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HONEYWELL REPORTS $170.5 MILLION NET INCOME, $2.46 EARNINGS PER SHARE IN THIRD QUARTER

 HONEYWELL REPORTS $170.5 MILLION NET INCOME,
 $2.46 EARNINGS PER SHARE IN THIRD QUARTER
 EPS Up from Year-Earlier Period
 MINNEAPOLIS, Oct. 13 /PRNewswire/ -- Honeywell Inc. (NYSE: HON) today reported net income of $170.5 million, or $2.46 per share, in the third quarter of 1992, compared with $79.1 million, or $1.13 per share, in the same quarter last year.
 Third-quarter 1992 results included an after-tax gain of $91.6 million, or $1.32 per share, from automatic focus patent settlements and an extraordinary loss of $5.5 million, or 8 cents per share, from early redemption of long-term debt.
 Sales in the quarter ended Sept. 27 improved nearly 4 percent to $1.55 billion, up from $1.49 billion a year earlier, led by increases in two of the company's three major business segments. Operating profit decreased to $169.1 million from $178 million.
 The quarter's results demonstrate Honeywell's ability to perform satisfactorily in an environment of economic weakness, said James J. Renier, Honeywell chairman and chief executive officer.
 "Our strategies are geared toward performing well in a prolonged period of little or no economic growth in key world markets," Renier said. "At the same time, with a strong financial position and a dedication to find ways to serve our customers more effectively and efficiently, we will take advantage of the eventual economic turnaround.
 "Despite the fact that the long-predicted recovery hasn't materialized, our Home and Building Control and Industrial businesses achieved growth in sales and market share in the quarter. In the Space and Aviation business, sales declined as commercial airlines continued to defer orders for new aircraft. We continue to assess changing market conditions to ensure we are properly sized to meet customer requirements and maintain acceptable margins."
 During the quarter, Honeywell reduced long-term debt by calling $100 million of its 9-7/8 percent debentures due in 2017. The company also repurchased $47 million in stock as part of a five-year, $600 million stock buyback program.
 In September, the company entered into a joint venture with General Electric to jointly market, sell and distribute complementary lines of industrial control components.
 Third-Quarter Business Unit Results
 Home and Building Control. Operating profit was $58.2 million, compared with $62.9 million in the year-earlier quarter. The decline was primarily due to accelerated investment in new building automation products and the start of a process to streamline the North American field organization. In a tough economic environment, sales increased 9.8 percent to $601.8 million, led by strength in vertical markets, such as hospitals and schools, and by market share gains in small- and medium-sized commercial buildings. Orders increased slightly from the 1991 period.
 Industrial.
 Operating profit was $48.4 million, compared with $53.1 million in 1991. Sales increased 10.7 percent to $432.4 million from $390.5 million. Margins improved from the second quarter of 1992 but were down from the third quarter of last year, as customers continued to defer purchases of industrial process systems. The components business improved in the United States and remained weak in Europe, compared with the 1991 third quarter. Orders increased strongly and, at the end of the quarter, the order backlog contained a more favorable product mix.
 Space and Aviation.
 Operating profit increased 6.5 percent to $62 million, compared with $58.2 million in the 1991 third quarter. Sales declined to $477.4 million from $509.7 million, reflecting lower rates of new commercial aircraft production. Margins improved largely because of aggressive cost-control measures and a favorable sales mix in military avionics. Orders in the quarter declined sharply, primarily because of the continuing trend for airlines to delay new aircraft deliveries.
 Nine-Month Summary.
 For the first nine months of 1992, Honeywell earned net income of $372.4 million, up 63 percent from $228.5 million in the same period last year. Sales were $4.52 billion, compared with $4.48 billion a year earlier. Earnings per share were $5.36, compared with $3.24 last year.
 1992 results include an after-tax gain of $164 million, or $2.36 per share, in autofocus patent settlements and the extraordinary loss of $5.5 million, or 8 cents per share, from early redemption of long-term debt. Current-year nine-month results also include an after-tax provision, recorded in the first quarter, of $19.3 million, or 28 cents per share, for costs associated with productivity improvement programs and the anticipated disposition of certain non-strategic product lines.
 Honeywell is a global controls company that provides products, systems and services for homes and buildings, industry, and aviation and space. The company employs 58,000 people worldwide and had 1991 sales of $6.2 billion.
 HONEYWELL INC. AND SUBSIDIARIES
 INCOME STATEMENT (Unaudited)
 (Dollars in Millions Except Per Share Amounts)
 THIRD QUARTER
 1992 1991
 SALES $1,550.0 $1,493.0 3.8%
 COSTS AND EXPENSES
 Cost of sales 1,035.4 994.7
 Research and development 78.3 71.4
 Selling, general and
 administrative(1) 142.0 287.4
 Interest - net 14.6 18.1
 Equity income (1.4) (2.1)
 -- 1,268.9 1,369.5
 INCOME BEFORE INCOME TAXES 281.1 123.5
 PROVISION FOR INCOME TAXES 105.1 44.4
 INCOME BEFORE EXTRAORDINARY ITEM 176.0 79.1 122.5%
 EXTRAORDINARY LOSS (NET OF
 INCOME TAXES) 5.5 --
 NET INCOME $170.5 $79.1 115.5%
 EARNINGS PER COMMON SHARE
 Income Before Extraordinary Item $2.54 $1.13 124.8%
 Extraordinary Loss 0.08 --
 Net Income $2.46 $1.13 117.7%
 (1) Includes autofocus litigation settlements, less related
 expenses, of $152.8 in 1992.
 NINE MONTHS
 1992 1991
 SALES $4,517.4 $4,482.2 0.8%
 COSTS AND EXPENSES
 Cost of sales 3,056.1 3,035.4
 Research and development 221.9 218.9
 Selling, general and
 administrative(1) 606.4 831.5
 Interest - net 44.6 46.7
 Equity income (6.7) (7.3)
 -- 3,922.3 4,125.2
 INCOME BEFORE INCOME TAXES 595.1 357.0
 PROVISION FOR INCOME TAXES 217.2 128.5
 INCOME BEFORE EXTRAORDINARY ITEM 377.9 228.5 65.4%
 EXTRAORDINARY LOSS
 (NET OF INCOME TAXES) 5.5 --
 NET INCOME $372.4 $228.5 63.0%
 EARNINGS PER COMMON SHARE
 Income Before Extraordinary Item $5.44 $3.24 67.9%
 Extraordinary Loss 0.08 --
 Net Income $5.36 $3.24 65.4%
 AVERAGE NUMBER OF COMMON
 SHARES OUTSTANDING 69,486,685 70,624,285
 (1) Includes autofocus litigation settlements, less related expenses, of $273.4 in 1992.
 HONEYWELL INC. AND SUBSIDIARIES
 SALES AND OPERATING PROFIT BY SEGMENT |UNAUDITED~
 |Dollars in Millions~
 THIRD QUARTER
 1992 1991
 SALES
 Home and Building Control $601.8 $548.2
 Industrial 432.4 390.5
 Space and Aviation 477.4 509.7
 Other 38.4 44.6
 -- $1,550.0 $1,493.0
 OPERATING PROFIT
 Home and Building Control $58.2 $62.9
 Industrial 48.4 53.1
 Space and Aviation 62.0 58.2
 Other 0.5 3.8
 Total operating profit 169.1 178.0
 Interest expense (22.1) (23.4)
 Equity income 1.4 2.1
 General corporate
 income (expense) 132.7 (33.2)
 Income before income taxes $281.1 $123.5
 NINE MONTHS
 1992 1991
 SALES
 Home and Building Control $1,706.5 $1,578.4
 Industrial 1,257.4 1,167.9
 Space and Aviation 1,451.0 1,612.3
 Other 102.5 123.6
 -- $4,517.4 $4,482.2
 OPERATING PROFIT
 Home and Building Control $152.6 $140.6
 Industrial 123.5 157.8
 Space and Aviation 175.6 177.4
 Other (10.0) 0.9
 Total operating profit 441.7 476.7
 Interest expense (68.5) (66.7)
 Equity income 6.7 7.3
 General corporate income (expense) 215.2 (60.3)
 Income before income taxes $595.1 $357.0
 -0- 10/13/92
 /CONTACT: Kevin Whalen of Honeywell Inc., 612-870-2524 or 612-687-9244/
 (HON) CO: Honeywell Inc. ST: Minnesota IN: SU: ERN


DS -- MN004 -- 9189 10/13/92 09:55 EDT
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Date:Oct 13, 1992
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