Honeywell said today its third-quarter ongoing and reported earnings per share were U.S. $0.50 - up 14 percent compared to ongoing results in the third-quarter of 2001. Reported earnings were also up significantly as repositioning and other charges resulted in a reported loss of ($0.38) in the same period of last year.
Free cash flow in the quarter was a record $608 million, up 72 percent compared to $353 million in the third-quarter of 2001. Through the first three quarters of 2002, the company generated approximately $1.5 billion in free cash flow, compared to approximately $800 million during the same periods of last year.
"Our businesses are running well even in this difficult economy. We delivered 14 percent higher earnings per share and approximately $300 million in cost productivity in the quarter, reflecting our intense focus on cost structure improvements," said Honeywell Chairman and CEO Dave Cote. "Through the first three quarters we surpassed the full year total of free cash flow in 2001, largely due to improvements in working capital turnover and maintaining a disciplined approach toward capital expenditures. We will continue to take the necessary cost and portfolio actions to strengthen Honeywell to compete in this weakened economy and to grow when our end-markets recover."
"Automation & Control Solutions posted another strong quarter of cost productivity and delivered double-digit year-over-year segment profit growth even as revenues were flat, excluding divestitures, because of continued weakness in capital spending and industrial production," Mr. Cote added. "Specialty Materials saw modest growth despite a stalled recovery and the disposition of Pharmaceutical Fine Chemicals as revenues increased in Electronic Materials, Specialty Chemicals and Spectra® fiber."
Automation and Control Solutions also today announced it had completed its previously announced acquisition of Invensys Sensor Systems, a global supplier of sensors and controls.
"The acquisition of Invensys Sensor Systems strengthens our sensing business, particularly in the high-growth medical and automotive-on-board segments," said Cote. "Our Automation and Control Products business will now have a broader product portfolio, a wider customer base and exciting new sensing technologies."
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