Earnings Call Excerpt
Honeywell International, Inc. (HON)
Q3 2009 Earnings Call
October 23, 2009 8:00 am ET
Executives
Elena Doom – Vice President, Investor Relations
David Cote - Chairman and Chief Executive Officer
David Anderson - Senior Vice President, Chief Financial Officer
Analysts
Shannon O'Callaghan – Barclays Capital
Jeff Sprague – Citi Investment Research
Stephen Whittaker - Sanford Bernstein
Scott Davis – Morgan Stanley
Howard Rubel – Jefferies & Co.
Unidentified Analyst – JP Morgan
Presentation
Operator
Welcome to the Honeywell third quarter 2009 earnings conference call. At this time I would like to turn conference over to Elena Doom, of Investor Relations. Ms. Doom please go ahead.
Elena Doom
Thank you. Good morning and welcome to Honeywell’s third quarter 2009 earnings conference call. With me here today are Chairman and CEO, Dave Cote and Senior Vice President and CFO, Dave Anderson.
This call and webcast including any non-GAAP reconciliations are available on our website www.Honeywell.com/Investor. Note that elements of this presentation contain forward-looking statements that are based on our best view of the world and of our businesses as we see them today. These elements can change, and we would ask that you interpret them in that light. This morning we will review our financial results for the third quarter and our expectations for the remainder of the year and of course allow time for your questions.
With that I will turn the call over to Dave Cote.
Dave Cote
Thanks Elaine and good morning everyone. I am pleased to report a quarter of better than expected results and that is despite a continued tough economic environment. With sales of $7.7 billion we were able to generate earnings per share of $0.80 and that includes covering $35 million or $0.03 on EPS of additional repositioning actions. We also had a $0.04 positive impact from lower than expected tax expense and we anticipate that third quarter tax benefit will be offset by a higher income tax rate in the fourth quarter.
While the top line environment continues to be challenging we were able to deliver these results because of the strong growth initiatives and aggressive cost actions we have in place throughout Honeywell and that is evidenced by our ability to preserve and grow margins in this environment. Segment margins were 13.8% in the quarter up 130 basis points from the prior year and are 12.6% on a year-to-date basis down only about 60 basis points on $5 billion less sales and that really reinforces the quality of our earnings performance.
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