $5.35 - $5.55

“Honeywell had a good start to the year with strong margin expansion driving better than expected earnings,” said Honeywell Chairman and CEO Dave Cote.  “We saw 3% organic sales growth ex-Defense & Space, with strong execution across each of the businesses driving earnings above the high-end of our guidance. 

"We remain cautiously optimistic on the macro environment, even with some nice momentum exiting the quarter in our short-cycle and long-cycle businesses driving organic sales growth acceleration as we progress through the year. As a result of the first quarter performance and overall favorable outlook for our key end markets, we’re raising the low-end of our 2014 Proforma EPS outlook by $0.05 and our new guidance range is $5.40-$5.55.

“We are also increasing our cash flow forecast for the year given the strong first quarter working capital performance.  We remain confident in our outlook and intend to perform better than our peers driven by our diversity of opportunity, relentless seed planting in new products and technologies, continued penetration of High Growth Regions (HGRs), and growing traction on key process initiatives. 

“We’ve also proactively redeployed non-operating gains and operational earnings to fund smart new repositioning projects benefiting 2015 and beyond.  Our recently announced organizational changes demonstrate the strength of our organization, add further evidence to the effectiveness of the Honeywell operating model, and reaffirm our belief that the best is yet to come for Honeywell.”

In April 2014, Honeywell announced the realignment of our Honeywell Process Solutions (HPS) business from Automation and Control Solutions (ACS) into Performance Materials and Technologies (PMT). Effective with the reporting of second quarter 2014 results, Honeywell will report its financial performance based on the inclusion of HPS in PMT.  During the second quarter of 2014 Honeywell will make available segment results revised for the new reporting structure to provide financial information on a basis consistent with the new reporting structure.