Honeywell (HON) Q1 Earnings Conference Call Highlights

Highlights from Honeywell's (NYSE: HON) Q1 Earnings Conference Call:

David Cote, Chairman and CEO, said:

• the earnings included over $100 million of repositioning actions. "That repositioning will help us some in 2008 and more fully in 2009."
  
• "we're really pleased with our first quarter performance, we remain confident in our outlook for the year, despite that tougher economic environment."
  
• Honeywell is well-positioned due to 1. diversity of its portfolio, 2. a portfolio balance between short and long-term cycles creates consistent financial performance, and 3. an increasing global presence.
  
• the Norcross Safety Products acquisition should be completed in Q2 and will not have a material impact on EPS in '08.

David Anderson, Senior Vice President and CFO, said:

• "the outlook for business jet continues to remain robust supported by the increasingly global nature of the industry..."
  
• Honeywell continues to "see softness in the North American residential markets" and also sees "evidence as expected of slowing in Europe in the same end markets."
  
• its ACS segment saw a 20% increase in profit and a 50 bps increase in margins to 10.3%
  
• "full-year numbers do not include the incremental impact of 2008 acquisitions", such as "the Norcross benefit or foreign exchange benefit."
  
• Aerospace and ACS are tracking in-line with Honeywell's expectations of "a stronger first half versus the second half of 2008".
  
• management sees Q2 sales and EPS of $9.2 billion and $0.92-$0.94, respectively.
  
• "we feel very confident about our plans to deliver our EPS guidance and very confident about the outlook for the remainder of the year."

Honeywell International, Inc. operates as a diversified technology and manufacturing company worldwide. [BCS]

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