Morris Plains, NJ-based manufacturing conglomerate Honeywell reported its 2018 first quarter fiscal results on Friday, which showed continued year-over-year (YoY) sales gains across the board, though gains in its Safety segment slowed compared to Q4 2017.
The company posted Q1 total sales of $10.39 billion, up 9.5 percent YoY, with organic sales up approximately 5 percent. That compares with Q4's total sales growth of 8.6 percent and organic growth of approximately 6 percent. The company posted a total Q1 profit of $1.45 billion compared with $1.33 billion a year earlier.
By business segment in Q1:
- Aerospace sales of $3.98 billion increased 12.2 percent YoY, with organic sales up approximately 8 percent. Segment profit of $893 million increased approximately 12 percent, while segment margin of 22.4 percent decreased 10 basis points.
- Home and Building Technologies sales of $2.43 billion increased 7.2 percent YoY, with organic sales up approximately 2 percent. Segment profit of $416 million increased approximately 10 percent, while margin of 16.6 percent decreased 50 basis points.
- Performance Materials and Technologies sales of $2.53 billion increased 7.7 percent YoY, with organic sales up approximately 3 percent. Segment profit of $519 million increased approximately 7 percent, while margin of 20.5 percent was unchanged.
- Safety and Productivity Solutions sales of $1.45 billion increased 9.4 percent YoY, with organic sales up approximately 6 percent. That compares with Q4 2017's sales gain of 14 percent and organic gain of 12 percent. Q1 segment profit of $231 million jumped approximately 19 percent, while margin of 14.7 percent fell 130 basis points. The organic gain was driven by strong organic sales and volume growth at warehouse automation subsidiary Intelligrated, with Snap-on acquired in Q3 of 2016 for $1.5 billion. Higher volumes in Sensing also drove organic growth.
"We are making great progress in transforming Honeywell into a software-industrial leader," said Honeywell president and CEO Darius Adamczyk. "In the first quarter, we had significant new Connected product launches and commercial wins across our portfolio. The preparations to spin-off our Transportation Systems and Homes businesses are well underway, and we expect those to be complete by the end of the year. This is an exciting time to be a customer, shareowner, or employee of Honeywell, and I am confident in our ability to continue to outperform."