$LDL said acquisition was financed through combination of cash on hand and $85MM of borrowings from amended revolving credit facility, which was increased to $175MM. The amended facility provides additional capacity to support organic growth programs, fund capital investments and continue pursuits of attractive acquisitions.
$HON announced that UkrGasVydobuvannya (UGV) has begun using Honeywell UOP's HYT-4118 Unity hydrotreating catalyst to produce ultra-low sulfur diesel fuel at the Shebelinsky refinery in Andreyevka, Kharkov Region, in eastern Ukraine. The catalyst is designed for use in low to medium-pressure ultra-low sulfur diesel hydrotreating units.
$HON said in terms of priorities for 2018, firstly the company wants to drive free cash flow conversion. The second is the incorporation of software into all products. The third one will be about innovation and leveraging the latest technologies available in the marketplace.
For 1Q18, in Aerospace, $HON expects sales to increase in the low single-digit range organically. Home and Building Technology sales will be slightly up. In Performance Materials & Technology, sales are expected to be up low to mid-single-digit while Safety & Productivity Solutions sales are expected in the mid-single-digit range organically.
$HON said Qantas Airlines operated a 13,000-km flight from L.A. to Melbourne using Honeywell Green Jet Fuel. The flight was the first between the US and Australia to use this fuel, made from Carinata seeds engineered by Agrisoma Biosciences. The fuel was produced by AltAir Paramount LLC using $HON’s Renewable Jet Fuel process technology.
$HON expects sales to be $41.8-42.5Bil in FY18 with organic growth of 2-4%. The company raised its 2018 adjusted EPS guidance by $0.20 to a new range of $7.75-8.00 to reflect an expected lower tax rate due to the US Tax Cuts and Jobs Act.
$HON posted a net loss of $2.4Bil or $3.18 per share in 4Q17 compared to a net income of $1Bil or $1.34 per share in 4Q16. The company incurred a provisional charge of $3.8Bil from the Tax Reform during the quarter. Net sales increased 9% to $10.8Bil compared to last year.
With regard to $COL acquisition, $UTX still does expect to close the deal sometime in midyear. $UTX is working through the second request with the DOJ right now. $UTX had earlier expected to fund part of the cash aspect of the deal through foreign cash and now the company is going to bring back about $1Bil a year to pay down the debt.
$UTX feels good about EPS growth outlook of $6.85-7.10, with all four business units contributing. As in the prior years, $UTX's earnings growth will be weighted more towards the back half of the year as it gets the benefit of cost reduction efforts. $UTX sees 1Q18 EPS to be basically flat to 2017, on the profile of the commercial businesses.
Operationally, $UTX continued to execute against its growing aerospace backlog. At Pratt & Whitney, $UTX shipped 374 Geared Turbofan engines in 2017, which is in the range of its 350-400 target and nearly triple its 2016 shipments. The company successfully implemented the engine improvements that it promised to customers in 2017.
$UTX announced the transformative $COL acquisition which will create a premier aerospace supplier. As a result of this proposed transaction, together with the investments in the company's businesses and in its digital strategies, $UTX is positioned well for years to come. The company expects all of its businesses to grow sales and earnings in 2018.
$UTX expects FY18 adjusted EPS of $6.85-7.10 and total sales of $62.5-64Bil, which includes organic sales growth of 4-6%. The company predicts free cash flow in the range of $4.5-5.0Bil. In 2018, $UTX expects accelerating organic sales and adjusted EPS growth along with strong cash generation. The outlook excludes proposed $COL acquisition.
$UTX's commercial aftermarket sales for 4Q17 were up 25% at Pratt & Whitney, and up 10% at UTC Aerospace Systems. Otis new equipment orders rose 1% at constant currency, with solid growth in the U.S. and Europe and continued pricing pressure in China. Equipment orders at UTC Climate, Controls & Security increased 9% organically.
$UTX reported a drop in 4Q17 earnings due to charge related to tax law changes and restructuring items. Income from continuing operations fell to $486MM or $0.50 per share from $1.12Bil or $1.26 per share last year. Net sales was $15.7Bil, up 7% over a year ago including 5 points of organic sales growth. Adjusted EPS rose 3% to $1.60.
