Honeywell announced second quarter 2009 sales of US$7.6 billion versus US$9.7 billion in the second quarter of 2008 and earnings of US$0.60 per share, compared to US$0.96 per share in the second quarter last year. Cash flow from operations was US$1,126 million versus US$1,042 million in the second quarter of 2008 and free cash flow (cash flow from operations less capital expenditures) was $1,009 million, compared to $853 million in the second quarter of last year.
“Honeywell had good second quarter performance in a tough environment,” said Honeywell chairman and CEO Dave Cote. “We are particularly pleased with our strong free cash flow conversion performance, which reflects our emphasis on effectively managing working capital in these very dynamic market conditions…We continue to invest in new products and services that will help strengthen our great positions in good industries and prepare Honeywell for growth when the economy rebounds.”
In its transportation systems division sales were down 41 per cent, compared with the second quarter of 2008, resulting from lower volumes and the negative impact of foreign exchange. Turbo Technologies was awarded contracts estimated at more than US$500 million in revenue over the life of these new platforms. The contracts include new technology solutions for downsized gasoline and small diesel passenger vehicle engines and large on-road commercial applications. The engines will be produced for the European, U.S., and Japanese markets beginning in 2011. Honeywell also launched its new variable geometry turbocharger on the latest Volkswagen Golf TDI, which is now on sale in Europe.
Honeywell expects full-year 2009 sales of approximately US$31.5 billion and earnings of approximately US$2.85 per share, which is at the low end of the company’s previously stated earnings range.