Performance Materials and Technologies in 1Q18
Honeywell International’s (HON) PMT (Performance Materials and Technologies) segment accounted for 24.4% of its total revenue in 1Q18, compared with 24.8% in 1Q17, representing a difference of 0.40 percentage points YoY (year-over-year). Between 1Q17 and 1Q18, PMT’s revenue rose 7.7%, from $2.4 billion to $2.5 billion.
The segment’s growth was fueled by 3% organic growth due to short-cycle demand in process solutions resulting from an increase in new orders in 1Q18. Foreign currency translation added 5% to the segment’s growth. Within this segment, the Honeywell UOP business grew 6%, driven by the addition of new clients. The Solstice business continued to grow strongly, and the Process Solutions business grew 15%, backed by an increase in smart energy, thermal solutions, and maintenance and migration services.
Net income and margins
In 1Q18, the PMT segment’s net income rose 7.5% YoY to $519.0 million from $483.0 million due to foreign currency exchange. However, an unfavorable mix resulted in the segment’s margin staying at 20.5% in 1Q18.
The segment’s revenue is expected to grow, driven by UOP, Solstice, and foreign currency exchange. Backlogs from 1Q18 could drive the process solutions business.
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