Morris Plains, NJ-based manufacturing conglomerate Honeywell reported its 2017 fourth quarter and full year fiscal results on Friday, which was led by solid organic sales growth. The company posted Q4 total sales of $10.84 billion, up 8.6 percent year-over-year (YoY), with organic sales up approximately 6 percent. The company took a net loss of $2.41 billion in Q4, compared to a $1.05 billion profit a year earlier, while operating profit of $1.72 billion increased 6.4 percent.
For the full year, Honeywell's 2017 sales of $40.53 billion increased 3.1 percent from 2016, with organic sales up by approximately 4 percent. Total profit of $1.70 billion compared with $4.81 billion in 2016, while 2017 operating profit of $7.15 billion increased 7.0 percent.
By business segment:
- Aerospace Q4 sales of $3.90 billion increased 6.4 percent YoY, with organic sales up approximately 5 percent and profit of $839 million up 20.8 percent. Full-year sales of $14.78 billion were flat compared to 2016, with organic sales up 2 percent and profit of $3.29 billion up 9.9 percent.
- Home and Building Technologies Q4 sales of $2.62 billion increased 5.1 percent YoY, with organic sales up 3 percent and profit of $461 million up 2.7 percent. Full-year sales of $9.78 billion increased 3.0 percent, with organic sales up 2 percent and profit of $1.65 billion up 1.8 percent.
- Performance Materials and Technologies Q4 sales of $2.85 billion increased 12.4 percent, with organic sales up 9 percent and profit of $852 million up 3.4 percent. Full-year sales of $10.34 billion dipped 0.9 percent, with organic sales up 8 percent and profit of $2.21 billion up 4.5 percent.
- Safety and Productivity Solutions Q4 sales of $1.47 billion jumped 14.0 percent, with organic sales up 12 percent and profit of $231 million up 24.9 percent. the company said the sales surge was driven by double-digit organic gains at warehouse automation subsidiary Intelligrated, which it acquired in Q3 2016 for $1.5 billion. Higher volumes in industrial safety products, sensing controls and voice-enabled workflow solutions also boosted sales. Full-year sales of $5.64 billion jumped 21.9 percent, with organic sales up 5 percent and profit of $852 million up 25.3 percent.
"Honeywell’s transformation to a software-industrial leader is well underway, and in 2018, we expect to complete the spin-offs of our Homes and Global Distribution business, and our Transportation Systems business, which will position Honeywell for future growth and margin expansion," company president and CEO Darius Adamczyk said. "After the spins, these businesses will be better positioned to maximize shareowner value through focused strategic decision making and capital allocation tailored for their end markets,” Adamczyk said.