Honeywell International (HON) has reported a 9.05 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $1,326 million, or $1.71 a share in the quarter, compared with $1,216 million, or $1.56 a share for the same period last year.
Revenue during the quarter went down marginally by 0.32 percent to $9,492 million from $9,522 million in the previous year period. Gross margin for the quarter expanded 179 basis points over the previous year period to 33.04 percent. Total expenses were 81.17 percent of quarterly revenues, down from 82.20 percent for the same period last year. This has led to an improvement of 103 basis points in operating margin to 18.83 percent.
Operating income for the quarter was $1,787 million, compared with $1,695 million in the previous year period.
"Honeywell reported a strong start to 2017, with over 2 percent organic sales growth, 70 basis points of segment margin expansion, and free cash flow of nearly $800 million that was more than six times greater than 2016. Our strong operational performance resulted in reported earnings per share of $1.71. Normalizing for tax, earnings per share was $1.66, or 2 cents above the high-end of our first-quarter guidance and up 11 percent versus last year, excluding divestitures," said Darius Adamczyk, President and Chief Executive Officer of Honeywell.
For financial year 2017, the company forecasts diluted earnings per share to be in the range of $6.90 to $7.10.
Operating cash flow improves significantly
Honeywell International has generated cash of $940 million from operating activities during the quarter, up 194.67 percent or $621 million, when compared with the last year period.
The company has spent $604 million cash to meet investing activities during the quarter as against cash outgo of $1,196 million in the last year period. It has incurred net capital expenditure of $144 million on net basis during the quarter, down 25.39 percent or $49 million from year ago period.
The company has spent $618 million cash to carry out financing activities during the quarter as against cash outgo of $223 million in the last year period.
Cash and cash equivalents stood at stood at $7,710 million as at Mar. 31, 2017.
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