Honeywell Q4 chemicals unit profit down 6% to $210m

25 January 2013 13:06  [Source: ICIS news]

LONDON (ICIS)--Honeywell reported a 6% fall in net profit year on year for its Performance Materials and Technologies division during the fourth quarter of 2012 to $210m (€158m), the US industrial group said on Friday.

The drop was driven by unfavourable pricing conditions in the resins and chemicals sectors, challenging end market conditions, and lower catalyst sales for Honeywell’s UOP subsidiary, the company added.

Full-year profits for the division were up slightly at $1.15bn for 2012, compared with $1.04bn the previous year.

Sales for the three months ended 31 December rose 8% year on year to $1.55bn, buoyed by UOP’s acquisition of a 70% stake in natural gas processing and treatment equipment firm Thomas Russell in October 2012. These gains were partially offset by lower sales volumes of petrochemical and refining catalysts, the company added.

The division's sales for 2012 were up 9% to $6.18bn, compared with $5.66bn in 2011.

The segment margin for the Performance Materials and Technologies division contracted by 200 basis points to 13.6% during the fourth quarter, as a result of pricing and end market conditions, but expanded 30 basis points for the year to 18.7%

In addition to the UOP business, which specialises in the manufacture and supply of petrochemical technologies, Honeywell's performance materials unit includes a range of chemical products and intermediates, including ammonium nitrate, caprolactam, nylon 6 (or polyamide 6), advanced fibres and refrigerants.

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

The group's overall fourth-quarter net income swung to $251m from a $310m loss in the fourth quarter of 2011, while 2012 full-year profit increased to $2.93bn from $2.07bn in 2011.

($1 = €0.75)

By: Tom Brown
+44 208 652 3214

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