Honeywell International (NYSE:HON) slid on reporting strong earnings for for the first quarter of 2020 despite significant impacts from the COVID-19 pandemic.
The industrial giant, based in Charlotte, North Carolina, reported first-quarter earnings per share of $2.21, above guidance, operating profit growth of 3%, segment profit growth of 2%, and segment margin expansion of 140 basis points, all of which were at or above first-quarter guidance, with sales down 5%, or 4% organically.
According to CEO Darius Adamczyk, “Honeywell delivered on our original earnings commitment for the first quarter, with EPS growth of 15% despite the substantial challenges we faced due to the COVID-19 pandemic.
“We remain focused on the strong operational excellence principles that underlie everything we do, and that discipline enabled us to achieve earnings growth in a challenging first quarter.”
Aerospace sales for the first quarter were up 1% on an organic basis driven by continued strength in the Defense and Space business and growth in air transport commercial aftermarket, partially offset by lower air transport original equipment demand.
Segment margin expanded 280 basis points to 27.9%, primarily driven by favorable sales mix and commercial excellence.
Honeywell Building Technologies sales for the first quarter were down 6% on an organic basis as flat sales in commercial fire were offset by softness in building solutions projects and volume declines in security and building management products.
Segment margin expanded 100 basis points to 20.5%, primarily driven by commercial and operational excellence.
HON shares began Friday down $4.91, or 3.5%, to $136.99