"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.

Source:  Forecast International Government & Industry Group
Associated URL: www.honeywell.com
Author: R. Pettibone, Gov't & Industry  

"Our results in the quarter were driven by growth and performance at Aviation and continued strong execution at Bell, which resulted in significant margin improvements at those segments," said Textron Chairman and CEO Scott C. Donnelly.

In the quarter, Textron returned $202 million to shareholders through share repurchases.

INDUSTRIAL SEGMENTS

Textron Aviation

Revenues at Textron Aviation of $1.1 billion (1Q18: $1.0 billion) were up 12%, primarily due to higher volume and mix across the jet and commercial turboprop product lines.

Textron Aviation delivered 44 jets, up from 36 last year, and 44 commercial turboprops, up from 29 last year.

Segment profit was $106 million in the first quarter, up from $72 million a year ago, due to the higher volume and favorable performance.

Textron Aviation backlog at the end of the first quarter was $2.0 billion, up $204 million from year-end.

Bell

Bell revenues were $739 million 1Q18: $752 million) , down 2% from last year, primarily on lower commercial volume.

Bell delivered 30 commercial helicopters in the quarter, down from 46 last year.

Segment profit of $104 million was up $17 million, primarily due to favorable performance.

Bell backlog at the end of the first quarter was $6.3 billion, up $459 million from year-end.

Textron Systems

Revenues at Textron Systems were $307 million, down from $387 million last year, reflecting lower TAPV deliveries at Textron Marine & Land Systems and lower Unmanned Systems volume.

Segment profit was down $22 million from last year’s first quarter, reflecting lower volume and lower net favorable program adjustments.

Textron Systems’ backlog at the end of the first quarter was $1.4 billion, down $62 million from year-end.

Industrial

Industrial revenues of $912 million decreased $219 million (1Q18: $1.13 billion), largely related to the impact from the disposition of our Tools & Test product line and lower volume.

Segment profit was down $14 million from the first quarter of 2018, largely due to the impact from the product line disposition and lower volume, partially offset by favorable performance primarily related to the Specialized Vehicles product line.

Finance

Finance segment revenues were up $1 million to $17 million for the quarter, and profit was flat with last year’s first quarter at $6 million.

Source:  Forecast International Government & Industry Group
Associated URL: forecastinternatonal.com
Author: R. Pettibone, Gov't & Industry  

Work will be performed primarily in King of Prussia, Pennsylvania; and Hill Air Force Base, Utah, and is expected to be complete by June 4, 2030.

Fiscal 2019 operations and maintenance funds in the amount of $7,818,298 are being obligated on the first task order at the time of award.

Air Force Nuclear Weapons Center, Hill AFB, Utah, is the contracting activity (FA8214-19-D-0001).

Source:  US Air Force
Associated URL: af.mil