Honeywell (HON) - Get Report on Friday reported fourth-quarter adjusted earnings and sales that beat analysts’ forecasts as double-digit growth in sales of its warehouse automation and PPE products and services offset a drop in aerospace revenue.
Honeywell posted net income of $1.36 billion, or $1.94 a share, vs. $1.59 billion, or $2.16 a share, in the comparable year-ago period. On an adjusted basis, the company earned $2.07 a share, above the $2 a share expected by analysts polled by FactSet.
Sales came in at $8.9 billion, down 6% from $9.5 billion a year ago though above analysts’ forecasts of $8.4 billion. Aerospace sales, which include parts for commercial airplanes, fell 19% year over year, driven by lower demand for commercial aircraft fueled by reduced flight hours and lower volumes among carriers due to the pandemic and drop-off in travel.
That was offset, however, by a 27% gain in “safety and productivity solutions” sales, driven by double-digit sales in its defense and space, warehouse automation and personal protective equipment lines of business. Backlog remained at a record high, Honeywell said.
"We finished a challenging 2020 with another quarter of sequential improvements in sales growth, margin expansion, and adjusted earnings per share," CEO Darius Adamczyk said in a statement, noting that the company continues to focus on cost-cutting, bringing full-year total fixed cost savings to $1.5 billion.
Honeywell ended 2020 with $15.2 billion of cash and short-term investments on hand.
For 2021, the company expects adjusted per-share earnings of between $7.60 and $8 on sales of between $33.4 billion and $34.4 billion.
Analysts expect 2021 earnings of $7.84 a share on sales of $33.91 billion.
Shares of Honeywell were down 2.23% at $198.32 in trading on Friday.