US Honeywell Q1 chem segment profit rises 12% on higher volumes

20 April 2012 13:47  [Source: ICIS news]

HOUSTON (ICIS)--Honeywell’s first-quarter profit in its performance materials and technologies segment rose 12% year on year to $319m (€242m), mainly due to higher volumes, the diversified US-based industrial firm said on Friday.

Honeywell said that the segment's sales for the three months ended 31 March rose 19% year on year to $1.6bn.

Honeywell’s UOP petrochemicals catalysts business had strong sale during the quarter, the company said.

In addition, the acquisition of a phenol plant also contributed to the quarter’s sales growth.

However, Honeywell saw softer demand in Asia and Europe for its specialty products, it said.

The segment’s margin fell to 19.8%, from 21.0% in the 2011 first quarter, because of a dilutive impact from the phenol plant acquisition, the company said.

“This [margin] is better than expected performance due to less price/raws headwinds than originally planned,” the company added.

In addition to the UOP business, the segment includes a range of chemical products and intermediates, such as ammonium nitrate, caprolactam, nylon 6, advanced fibres and refrigerants, among others.

Honeywell is focused on aerospace, automation and control, transportation systems, and performance materials and technologies.

Honeywell’s overall first-quarter sales rose 7% year on year to $9.3bn. Earnings per share from continuing operations rose 21% to $1.04.

($1 = €0.76)

By: Stefan Baumgarten
+1 713 525 2653

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