- Fourth Quarter Sales $9.0 Billion, Up 12%, 10% Organic Growth
- Fourth Quarter EPS Ahead of Expectations: $0.87 Proforma, $0.47 Reported
- 2010 Record Year For Cash Flow From Operations of $4.2B and Free Cash Flow of $3.6B
- 2011 EPS Guidance Raised 10 Cents to $3.60-3.80 from $3.50-3.70, Excluding Gain on Sale
Honeywell announced full-year 2010 sales increased 8% to $33.4 billion vs. $30.9 billion in 2009. Earnings per share (proforma) were up 12% to $3.00 versus $2.69 in the prior year, excluding the unfavorable impact of the pension mark-to-market adjustment. Reported earnings per share for 2010 were $2.59 versus $2.05 in the prior year. Free cash flow (cash flow from operations less capital expenditures) was a record $3.6 billion (cash flow from operations of $4.2 billion).
Fourth quarter sales increased 12% to $9.0 billion versus $8.1 billion in 2009. Earnings per share (proforma) were $0.87 versus $0.83 in the prior year fourth quarter, excluding the unfavorable impact of the pension mark-to-market adjustment ($0.40 per share in 2010 and $0.63 per share in 2009). Reported earnings in the fourth quarter were $0.47 per share versus $0.20 in the prior year. Free cash flow was $0.7 billion (cash flow from operations was $1.0 billion), including a $600 million cash contribution to U.S. pension in the fourth quarter.
“We’re very pleased with our strong fourth quarter results, capping a terrific year for Honeywell,” said Honeywell Chairman and Chief Executive Officer Dave Cote. “The year saw progressively improved market conditions, with great execution across our businesses resulting in robust sales growth and record segment margins and cash flow. Our seed planting investments contributed meaningfully to our growth and productivity in 2010, with significant global customer wins, a robust new product pipeline, and traction on our key process initiatives. Our orders are trending higher across our businesses, and with the continued improvement we’re seeing in the global economy, we’re confident in our outlook for higher revenues, and 20% plus earnings growth in 2011.”
Honeywell raised its 2011 earnings guidance to $3.60-3.80 per share, up from $3.50-3.70 per share, excluding any mark-to-market pension adjustment. The company also reaffirmed its previously-stated 2011 sales guidance of $35.0-36.0 billion (excluding the impact of the anticipated Discontinued Operations accounting treatment of CPG) and free cash flow guidance of $3.5-3.7 billion, before any U.S. pension contributions (cash flow from operations of $3.3-3.5 billion, including $1 billion pension contribution).
For more information, read the press release or listen to a replay of a Webcast of the Investor Conference Call.
