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21 Apr 17. General Electric Co reported on Friday that first-quarter cash flow from its industrial operations turned negative and was less than the company expected, though its earnings and revenue exceeded analyst estimates. GE reported a negative $1.6bn in cash flow from industrial operating activities compared with a negative $600m it expected for the quarter due to higher working capital and the timing of bills to customers.
Still, GE said it expects to hit its cash target of $12bn to $14bn for the full year. Investors have been watching cash flow as an indicator of GE’s operating performance.
Revenue fell 1 percent to $27.66bn at the maker of jet engines, power plants and other industrial equipment, due to lower sales in its oil-and-gas and lighting businesses. The figure beat analysts’ estimates of $26.26bn, according to Thomson Reuters I/B/E/S.
Earnings from continuing operations attributable to GE shareholders rose to $858 m in the quarter ended March 31, from $248 m a year earlier.
Earnings per share from continuing operations rose to 10 cents from 3 cents. Adjusted earnings of 21 cents a share were unchanged from a year ago and beat analyst estimates of 17 cents, according to Thomson Reuters I/B/E/S. GE shares were little changed in premarket trading at $30.28. (Source: Reuters)
21 Apr 17. Honeywell Delivers $1.71 Earnings Per Share, Up 10 Percent. Honeywell (NYSE: HON) today announced financial results for the first quarter of 2017 and updated its full-year 2017 earnings guidance.
“Honeywell reported a strong start to 2017, with over 2 percent organic sales growth, 70 basis points of segment margin expansion, and free cash flow of nearly $800 m that was more than six times greater than 2016. Our strong operational performance resulted in reported earnings per share of $1.71. Normalizing for tax, earnings per share was $1.66, or 2 cents above the high-end of our first-quarter guidance and up 11 percent versus last year, excluding divestitures,” said Darius Adamczyk, President and Chief Executive Officer of Honeywell.
“Each of our businesses contributed,” Adamczyk said. “The commercial aftermarket within Aerospace and the global distribution business within Home and Building Technologies remained strong. In Performance Materials and Technologies, robust demand for Solstice® low-global-warming products drove double-digit organic growth in Advanced Materials, and improving conditions in the oil and gas industry bolstered ongoing strength in UOP. In Safety and Productivity Solutions, demand for warehouse solutions and industrial safety products enabled growth in the quarter.”
Adamczyk concluded, “Our diversified portfolio, coupled with the investments we’ve made over the past several years, drove our excellent performance in the first quarter. As a result of our performance, we are raising the low end of our full-year guidance by 5 cents. We now anticipate that 2017 earnings per share will be $6.90 to $7.10, up 7 percent to 10 percent, excluding divestitures, any pension mark-to-market adjustments, and 2016 debt refinancing charges. We look forward to continuing our track record of performance and we remain focused on accelerating our organic growth, continuing to expand margins by maintaining our productivity rigor, delivering best-in-class returns as the leading software-industrial company, and more aggressively deploying capital.”
Honeywell will discuss the results during its investor conference call today starting at 9:30 a.m. Eastern Daylight Time.
First Quarter Performance
Honeywell sales for the first quarter were flat on a reported basis and up over 2 percent on an organic basis. The difference between reported and organic sales is due to the i