Manufacturing conglomerate Honeywell reported its 2019 fourth quarter and full-year financial results on Jan. 31, showing that while overall Q4 organic sales were up 2 percent year-over-year, sales in its Safety & Productivity Solutions segment had a considerable decline.
The Charlotte, NC-based company posted total Q4 sales of $9.50 billion, down 2.3 percent year-over-year (YoY), with organic sales up approximately 2 percent. The difference in those reportings is due primarily to Honeywell's 2018 spin-off of its former Homes and ADI Global Distribution business. Segment margin increased 130 basis points to 21.4 percent and operating margin jumped 220 points to 17.8 percent, while operating profit of $1.7 billion increased 11.5 percent and total profit of $1.59 billion decreased 8.7 percent.
Organic sales increased in three of Honeywell's four ongoing business segments, with Safety & Productivity as the lone declining segment. Q4 sales in the Safety & Productivity segment totaled $1.52 billion, down 10.7 percent YoY, with organic sales down approximately 11 percent. The company said the decline was driven by the impact of major systems project timing in Honeywell Intelligrated Solutions; lower sales volumes in productivity products and lower demand for personal protective equipment. Segment margin contracted 330 basis points to 12.7 percent YoY and profit sunk approximately 29 percent, primarily driven by lower sales volumes in productivity products and mix of sales. For the full year, Safety & Productivity 2019 sales of $6.1 billion decreased 3.7 percent, with organic sales down approximately 4 percent and segment down approximately 23 percent.
Honeywell's largest business segment, Aerospace, had Q4 sales of $3.66 billion, up 6.8 percent YoY, with organic sales up approximately 7 percent and profit up 19 percent. Full-year 2019 sales of $14.05 billion decreased 9.3 percent, with organic sales up approximately 9 percent.
Honeywell Building Technologies segment Q4 sales of $1.46 billion decreased 18.8 percent YoY, with organic sales up approximately 3 percent and profit down approximately 11 percent. Full-year 2019 sales of $5.72 billion down 38.5 percent, with organic sales up approximately 5 percent.
Honeywell's Performance Materials and Technologies segment Q4 sales of $2.86 billion increased 2.0 percent YoY, with organic sales up approximately 3 percent and profit down approximately 1 percent. Full-year 2019 sales of $10.83 billion increased 1.5 percent, with organic sales up approximately 4 percent.
Providing its 2020 outlook, Honeywell is expecting total sales of between $36.7 billion to $37.8 billion, representing organic growth of flat to 3 percent.
