Business
Honeywell Reports EPS Of $1.53, Adjusted EPS Of $1.26; Delivers $1.5 Billion Of Operating Cash Flow
- Delivered $500 Million of Cost Savings in the Quarter; Funded Over $250 Million of Repositioning to Drive Further Savings in Second Half and 2021 -
About this update from Honeywell International Inc.
[{"type":"text","content":"- Delivered $500 Million of Cost Savings in the Quarter; Funded Over $250 Million of Repositioning to Drive Further Savings in Second Half and 2021\n - Generated $1.5 Billion of Operating Cash Flow, $1.3 Billion of Free Cash Flow, Adjusted Conversion(1) of 140%; Further Strengthened Balance Sheet\n - Reported Record High Orders and Backlog in Safety and Productivity Solutions Driven by Triple-Digit Growth in Intelligrated and Personal Protective Equipment\n - Launched Numerous Innovative Healthy Offerings to Address COVID-19-Related Customer Needs\n\n\n\n CHARLOTTE, N.C., July 24, 2020 /PRNewswire/ -- Honeywell (NYSE: HON) today announced results for the second quarter of 2020, which were significantly impacted by the COVID-19 pandemic and oil price volatility.\n\n \n The company reported a second-quarter sales decline of 19%, down 18% organic, operating margin contraction of 550 basis points, and segment margin contraction of 280 basis points, with adjusted earnings per share2 of $1.26.\n\"The second quarter was a challenging one, but we executed on the three things that will enable us to weather this downturn: aggressively managing cost, driving sales growth where demand is strong, and investing in exciting new technologies that, through careful attention to customer and end-user needs, will help keep people safe when they get back to the workplace, back to play, back to travel, and back to life,\" said Darius Adamczyk, chairman and chief executive officer of Honeywell. \n\"In terms of cost management, we delivered $500 million in savings from the first phase of cost actions we announced earlier this year, and we funded over $250 million of repositioning in the quarter. In addition, we developed a second phase of cost actions that, when combined with our previously announced plan, will generate $1.4 billion to $1.6 billion of cost savings during 2020. We further enhanced our financial flexibility this quarter by issuing $3 billion of bonds at attractive rates, reducing our term loan from $6 billion to $3 billion, and fully drawing the remaining balance. We ended the quarter with $15.1 billion of cash and short-term investments on hand and an overfunded pension plan,\" Adamczyk said.\n\"We also remain focused on driving sales growth in areas that have not been as impacted by the current downturn. In the second quarter, our busi...