Honeywell has reported financial results for the first quarter of 2018. The company reported a very strong start to 2018 with sales for the first quarter up 9% on a reported basis and up 5% on an organic basis. (The difference between reported and organic sales primarily relates to the impact of foreign currency translation).
Aerospace sales for the first quarter were up 8% on an organic basis driven by growth in commercial OE and U.S. defense and strength in light vehicle gas and commercial vehicle turbochargers in Transportation Systems. Segment margin expanded 10 bps to 22.5%, with benefits from commercial excellence, productivity, and lower customer incentives partially offset by higher volumes of lower-margin OE shipments, inflation, and foreign exchange.
“As a result of our strong first-quarter performance, the healthy demand environment, and our continued confidence in our ability to execute, we are raising our full-year organic sales guidance to a new range of 3% to 5% and our earnings per share guidance to a new range of US$7.85 to US$8.05. We are also raising our free cash flow guidance by US$0.1bn after a strong first quarter,” said Darius Adamczyk, President and Chief Executive Officer of Honeywell.