Aerospace was the strongest business segment with sales up 18% year over year. Energy-related sales grew 5%. Industrial automation and building automation sales fell 13% and 3% year over year, respectively.
Thoughts?
15 replies (most recent on top)
I still see a merger coming of Aerospace. They probably merged with GE aerospace. If this was going to happen, I would expect GE to be the parent company.
If it wasn’t for Aerospace, Honeywell would be in some serious trouble with investors. I really believe in sometime in the future. Honeywell will be no more. Because GE will own aerospace business.
You know imagine how much money the investors are gonna make of this deal. Since most of our management have stock options, they have no problem eliminating our jobs.
It’s probably explains why they’re hiring a fourth and fifth shift. They’re also hiring a third shift.
They’re going to make up for the backlogs.
Looks like it won't be long before VK lives up to his last name - Kaput.
What are warehouse and workflow solutions? In IA
Large portion of Aero backlog is because parts aren't available. Not good. Guessing the nosedive was also due to government disclosure of charges this week against individuals who illegally procured TFE engines and parts for Venezuela from Honeywell. Honeywell wasn't named as doing anything illegal, but that type of news is never good publicity.
https://www.justice.gov/opa/pr/ten-charged-and-one-arrested-connection-sanctions-evasion-scheme
Projected earnings for the whole year are 39billion. So unless we get the majority of orders in Q1, it’s probably unfulfilled orders from last year….or worse.
Context is everything. If the backlog is a result of new orders, it's good. If the backlog is a result of failures to fulfill existing orders, it's bad. I suspect that this backlog is bad.
Explain like I am 5 - 32billion in backlog is bad, right?
Most accurate summary I’ve seen here
IA: Margin contraction due to volume leverage and cost inflation ( we put the prices up to offset lower sales and now customers are buying even less), partially offset by productivity actions and commercial excellence. (We riffed our brightest and best, furloughed staff and delayed salary increases).
IA performance is poor across the SBU’s. Overall Sales are down 13% and margin contraction of 16.8%. Warehouse and workflow solutions looks like it’s fallen off a cliff (-55%). Expect some big changes ahead. For those working in IA, expect more misery.
I don't know about Aerospace but Industrials had been struggling with incorporating newer technologies across the board! They tried digital transformation in 2019 but failed miserably. They had 5 GM changes in 2 years and ended up rehiring the same su---r who failed at the beginning! They have fired/lost all talented SMEs and intelligent people due to a lack of leadership, vision, and strategy!
Now you tell me, how do you expect them to sell more? Industrial automation is a massive failure at HON. Just run away.
Breakdown HON. Sell all the BUs that are not making money. Back to basics. Thanks.
I can only comment on IA. Fantasy figures. It is big trouble.
HW cooking the books is truly remarkable.