In spite of lower-than-expected sales in the third quarter, Honeywell International’s overall revenue increased by 3 percent year-over-year to $9.65 billion from $9.34 billion in the year-ago quarter.
Sales in Honeywell’s Automation and Control business reached $4.12 billion from $3.95 billion the prior year, the company reported. Sales were up 4 percent reported and 3 percent organic compared with the third quarter of 2012, primarily driven by growth in Energy, Safety, and Security due to strong residential end markets, improving commercial retrofit activity, new product introductions, and the favorable impact of acquisitions net of divestitures. Segment profit was up 11 percent.
“Honeywell executed well in the quarter, building on the momentum we’ve seen throughout 2013,” said Honeywell Chairman and CEO Dave Cote in a release. “We delivered another quarter of double digit EPS growth (when normalized for tax). Despite lower than expected sales in the quarter, primarily related to the delay in closing Intermec and lower Defense & Space sales, strong execution across the portfolio helped drive earnings at the high-end of our guidance range.
“Our short-cycle businesses, particularly Energy, Safety and Security, and Turbo Technologies, are benefitting from improving end markets, new product introductions, and geographic expansion, while our long-cycle businesses are maintaining a robust backlog, driven by favorable macro trends and strong win rates,” Cote added.
“Productivity was impressive across the portfolio, enabling further segment margin expansion in all four businesses and continued proactive funding of new repositioning projects,” Cote added. “As a result of the year-to-date performance, we are raising the low-end of our 2013 EPS outlook by $0.05 to $4.90-4.95, which is the high-end of the initial guidance range we provided almost a year ago. Looking ahead to 2014, we are planning for a continued slow growth macro environment, but see a path to strong earnings growth driven by our relentless seed planting in new products and technologies, continued penetration of high growth regions, and growing traction on key process initiatives.”