NEWTOWN, Conn. -- For the first quarter of 2019, Honeywell reported sales of $8.9 billion, down 15 percent compared to $10.4 billion in the first quarter of 2018. Net income was $1.45 billion compared to $1.44 billion. The lower sales results were due to the spin-offs of the Transportation Systems business (formerly in Aerospace) and the Homes and ADI Global Distribution business (formerly in Honeywell Building Technologies) during the year. On an organic basis, which excluded the spun-off operations, Honeywell's were up 8 percent for the quarter.
"Honeywell delivered a very strong start to 2019 with first-quarter results that exceeded the high end of our sales and earnings guidance. Organic sales grew 8% led by our long-cycle businesses in commercial aerospace, defense, and warehouse and process automation, and strong demand for commercial fire and security products. Our robust sales growth, supported by winning positions in attractive end markets and the continuous improvements we are making across our supply chain, drove earnings per share of $1.92, seven cents above the high end of our first-quarter guidance and up 13%1 excluding the impact of the spin-offs." said Darius Adamczyk, chairman and chief executive officer of Honeywell.
INDUSTRY SEGMENTS
Aerospace sales for the first quarter were $3.3 billion (1Q18: $4.0 billion). Sales were up 10% on an organic basis driven by robust demand from business aviation original equipment manufacturers, continued strength in the U.S. and international defense business, and growth in the commercial aviation aftermarket. Segment margin expanded 260 basis points to 25.1%, primarily driven by commercial excellence and the favorable impact from the spin-off of the Transportation Systems business.
Honeywell Building Technologies sales for the first quarter were $1.4 billion (1Q18: $2.4 billion). Sales were up 9% on an organic basis driven by strong demand for commercial fire and security offerings, and global building projects growth. Segment margin expanded 240 basis points to 19.5%, primarily driven by the favorable impact from the spin-off of the Homes and ADI Global Distribution business, partially offset by stranded cost impacts related to the spin, which the company intends to eliminate by the end of 2019 as planned, and unfavorable mix.
Performance Materials and Technologies sales for the first quarter were $2.6 billion (1Q18: $2.5 billion). Sales were up 5% on an organic basis driven by broad-based growth in automation projects and maintenance and migration services in Process Solutions, as well as continued demand for fluorine products. Segment margin expanded 140 basis points to 21.9%, primarily driven by higher sales volumes and commercial excellence.
Safety and Productivity Solutions sales for the first quarter were $1.6 billion (1Q18: $1.4 billion). Sales were up 10% on an organic basis driven by continued double-digit sales growth in the Intelligrated warehouse automation business, robust demand in sensing and IoT, and strong demand across China. Segment margin contracted 260 basis points to 13.4%, primarily driven by lower sales volumes in productivity products, impact of inflation, and unfavorable mix due to higher sales in Intelligrated, partially offset by commercial excellence.
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