19 July 2013 13:34 [Source: ICIS news]
HOUSTON (ICIS)--Honeywell’s second-quarter profit in its performance materials and technologies segment fell 9% year on year to $320m (€243m), mainly because of lower licensing sales in the company's UOP petrochemicals business, the US-based industrial and technologies group said on Friday.
In addition, the segment saw a decline in advanced material volumes, and the acquisition last year of a natural gas processing and treatment equipment firm had a dilutive impact on second-quarter results, Honeywell said.
The segment’s margin fell to 19.0%, from 22.6% in the 2012 second quarter.
However, sales in the performance materials and technologies segment for the three months ended 30 June rose 9% year on year to $1.68bn, driven by higher UOP petrochemical catalyst shipments and equipment sales, as well as the acquisition, the company said.
Overall, Honeywell recorded a 3% year-on-year increase in sales to $9.7bn in the second quarter.
Second-quarter net income was $1.02bn, up from $902m in the 2012 second quarter. The overall segment margin for Honeywell’s four businesses was 16.1%, up from 15.8% in the 2012 second quarter.
“Honeywell had another good quarter and a strong first half of 2013,” said chairman and CEO Dave Cote.
“Despite operating in a slow growth macro environment, we saw good organic growth in ACS's [automaton and control solutions] Energy, Safety and Security business and in Turbo Technologies, both of which continue to outgrow the key end markets in which they compete”, Cote said.
“Our long-cycle businesses, including Commercial Aerospace, Process Solutions, and UOP, also continue to perform well, benefitting from favourable macro-trends, winning new contracts, and maintaining a strong backlog, which currently stands at $15.5bn,” he said
“We remain focused on seed planting, funding cost savings initiatives across the portfolio, and remaining flexible given the continued uncertain global economic outlook,” he added.
As a result of its performance so far this year, Honeywell raised the low-end of its 2013 full-year earnings-per-share guidance by 5 cents to $4.85/share, “with the expectation of modestly improved organic growth and continued margin expansion in the second half outlook," ?xml:namespace>
In addition to performance materials and technologies, Honeywell’s business segments include aerospace, automation and control systems, and transportations systems.
($1 = €0.76)
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