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HONEYWELL REPORTS $57.3 MILLION NET INCOME, 42 CENTS EARNINGS PER SHARE IN FIRST QUARTER;

 Profits improve on comparable basis over year-earlier levels
 MINNEAPOLIS, APRIL 20 -- Honeywell Inc. (NYSE: HON) today reported first-quarter 1993 net income of $57.3 million, or 42 cents per share. On a comparable basis, 1992 first-quarter earnings were $48.4 million, or 36 cents per share.
 Year-earlier figures exclude two special items: an after-tax charge of $144.5 million, or $1.04 per share, to adopt new accounting standards; and an after-tax gain of $65 million, or 46 cents per share, from the settlement of an autofocus patent dispute. Including the special items, Honeywell had a net loss of $31.1 million, or 22 cents per share, in the first quarter of 1992.
 Sales in the first quarter, which ended April 4, were $1.44 billion, compared with $1.48 billion in the first quarter of 1992, with declines in Space and Aviation partially offset by gains in Industrial. Operating profit was $123.8 million, compared with $110.7 million a year earlier.
 "Efforts worldwide to increase productivity and control costs enabled us to deliver improved earnings per share in the first quarter," said Michael R. Bonsignore, who officially takes over today as Honeywell's chairman and chief executive officer. "We experienced general improvement in U.S. markets, while the economy in Europe was weaker than anticipated. Meanwhile, we continued to take advantage of economic growth in Asia and Eastern Europe.
 "Our sales, operating profit and orders in the first quarter were reduced by the effect of currency translations because the dollar was more than 8 percent stronger against foreign currencies than in the first quarter of last year," Bonsignore said, noting that about 35 percent of Honeywell's sales come from outside the United States.
 He also said Honeywell increased its investment in research and development 14 percent in the first quarter, compared with yeara?rlier levels.
 Home and Building Control. Operating profit was $41.5 million, compared with $44.8 million a year earlier. Sales were $543 million, compared with $547.5 million in the 1992 first quarter.
 Home control sales and margins in the U.S. improved with the economy, but declined in Europe because of the economic slowdown. Building control experienced solid growth with its comprehensive technical services in markets such as schools and hospitals. U.S. building control margins declined because of costs associated with the first-quarter introduction of the new Excel 5000 building automation platform. Consolidation of U.S. field operations put short-term pressure on building control productivity.
 "In Europe, the economy was weaker than we expected, particularly in Germany. We have taken action in anticipation of continued weakness to minimize the impact on our financial performance for the balance of 1993," Bonsignore said. Orders decreased 5 percent from strong year- earlier levels, as a result of soft European demand.
 Industrial. Operating profit was $43.9 million, up from $28.8 million a year earlier. Sales were $412.2, compared with $394.6 million in the 1992 first quarter.
 The quarter was characterized by an improved durable goods market in the United States and improved margins in the components business in Europe. In industrial systems, demand increased as companies stepped up previously deferred capital spending projects.
 "We experienced particular strength in the Middle East, Eastern Europe and Asia-Pacific, where overall demand is steadily increasing," Bonsignore said. "Our orders in the quarter included a major project at a refinery in Ukraine and the first refinery modernization order from Honeywell's new joint venture with SINOPEC, the China National Petro chemical Corp."
 Orders increased 1 percent from year-earlier levels.
 During the quarter, the company announced an alliance with Consilium, Inc. to integrate production information with process controls as part of Honeywell's TotalPlant Open Solutions integrated plant offerings.
 Space and Aviation. Operating profit was $38.3 million, down from $47.9 million a year earlier. Sales declined to $446.8 million, from $512.7 million in the first quarter of 1992.
 "The continued delays in airline orders for new aircraft announced during the quarter were included in our forecast," Bonsignore said. "We expected market conditions to remain difficult, and we have sized the business to meet those conditions."
 Meanwhile, the company continues to aggressively invest in research and development of next-generation avionics, which will be integral to new aircraft such as the Boeing 777 and Cessna Citation X.
 Orders in the quarter declined 25 percent. During the quarter, the company announced an exclusive agreement with Apple Computer, Inc. to use Apple Macintosh technology in Honeywell's information management systems for commercial jet cockpits.
 Other. Operating profit from other operations was $100,000, up from a $10.8 million loss a year earlier. Sales were $36.6 million, compared with $26.8 million in the 1992 first quarter.
 In other news, the company last week said it will receive $70 million in settlement of lawsuits relating to Honeywell's 1986 purchase of Sperry Aerospace Group. The settlement will be recognized in the second quarter primarily as a reduction in the purchase price of Sperry Aerospace.
 At the end of the first quarter, Honeywell's debt-to-total capitalization ratio was 30 percent, within the company's 30 to 40 percent target range. Also in the quarter, Honeywell repurchased $61 million in shares as part of its five-year, $600 million share buyback program.
 Honeywell is a global controls company providing products, systems and services that increase comfort, environmental protection, energy conservation, productivity and safety in homes and buildings, industry, and aviation and space. The company employs 55,000 people in 95 countries on six continents, and had 1992 sales of $6.2 billion.
 HONEYWELL INC. AND SUBSIDIARIES
 INCOME STATEMENT (Unaudited)
 (Dollars in Millions Except Per Share Amounts)
 FIRST QUARTER
 1993 1992 Percent
 SALES................................... $1,438.6 $1,481.6 (2.9)
 COSTS AND EXPENSES
 Cost of sales........................... 989.8 1,023.0
 Research and development................ 78.9 69.2
 Selling, general and administrative..... 267.3 302.8
 Autofocus litigation settlements........ (108.3)
 Interest - net.......................... 14.8 16.0
 Equity loss............................. 0.3 0.1
 -- 1,351.1 1,302.8
 INCOME BEFORE INCOME TAXES.............. 87.5 178.8
 PROVISION FOR INCOME TAXES.............. 30.2 65.4
 INCOME BEFORE CUMULATIVE
 EFFECT OF ACCOUNTING CHANGES............ 57.3 113.4
 CUMULATIVE EFFECT OF ACCOUNTING CHANGES. (144.5)
 NET INCOME (LOSS)....................... $57.3 $(31.1) 284.2
 EARNINGS (LOSS) PER COMMON SHARE
 Income Before Cumulative
 Effect of Accounting Changes............ $0.42 $0.82 (48.8)
 Cumulative Effect of Accounting Changes. (1.04)
 Net Income (Loss)....................... $ 0.42 $ (0.22) 290.9
 AVERAGE NUMBER OF COMMON
 SHARES OUTSTANDING.............. 136,122,503 139,857,906
 HONEYWELL INC. AND SUBSIDIARIES
 SALES AND OPERATING PROFIT BY SEGMENT [UNAUDITED]
 [Dollars in Millions]
 FIRST QUARTER
 1993 1992
 SALES
 Home and Building Control $ 543.0 $ 547.5
 Industrial 412.2 394.6
 Space and Aviation 446.8 512.7
 Other 36.6 26.8
 -- $1,438.6 $1,481.6
 OPERATING PROFIT
 Home and Building Control $41.5 $44.8
 Industrial 43.9 28.8
 Space and Aviation 38.3 47.9
 Other 0.1 (10.8)
 Total operating profit 123.8 110.7
 Interest expense (18.6) (23.4)
 Equity loss (0.3) (0.1)
 General corporate income (expense) (1) (17.4) 91.6
 Income before income taxes $ 87.5 $ 178.8
 (1) Includes autofocus litigation settlements, less related expenses, of $108.3 in 1992.
 -0- 4/20/93
 /CONTACT: Kevin Whalen of Honeywell, 612-951-0070/
 (HON)


CO: Honeywell Inc. ST: Minnesota IN: CPR SU: ERN

DS -- MN007 -- 7869 04/20/93 09:39 EDT
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