Honeywell(US:HON)2024-10-24 13:37Financial Performance - Honeywell reported net sales of $9,728 million for the three months ended September 30, 2024, an increase of 5.6% compared to $9,212 million in the same period of 2023[9]. - The company's net income for the three months ended September 30, 2024, was $1,415 million, down from $1,515 million in the same period of 2023, representing a decrease of 6.6%[11]. - Earnings per share (EPS) for the third quarter of 2024 was $2.17, compared to $2.29 in the same quarter of 2023, reflecting a decline of 5.2%[9]. - Honeywell's total costs and expenses for the three months ended September 30, 2024, were $7,904 million, an increase from $7,245 million in the same period of 2023, marking a rise of 9.1%[9]. - The company reported a comprehensive income of $1,107 million for the three months ended September 30, 2024, down from $1,572 million in the same period of 2023[11]. - For the nine months ended September 30, 2024, net sales reached $28,410 million, compared to $27,222 million for the same period in 2023, reflecting a growth of 4.4%[39]. Cash and Debt Management - Honeywell's cash and cash equivalents increased to $10,644 million as of September 30, 2024, compared to $7,925 million at the end of 2023[13]. - Long-term debt rose to $25.934 billion as of September 30, 2024, compared to $16.562 billion at December 31, 2023, marking an increase of 56.5%[14]. - The company reported net cash provided by operating activities for the nine months ended September 30, 2024, was $3.816 billion, significantly higher than $2.385 billion for the same period in 2023, indicating a growth of 60.2%[16]. - The company issued a total of $3.5 billion in August 2024 Senior Notes, with interest rates ranging from 4.65% to 5.00%[65]. - The company entered into a $1.5 billion 364-day credit agreement and a $4.0 billion amended and restated five-year credit agreement in March 2024, with no outstanding borrowings as of September 30, 2024[66]. Acquisitions and Investments - The company acquired Air Products' liquefied natural gas process technology and equipment business for a total consideration of $1,837 million, enhancing its energy transition portfolio[26]. - Honeywell acquired CAES Systems Holdings LLC for $1,930 million, enhancing its defense and space portfolio with high-reliability radio frequency technologies[29]. - The acquisition of Civitanavi Systems S.p.A. was completed for $200 million, focusing on position navigation and timing technology for aerospace and defense markets[30]. - Carrier Global Corporation's Global Access Solutions business was acquired for $4,917 million, which includes $2,050 million in intangible assets and $2,826 million in goodwill[31]. - The company reported capital expenditures of $771 million for the nine months ended September 30, 2024, compared to $675 million for the same period in 2023, an increase of 14.2%[16]. Shareholder Equity and Dividends - Honeywell's total shareowners' equity increased to $17,974 billion as of September 30, 2024, from $16,434 billion at December 31, 2023, a growth of 9.4%[14]. - Honeywell declared cash dividends per share of $1.08 for the third quarter of 2024, up from $1.03 in the same quarter of 2023, indicating a year-over-year increase of approximately 4.85%[18]. - The ending balance of retained earnings as of September 30, 2024, was $50,287 million, compared to $47,426 million in the prior year, marking an increase of approximately 6.0%[18]. Segment Performance - Aerospace Technologies segment reported net sales of $11,472 million for the nine months ended September 30, 2024, up from $9,951 million in the prior year[39]. - Industrial Automation segment net sales decreased to $7,485 million for the nine months ended September 30, 2024, compared to $8,160 million in the same period of 2023[39]. - Building Automation segment achieved net sales of $1,745 million for the three months ended September 30, 2024, up from $1,530 million in the same period of 2023, marking a growth of 14.0%[107]. - Energy and Sustainability Solutions segment reported net sales of $1,563 million for Q3 2024, slightly up from $1,551 million in Q3 2023, indicating a growth of 0.8%[107]. Legal and Compliance Matters - The company is cooperating with an SEC investigation focused on accounting matters related to its former Performance Materials and Technologies segment[97]. - Honeywell agreed to pay $202.7 million to resolve investigations by the DOJ, SEC, and Brazilian authorities related to compliance issues[98]. - The company continually assesses liabilities for various lawsuits and disputes, recognizing those that are probable and reasonably estimable[99]. Tax and Impairment Charges - The effective tax rate decreased in 2024 compared to 2023, attributed to increased benefits from non-U.S. earnings and employee share-based compensation[59]. - An impairment charge of $125 million was recorded on assets held for sale related to the personal protective equipment business during Q3 2024[128]. Foreign Exchange and Other Financial Adjustments - The company experienced a foreign exchange translation adjustment loss of $288 million for the three months ended September 30, 2024, compared to a gain of $59 million in the same period of 2023[11]. - Honeywell's foreign currency exchange contracts resulted in a loss of $213 million for the three months ended September 30, 2024[73].