April 23 : Honeywell on Thursday posted higher first-quarter sales, helped by higher pricing, new product launches and strong demand in its Building and Industrial Automation segments.
The industrial giant said higher pricing, along with the earlier-than-anticipated removal of stranded costs related to the planned spin-off of Honeywell Aerospace, more than offset cost inflation.
The company is gearing up for the breakup of its large conglomerate structure into three independent companies focused on automation, aerospace and advanced materials.
Honeywell also carried out various divestitures to streamline its sprawling business footprint ahead of the three-way split of its operations. On Thursday, the company also announced the sale of its Warehouse and Workflow Solutions (WWS) business in an all-cash transaction to American Industrial Partners, and last week agreed to sell its productivity solutions and services unit to industrial equipment maker Brady in an all-cash deal worth $1.4 billion.
It now expects the spin-off of Honeywell Aerospace to be completed on June 29, 2026.
U.S. manufacturers have faced an inflationary environment, with higher raw material and energy costs exacerbated by the ongoing Middle East conflict.
Last month, Honeywell warned that disruptions to shipments into the Middle East could push some revenue it expected to recognize in the first quarter later into the year, even if demand stayed intact.
The company’s Process Automation and Technology segment was hit by war-related disruptions, including aftermarket declines from shipment and upgrade delays, flat projects as liquefied natural gas strength was offset by automation delays, and a broader slowdown in Middle East activity.
Segment sales fell 6 per cent from a year ago.
Quarterly sales in Honeywell’s largest segment, Aerospace Technologies, also grew, with orders rising 6 per cent compared with the previous year.
Honeywell’s total first-quarter sales grew 2 per cent from a year ago to $9.14 billion.
For the quarter ended March 31, adjusted profit rose 11 per cent to $2.45 per share.