Department of Energy contractor Honeywell on Thursday attributed a 15% drop in first-quarter revenue primarily to the spinoff of two business lines, saying organic growth was otherwise up by 8%.
Company-wide sales dropped from $10.4 billion in the first quarter of 2018 to $8.9 billion in the same period of 2019.
“The difference between reported and organic sales primarily relates to the spin-offs of the Transportation Systems business (formerly in Aerospace) and the Homes and ADI Global Distribution business (formerly in Honeywell Building Technologies) as well as the unfavorable impact of foreign currency translation,” according to the company’s earnings report.
Reported earnings per share snuck up by 2%, from $1.89 to $1.92. Honeywell reported a 13% year-over-year boost in adjusted earnings per share “ex-spins,” from $1.70 to $1.92.
The company’s business segments grew on an organic basis: Aerospace by 10%, Honeywell Building Technologies by 9%, Performance Materials and Technologies by 5%, and Safety and Productivity Solutions by 10%.
Based on the first-quarter results, Honeywell increased its sales projection for the year from a range of $36 billion to $36.9 billion to a range of $36.5 billion to $37.2 billion.
Honeywell is the owner or partner in contractors that manage four Department of Energy facilities:
- Honeywell Federal Manufacturing & Technologies, a Honeywell Subsidiary at the NNSA’s Kansas City National Security Campus in Missouri ($10 billion over 10 years, with options);
- National Technology and Engineering Solutions of Sandia, a Honeywell subsidiary at the NNSA’s Sandia National Laboratories in New Mexico ($2.6 billion over 10 years, with options);
- Mission Support and Test Services, a Honeywell-majority team with Jacobs and Huntington Ingalls at the NNSA’s Nevada National Security Site ($5 billion over 10 years, with options); and
- Savannah River Nuclear Solutions, a Honeywell-minority team with Fluor and Huntington Ingalls at the Savannah River Site in South Carolina ($10.5 billion over 11 years, with options). The DOE Environmental Management office owns this contract, which has been extended through July.
