Honeywell reported a strong start to 2017, with over 2% organic sales growth, 70 basis points of segment margin expansion, and free cash flow of nearly US$800m that was more than six times greater than 2016.
The strong operational performance resulted in reported earnings per share of US$1.71. Normalizing for tax, earnings per share was US$1.66, or 2 cents above the high-end of its first-quarter guidance and up 11% versus last year, excluding divestitures.
Aerospace sales for the first quarter were flat on an organic basis driven by growth in the Air Transport aftermarket and gas turbo penetration in Europe and China, offset by lower OE volumes in Business and General Aviation. Overall, Defense and Space sales were flat on an organic basis in the quarter.
Segment margin expanded 90 bps to 22.4%, driven by restructuring benefits, productivity net of inflation, and commercial excellence, partially offset by lower Business and General Aviation volumes.