Honeywell(US:HON)2023-07-26 16:00Financial Performance - Honeywell reported net sales of $9,146 million for the three months ended June 30, 2023, an increase of 2.2% compared to $8,953 million in the same period of 2022[12]. - Net income attributable to Honeywell for the six months ended June 30, 2023, was $2,881 million, representing a 20.3% increase from $2,395 million in the same period of 2022[12]. - Earnings per share (EPS) for Q2 2023 was $2.24, compared to $1.86 in Q2 2022, reflecting a 20.3% increase[12]. - The company reported a comprehensive income of $1,414 million for Q2 2023, compared to $1,165 million in Q2 2022[15]. - Net sales for the six months ended June 30, 2023, were $18,010 million, an increase from $17,329 million in the same period of 2022, representing a growth of approximately 3.9%[97]. - The company reported a net income attributable to Honeywell of $1,487 million for Q2 2023, compared to $1,261 million in Q2 2022, reflecting a 17.9% year-over-year growth[107]. Segment Performance - Aerospace segment net sales were $3,341 million for the three months ended June 30, 2023, up 15.3% from $2,898 million in the same period of 2022[43]. - Honeywell Building Technologies segment net sales were $1,510 million for the three months ended June 30, 2023, slightly down from $1,531 million in the same period of 2022[43]. - Performance Materials and Technologies segment net sales increased to $2,861 million for the three months ended June 30, 2023, compared to $2,694 million in the same period of 2022, reflecting a 6.2% growth[43]. - Safety and Productivity Solutions segment net sales decreased to $1,433 million for the three months ended June 30, 2023, down from $1,829 million in the same period of 2022, a decline of 21.7%[43]. - Total segment profit for the three months ended June 30, 2023, was $2,052 million, up from $1,867 million in 2022, indicating an increase of 9.9%[149]. Assets and Liabilities - Total assets as of June 30, 2023, were $62,337 million, slightly up from $62,275 million at the end of 2022[18]. - Honeywell's total current liabilities decreased to $17,174 million as of June 30, 2023, from $19,938 million at the end of 2022[18]. - Honeywell's long-term debt increased to $17,600 million as of June 30, 2023, from $15,123 million at the end of 2022[18]. - The total long-term debt and current related maturities increased to $18,545 million as of June 30, 2023, from $16,853 million as of December 31, 2022[80]. - Total environmental liabilities increased to $693 million as of June 30, 2023, up from $615 million at the end of 2022[112]. Cash Flow and Investments - Cash flows from operating activities decreased to $576 million in 2023 from $825 million in 2022, reflecting a decline of 30.1%[21]. - The company reported a net cash used for investing activities of $709 million in 2023, compared to a net cash provided of $414 million in 2022[21]. - Honeywell's net cash used for financing activities was $863 million in 2023, a significant decrease from $3,832 million in 2022[21]. - The company repurchased $1,176 million of common stock in the first half of 2023, compared to $2,437 million in the same period of 2022, indicating a decrease of 51.7%[24]. - Honeywell's cash dividends paid in the first half of 2023 totaled $1,378 million, compared to $1,339 million in 2022, marking an increase of 2.9%[24]. Research and Development - The company invested $375 million in research and development during Q2 2023, a decrease of 2.8% from $386 million in Q2 2022[12]. - Research and development expenses remained flat year-over-year for both Q2 and YTD 2023[181][182]. Tax and Regulatory Matters - The effective tax rate for the Company was higher than the U.S. federal statutory rate of 21%, primarily due to increased benefits from taxes on non-U.S. earnings[77]. - The effective tax rate decreased by 470 basis points due to benefits from taxes on non-U.S. earnings and lower repositioning related expenses[189]. - Honeywell reached a comprehensive resolution to investigations by the DOJ and SEC, agreeing to pay $202.7 million in penalties and disgorgement in January 2023[137]. Environmental and Asbestos Liabilities - Honeywell's total asbestos-related liabilities as of June 30, 2023, amounted to $1.249 billion, down from $2.616 billion as of December 31, 2022[117]. - The company reported insurance recoveries for asbestos-related liabilities totaling $244 million as of June 30, 2023, compared to $265 million at the end of 2022[120]. - Honeywell agreed to pay $1.325 billion to the NARCO Trust as part of a buyout agreement, which was completed on January 30, 2023[124]. - As of June 30, 2023, Honeywell recorded a receivable of $103 million from Resideo for environmental costs, with $140 million classified as other current assets and $507 million as other assets[116]. Market and Economic Conditions - The Russia-Ukraine conflict continues to impact global financial and energy markets, contributing to supply chain shortages and inflationary pressures[158]. - The company has implemented strategies to mitigate supply chain constraints and inflationary pressures, including pricing actions and direct engagement with suppliers[157].