Energy Department contractor Honeywell on Friday reported 3 percent organic sales growth in the second quarter of 2017, with total net sales reaching $10.1 billion, up slightly from $10 billion during the same quarter of last year.
The company reported a 10 percent year-over-year increase in earnings and earnings per share of $1.80 in the quarter. It said in an earnings release that earnings per share for the full year are anticipated to be between $7 and $7.10, or 8-10 percent above last year’s guidance of $6.90-$7.10.
The release also noted expected full-year sales of $39.3 billion to $40 billion, up from last year’s guidance of $38.6 billion to $39.5 billion.
Sales in the company’s aerospace branch were up 2 percent on an organic basis (but down 3 percent on a reported basis), which the company attributed in part to growth in U.S. defense sector work – specifically deliveries related to the Air Force’s F-35 fighter jet program. The business segment reported $3.7 billion in net sales, down from $3.8 billion from the same quarter last year, but segment profit of $819 million, up from $791 million.
The aerospace business segment covers Honeywell’s work with the Energy Department; company executives did not offer details during a Friday earnings call about the business impact of recent DOE contract wins.
A Honeywell subsidiary last December won the contract for management and operations of DOE’s Sandia National Laboratories, a deal worth $2.6 billion per year over a decade, with all options. The contractor has been on the job since May.
A Honeywell-led team in May also won the M&O contract at the Nevada National Security Site. The National Nuclear Security Administration announced last week that two bid protests filed after the award announcement have been withdrawn and that transition activities to the incoming management team will resume Aug. 1.
Another Honeywell subsidiary, Honeywell Federal Manufacturing & Technologies, manages the Kansas City National Security Campus in Missouri, the site that produces non-nuclear components used in nuclear weapons. Honeywell is also a partner in Savannah River Nuclear Solutions, the contractor that manages DOE’s Savannah River Site in South Carolina.
