Reporter Li Zhe reports from Beijing.
On Feb. 4, Honeywell (NASDAQ**:HON) announced its fourth-quarter and full-year 2023 results.
A reporter from China Business News learned from Honeywell that the company will achieve 366 in 2023$6.2 billion in sales, up 3% year-over-year; Operating income increased 10% and operating margin increased 120 basis points. Full-year earnings per share were 8$47, adjusted earnings per share of 9$16.
"As we look ahead to 2024, our portfolio is expected to accelerate our operating and earnings growth, supported by three trends: automation, future aviation and energy transition," said Honeywell Chief Executive Officer. ”
Full-year revenue increased by 10%.
According to the financial report, Honeywell's fourth-quarter sales were $9.4 billion, an increase of 3% year-on-year, of which the organic sales of the commercial aviation business achieved double-digit growth again. Meanwhile, Honeywell's operating margin fell 290 basis points to 168 percent, with segment margin up 60 basis points to 235%。Honeywell said this was mainly due to the growth achieved by Honeywell Performance Materials and Technologies Group and Aerospace Group. Honeywell reported earnings per share of 1$91, up 26% year-over-year, and adjusted earnings per share of 2$60, up 3% year-over-year. Operating cash flow reached $3.0 billion and operating cash flow margin margin of 313% to $2.6 billion in free cash flow and free cash flow margin of 27.3% due to lower working capital4%。
Based on the performance of the fourth quarter of 2023, Honeywell achieved 366$6.2 billion in sales, up 3% year-over-year; Operating income increased 10% and operating margin increased 120 basis points. Full-year earnings per share were 8$47, adjusted earnings per share of 9$16.
According to the financial report data, as of the end of 2023, Honeywell's total assets are 6152.5 billion US dollars, down 120%。In terms of debt, Honeywell's accounts payable increased by 8. year-over-year in 202322%, and long-term debt increased by 9% year-on-year52%。
Specifically, in Honeywell's business mix, air transport business, urban building technology, and performance materials related businesses increased by 15 percent year-on-year89%，4.59%，8.28%。The security business fell 16 percent year-on-year57%。
Honeywell also implemented capital deployment priorities in the fourth quarter of 2023, deploying $2.6 billion in cash flow for buybacks, dividends and high-return capital expenditures, Mr. Ke said. For the full year 2023, capital allocation totaled $8.3 billion.
The reporter learned from Honeywell that the current undelivered order volume remains at a record level, increasing by 8% to $31.8 billion by the end of 2023. Honeywell said that this provides strong support for the company's performance outlook, the long-cycle market remains strong, and the recovery of the short-cycle market is expected to further boost Honeywell's performance.
Growth is expected to be 4% to 6% in 2024
In 2024, Honeywell expects sales of $38.1 billion to $38.9 billion, up 4% to 6% year-over-year; Adjusted earnings per share were 980 to 10$10, up 7% to 10% year-on-year; Operating cash flow was $6.7 billion to $7.1 billion and free cash flow was $5.6 billion to $6.0 billion.
"Looking ahead to 2024, our portfolio is expected to accelerate our operating and earnings growth, supported by three trends: automation, future aviation and energy transition. ”
The reporter noted that on December 13, 2023, Honeywell announced plans to start with 49$500 million in cash to acquire Global Access Solutions from Carrier Global (NYSE**:Carr) to enhance the company's building automation capabilities.
Strengthened building automation capabilities with the $5 billion acquisition of Carrier's global security business, making it one of the leading providers of security solutions. This will create a leading security business platform with an estimated annual revenue of more than $1 billion. "The combined company will leverage advanced security and safety system capabilities to help customers improve performance, efficiency and cost-effectiveness, and create long-term, sustainable value." We expect to accelerate our capital deployment strategy following the completion of the acquisition of Security Solutions next year. ”
At present, China is promoting the adjustment of energy structure. In this regard, Yu Feng, President of Honeywell China, said: "The 'dual carbon' goal not only brings emission reduction challenges to industries with high energy consumption, especially high carbon dioxide emissions, but also breeds development potential for technological innovation and application, and provides new impetus and opportunities for upstream and downstream enterprises in the first chain to strengthen sustainable development practices." ”
In addition, Honeywell said that in the context of China's vigorous promotion of the deep integration of digital technology and the real economy and the promotion of green transformation of development mode, Honeywell will continue to develop products and technologies that meet customer needs, focus on the three key trends of automation, future aviation and energy transition, and work with Chinese customers and partners to achieve low-carbon, efficient, safe, healthy and high-quality sustainable development.
Editor: Dong Shuguang Proofreader: Yan Jingning).