Honeywell has announced full-year 2008 sales increased 6 percent to US$36.6 billion from US$34.6 billion in 2007. Earnings per share were up 19 per cent to $3.76 versus $3.16 in the prior year.
Fourth quarter sales were US$8.7 billion versus US$9.3 billion in 2007. Earnings per share were 97 cents versus 91 cents in the prior year fourth quarter. Cash flow from operations was $1.3 billion (US) and excluding CS taxes, free cash flow was $1.1 billion (US). Fourth quarter free cash flow conversion was 155 per cent of net income, excluding the CS taxes.
“Having great positions in good industries combined with strong execution drove Honeywell’s performance and growth in a tough 2008 economic environment,” said Honeywell Chairman and CEO Dave Cote. “Our key initiatives, including the Honeywell Operating System, Velocity Product Development and Functional Transformation, are working, and we’re a much stronger company today because of their ongoing global implementation. In 2008, we were awarded large multi-year contracts and continued to be a strong cash generator. We also made acquisitions to bolster our portfolio, completed meaningful share repurchases, and increased the dividend rate.
“2009 will be a more challenging year,” added Cote. “However, the actions we’ve taken over the past several years will benefit us in this economic downturn and have made Honeywell a more efficient, innovative and productive company. We are well positioned and confident in our ability to outperform in 2009 and over the long-term.”
Honeywell also reaffirmed its previously stated 2009 earnings per share guidance of $3.20 to $3.55 (US).