Honeywell, which through its Federal Services division is a member of four prime contractors for the Department of Energy’s defense nuclear enterprise, said Friday it raked in more sales in a strong quarter than benefited in part from a onetime tax benefit.
Third-quarter sales at the parent company rose about 5 percent to a little under $8.5 billion, while net earnings rose to almost $1.9 billion, or a little more than $3.10 a share: nearly an 80-percent increase from the 2017 quarter, Honeywell said in its latest 10-Q filing with the U.S. Securities and Exchange Commission.
The tax benefit of about $500 million was related to the tax reform law Congress passed in late 2017, Honeywell said.
Honeywell does not report segment earnings for Federal Services, which manages four contracts for the Department of Energy. Three of these contracts are with the agency’s National Nuclear Security Administration (NNSA), which runs nuclear weapons programs; the fourth is with the DOE Office of Environmental Management: steward of the nation’s Cold War nuclear-weapons cleanup program.
Federal Services contracts include:
- 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 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 Environmental Management office owns this contract.
