The Morris Plains, N.J.-based company posted a fourth-quarter net loss of $2.41 billion, or $3.18 a share. Excluding a $3.8 billion tax provision, Honeywell reported adjusted earnings of $1.85 per share, which narrowly beat estimates of $1.84. Revenue of $10.84 billion for the period also surpassed forecasts calling for $10.77 billion.
"Fourth-quarter sales grew 6% organically, leading to full-year organic sales growth of 4%, driven by robust growth in aerospace aftermarket, UOP, advanced materials, and intelligrated," CEO Darius Adamczyk said in a statement.
For the full year, the maker of industrial products ranging from portable generators and thermostats to parts for business jets and helicopters posted earnings of $7.11 a share on revenue of $40.53 billion.
Shares of Honeywell rose about 1.3% to $163.95 at 11:30 a.m. EST on Friday, Jan. 26. The stock had fallen more than 1% in premarket trading before rebounding.
The company, with a market capitalization of $122 billion, also raised its profit guidance for the year ahead, now anticipating full-year earnings to be in the range of $7.75 to $8 a share, an increase from its previous guidance of $7.55 to $7.80. Revenue for 2018 is expected to be the range of $41.8 billion to $42.5 billion.
In addition to the guidance update, Adamczyk said that Honeywell expects to complete the spinoff of its homes and global distribution business and its transportation systems business.
"After the spins, these businesses will be better positioned to maximize shareowner value through focused strategic decision making and capital allocation tailored for their end markets," Adamczyk said.
Even as Honeywell works to complete those spin-offs by the end of this year, Chief Financial Officer Thomas Szlosek said the company will also repatriate at least $7 billion of cash held by foreign subsidiaries over the next two years, which could serve as the dry powder for M&A.
"This new global mobility of our cash allows us to continue investing in our businesses in the U.S., to pay competitive dividends, to more aggressively seek out M&A, particularly in the U.S.; and to repurchase our own shares," said Szlosek. "Our preference is for attractive bolt-on acquisitions and our core markets."
This story was updated at 11:30 a.m.
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