(Dollars dans les tableaux et graphiques en millions)
The following Management Discussion and Analysis is intended to help the reader understand the results of operations and financial condition ofHoneywell International Inc. and its consolidated subsidiaries (Honeywell or the Company) for the three months endedMarch 31, 2022 . The financial information as ofMarch 31, 2022 , should be read in conjunction with the Consolidated Financial Statements for the year endedDecember 31, 2021 , contained in our 2021 Annual Report on Form 10-K. See Note 3 Acquisitions and Divestitures of Notes to Consolidated Financial Statements for a discussion of acquisition and divestiture activity during the three months endedMarch 31, 2022 .
MISE À JOUR DE L’ENTREPRISE
We continue to monitor several macroeconomic and geopolitical trends, that have impacted our business, including changing conditions from the COVID-19 pandemic, the on-goingRussia -Ukraine conflict, inflationary cost pressures, supply chain disruptions, and labor shortages.
MISE À JOUR COVID-19
The COVID-19 pandemic continues to impact our business operations, and our customers' and suppliers' ability to operate at normal levels. Disruptions in normal operating levels continue to create supply chain disruptions and inflationary cost pressures within our end-markets. We anticipate supply chain constraints, and the inflationary environment will continue during 2022. As such, we implemented short-term and long-term strategies to reduce the impact of current and future effects. During the first quarter of 2022, governments around the world removed many restrictions on businesses and the general public. We continue to operate our manufacturing sites at normal production levels. As ofMarch 31, 2022 , we have returned over 90% of our non-manufacturing employees to the workplace. For our remaining non-manufacturing employees, we continue to utilize our procedures for a phased return of our employees to the workplace.
Nous continuons de surveiller activement les épidémies régionales de COVID-19, ainsi que les restrictions gouvernementales et les activités de confinement associées dans les zones où nous opérons. À ce jour, les impacts de ces actions n’ont pas été significatifs.
See the section titled Review of Business Segments for additional information on the impacts of COVID-19, inflationary cost pressures, supply chain disruptions, and labor shortages, to our businesses.
In response to the Russian invasion ofUkraine , onMarch 9, 2022 , we suspended substantially all of our sales, distribution, and service activities inRussia andBelarus (the Suspension), any future actions are unknown as we continue to evaluate the situation. DuringMarch 2022 , we created aUkraine Relief Fund , allowing employees to make donations to support organizations that are providing direct assistance to Ukrainians and those that are assisting them in the midst of this humanitarian crisis. ThroughMarch 31, 2022 , employee contributions to this fund, along with the Company match, exceeded$1 million . To further support employees in the impacted region, we accelerated payroll payments to those affected by the conflict and the Suspension of our operations. Due to the Suspension, sanctions, and deteriorating trade relations, duringMarch 2022 , we recorded$183 million of reserves against outstanding accounts receivable, contract assets, and impairments of other assets. The respective impacts to revenues, net income, net assets, cash flow from operations, or our global workforce are not material. For the year endedDecember 31, 2021 , revenues from sales inRussia represented approximately 1% of our global revenues, while assets inRussia represented less than 1% of our total assets. Based on available information to date, the Company's estimate of potential future impairments on our businesses inRussia would not be material with respect to the Company's consolidated financial position. As the conflict continues to evolve, existing conditions may worsen, or other impacts that are unknown at this time, may arise that could have a material adverse effect on our consolidated financial position. TheRussia -Ukraine conflict caused certain commodity prices to spike, adding to the inflationary pressures in the global economy. We considered the impacts of the conflict on oil and gas prices in our short-term and long-term strategies discussed in the above.
Voir l’article 1A. Facteurs de risque pour des informations supplémentaires sur les risques potentiels pour notre entreprise.
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RÉSULTATS DES OPÉRATIONS
Résultats financiers consolidés
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Bénéfice de segment par segment
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RÉSULTATS OPÉRATIONNELS CONSOLIDÉS
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La variation du chiffre d’affaires net est attribuable aux éléments suivants :
Q1 2022 Versus Q1 2021
Volume (6) %
Price 7 %
Foreign Currency Translation (2) %
(1) %
Q1 2022 compared with Q1 2021
Net sales decreased due to the following:
• Baisse des volumes de ventes dans notre segment Solutions de sécurité et de productivité, et
•The unfavorable impact of foreign currency translation, driven by the strengthening of theU.S. Dollar against the currencies of the majority of our international markets, primarily the Euro, Turkish Lira, Australian Dollar, and British Pound,
• Partiellement compensée par des prix favorables pour compenser la hausse des coûts directs et indirects des matériaux et la hausse des coûts de main-d’œuvre.
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Coût des produits et services vendus
[[Image Removed: hon-20220331_g6.jpg]] Q1 2022 compared with Q1 2021 Cost of products and services sold decreased due to the following:
• Baisse des volumes de ventes dans notre activité Solutions de sécurité et de productivité, ce qui a entraîné une baisse des coûts directs et indirects des matériaux et des coûts de main-d’œuvre,
•Partiellement compensée par des coûts de matériaux directs et indirects plus élevés et des coûts de main-d’œuvre plus élevés dans nos autres activités, ainsi que des charges de repositionnement et autres charges plus élevées.
Marge brute
[[Image Removed: hon-20220331_g7.jpg]] Q1 2022 compared with Q1 2021 Gross margin as a percentage of net sales decreased due to the following:
• Frais de repositionnement et autres frais plus élevés,
• Partiellement compensée par des prix avantageux.
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Frais de vente, frais généraux et administratifs
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T1 2022 par rapport au T1 2021 Les frais de vente, généraux et administratifs ont augmenté en raison des éléments suivants :
•Accrual of reserves against outstanding accounts receivable, contract assets, and impairments of other assets due to the suspension of substantially all of our sales, distribution, and service activities inRussia andBelarus . Other (Income) Expense Three Months Ended March 31, 2022 2021 Other (Income) Expense$ (319) $ (442) Q1 2022 compared with Q1 2021 Other income decreased due to the following:
• Gain de l’année précédente sur la vente de l’activité de vente au détail de chaussures, et
•Revenu de pension inférieur.
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Tax Expense
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Q1 2022 compared with Q1 2021
The effective tax rate increased, and was higher than the U.S. federal statutory
rate of 21%, due to the following:
•Accrual of reserves against outstanding accounts receivable, contract assets,
and impairments of other assets due to the suspension of substantially all of
our sales, distribution, and service activities in Russia and Belarus with no
corresponding tax benefit,
• Réduction des avantages fiscaux pour la rémunération en actions des employés, et
• Réserves fiscales supplémentaires et impôts d’État,
•Partiellement compensée par le règlement favorable de certaines questions fiscales étrangères.
Pour plus d’informations sur les modifications du taux d’imposition effectif, se reporter à la note 6 Impôts sur les bénéfices des notes aux états financiers consolidés.
Résultat net attribuable à Honeywell
[[Image Removed: hon-20220331_g10.jpg]] Q1 2022 compared to Q1 2021 Earnings per share of common stock-assuming dilution decreased, driven by the following: •Higher repositioning and other charges, including the accrual of reserves against outstanding accounts receivable, contract assets, and impairments of other assets due to the suspension of substantially all of our sales, distribution, and service activities inRussia andBelarus , and
• Gain de l’année précédente sur la vente de l’activité chaussures de détail,
•Partiellement compensée par une baisse des impôts sur le revenu.
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REVUE DES SECTEURS D’ACTIVITE
We globally manage our business operations through four segments: Aerospace, Honeywell Building Technologies, Performance Materials and Technologies, and Safety and Productivity Solutions. AEROSPACENet Sales [[Image Removed: hon-20220331_g11.jpg]] Three Months Ended March 31, % 2022 2021 Change Net sales$ 2,749 $ 2,632 4 % Cost of products and services sold 1,759 1,656 Selling, general and administrative and other expenses 237 214 Segment profit$ 753 $ 762 (1) % 2022 vs. 2021 Three Months Ended March 31, Net Segment Factors Contributing to Year-Over-Year Change Sales Profit Organic(1) 5 % (1) % Foreign currency translation (1) % - % Acquisitions, divestitures and other, net - % - % Total % Change 4 % (1) % (1) Organic sales % change, presented for all of our reportable business segments, is defined as the change in net sales, excluding the impact on sales from foreign currency translation and acquisitions, net of divestitures, for the first 12 months following the transaction date. We believe this non-GAAP measure is useful to investors and management in understanding the ongoing operations and analysis of ongoing operating trends.
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Q1 2022 compared to Q1 2021 Sales increased primarily due to favorable pricing and higher demand from our aftermarket products and services, as flight hours increase from pandemic lows, and commercial OEMs, partially offset by supply chain constraints.
•Les ventes première monte de l’aviation commerciale ont augmenté de 11 % (croissance organique de 11 %) en raison de la hausse de la demande du transport aérien, partiellement compensée par la baisse des volumes de ventes dans l’aviation régionale et d’affaires.
•Les ventes du marché secondaire de l’aviation commerciale ont augmenté de 28 % (augmentation organique de 28 %) grâce à des prix favorables et à une demande accrue dans le transport aérien et l’aviation régionale et d’affaires.
•Les ventes de Défense et Espace ont diminué de 15 % (diminution organique de 14 %) en raison de la baisse des volumes de ventes dans la défense nationale et internationale.
Le coût des produits et services vendus a augmenté en raison de volumes de ventes plus élevés de produits à faible marge, de coûts de matières directs et indirects plus élevés et de coûts de main-d’œuvre plus élevés.
Le bénéfice sectoriel a diminué en raison de volumes de ventes plus élevés de produits à faible marge, partiellement compensés par des prix favorables.
TECHNOLOGIES DE CONSTRUCTION HONEYWELL
Net Sales [[Image Removed: hon-20220331_g12.jpg]] Three Months Ended March 31, % 2022 2021 Change Net sales$ 1,429 $ 1,358 5 % Cost of products and services sold 839 789 Selling, general and administrative and other expenses 254 264 Segment profit$ 336 $ 305 10 %
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2022 vs. 2021
Three Months Ended
March 31,
Net Segment
Factors Contributing to Year-Over-Year Change Sales Profit
Organic 8 % 14 %
Foreign currency translation (3) % (4) %
Acquisitions, divestitures and other, net - % - %
Total % Change 5 % 10 %
Q1 2022 compared to Q1 2021
Sales increased due to favorable pricing, partially offset by the unfavorable
impact of foreign currency translation.
•Les ventes de produits ont augmenté de 12 % (augmentation organique de 14 %) en raison de prix favorables et d’une demande accrue pour certaines offres de produits, partiellement compensées par l’impact défavorable de la conversion des devises étrangères.
• Ventes en
Cost of products and services sold increased primarily due to higher direct and indirect material costs and higher labor costs, and lower productivity, partially offset by the favorable impact of foreign currency translation and higher volumes of higher margin products. Segment profit increased due to favorable pricing and higher demand for certain product offerings, partially offset by higher direct and indirect material costs and higher labor costs, and the unfavorable impact of foreign currency translation.
MATÉRIAUX ET TECHNOLOGIES PERFORMANTS
Net Sales [[Image Removed: hon-20220331_g13.jpg]] Three Months Ended March 31, % 2022 2021 Change Net sales$ 2,453 $ 2,346 5 % Cost of products and services sold 1,601 1,591 Selling, general and administrative and other expenses 342 321 Segment profit$ 510 $ 434 18 %
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2022 vs. 2021
Three Months Ended
March 31,
Net Segment
Factors Contributing to Year-Over-Year Change Sales Profit
Organic 6 % 19 %
Foreign currency translation (2) % (1) %
Acquisitions, divestitures and other, net 1 % - %
Total % Change 5 % 18 %
Q1 2022 compared to Q1 2021
Sales increased due to favorable pricing and the acquisition of Sparta Systems,
partially offset by lower sales volumes and the unfavorable impact of foreign
currency translation.
•Les ventes d’UOP ont diminué de 9 % (baisse organique de 9 %) en raison d’une demande plus faible pour les nouveaux projets pétroliers et gaziers.
•Process Solutions sales increased 5% (increased 7% organic) due to favorable pricing, higher demand for certain products and services, and the acquisition of Sparta Systems, partially offset by the unfavorable impact of foreign currency translation and the impact of theRussia -Ukraine conflict.
•Les ventes d’Advanced Materials ont augmenté de 14 % (augmentation organique de 16 %) grâce à des prix favorables, partiellement compensés par une baisse de la demande de produits fluorés et l’impact défavorable de la conversion des devises étrangères.
Cost of products and services sold increased due to higher direct and indirect material costs and higher labor costs, partially offset by lower sales volumes and the favorable impact of foreign currency translation. Segment profit increased due to favorable pricing and higher sales of higher margin products, partially offset by higher direct and indirect material costs and higher labor costs.
SOLUTIONS DE SÉCURITÉ ET DE PRODUCTIVITÉ
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Three Months Ended
March 31,
%
2022 2021 Change
Net sales $ 1,744 $ 2,118 (18) %
Cost of products and services sold 1,218 1,550
Selling, general and administrative and other expenses 273 265
Segment profit $ 253 $ 303 (17) %
2022 vs. 2021
Three Months Ended
March 31,
Net Segment
Factors Contributing to Year-Over-Year Change Sales Profit
Organic (15) % (14) %
Foreign currency translation (1) % (1) %
Acquisitions, divestitures and other, net (2) % (2) %
Total % Change (18) % (17) %
Q1 2022 compared to Q1 2021
Sales decreased due to lower sales volumes, the sale of the retail footwear
business, and the unfavorable impact of foreign currency translation, partially
offset by favorable pricing.
•Les ventes de la sécurité et de la vente au détail ont diminué de 31 % (diminution organique de 26 %) en raison d’une baisse de la demande d’équipements de protection individuelle et de la vente de l’activité de vente au détail de chaussures, partiellement compensées par des prix favorables.
•Sales in Productivity Solutions and Services increased 13% (increased 16% organic) due to favorable pricing and higher demand, partially offset by the unfavorable impact of foreign currency translation. •Sales in Warehouse and Workflow Solutions decreased 28% (decreased 28% organic) due to lower sales volumes as a result of supply chain constraints and timing of projects. •Sales in Advanced Sensing Technologies increased 23% (increased 24% organic) due to higher demand and favorable pricing, partially offset by the unfavorable impact of foreign currency translation. Cost of products and services sold decreased due to lower sales volumes, the divestiture of the retail footwear business, and the favorable impact of foreign currency translation, partially offset by higher direct and indirect material costs and higher labor costs, and lower productivity.
Le bénéfice sectoriel a diminué principalement en raison d’une productivité et d’un volume de ventes inférieurs, partiellement compensés par des prix favorables.
CORPORATIF ET TOUT AUTRE
Corporate and All Other primarily includes unallocated corporate costs, interest expense on holding-company debt, and the controlling majority-owned interest in Quantinuum. Corporate and All Other is not considered a separate reportable business segment as segment reporting criteria is not met for the activities reported with Corporate and All Other. The Company continues to monitor the activities in Corporate and All Other to determine the need for further reportable business segment disaggregation.
FRAIS DE REPOSITIONNEMENT
See Note 5 Repositioning and Other Charges of Notes to Consolidated Financial Statements for a discussion of our repositioning actions and related charges incurred in the three months endedMarch 31, 2022 and 2021. Cash spending related to our repositioning actions was$69 million in the three months endedMarch 31, 2022 , and was funded through operating cash flows.
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TRÉSORERIE ET RESSOURCES EN CAPITAL
(Dollars en tableaux en millions)
We continue to manage our businesses to maximize operating cash flows as the primary source of liquidity. Each of our businesses is focused on increasing operating cash flows through revenue growth, margin expansion, and improved working capital turnover. Additional sources of liquidity include committed credit lines, short-term debt from the commercial paper market, long-term borrowings, access to the public debt and equity markets,U.S. cash balances, and the ability to access non-U.S. cash balances.
ESPÈCES
We monitor the third-party depository institutions that hold our cash and cash equivalents on a daily basis. Our emphasis is primarily safety of principal and secondarily maximizing yield of those funds. We diversify our cash and cash equivalents among counterparties to minimize exposure to any one of these entities. As ofMarch 31, 2022 , andDecember 31, 2021 , we held$9.8 billion and$11.5 billion , respectively, of cash and cash equivalents, including our short-term investments.
EMPRUNTS
Les emprunts totaux consolidés ont été
March 31, 2022 December 31, 2021
Commercial paper and other short-term borrowings $ 3,526 $ 3,542
Variable rate notes 622 622
Fixed rate notes 15,231 15,314
Other 197 332
Debt issuance costs (207) (211)
Total borrowings $ 19,369 $ 19,599
A source of liquidity is our ability to access the commercial paper market.
Commercial paper notes are sold at a discount or premium and have a maturity of
not more than 365 days from date of issuance. Borrowings under the commercial
paper program are available for general corporate purposes as well as for
financing acquisitions.
Nous avons également les contrats de crédit renouvelable suivants :
•A$1.5 billion 364-Day Credit Agreement (the 364-Day Credit Agreement) with a syndicate of banks, datedMarch 24, 2022 . Amounts borrowed under the 364-Day Credit Agreement are required to be repaid no later thanMarch 23, 2023 , unless (i) we elect to convert all then outstanding amounts into a term loan, upon which such amounts shall be repaid in full onMarch 23, 2024 , or (ii) the 364-Day Credit Agreement is terminated earlier pursuant to its terms. The 364-Day Credit Agreement replaced the previously reported$1.5 billion 364-day credit agreement dated as ofMarch 31, 2021 , which was terminated in accordance with its terms effectiveMarch 24, 2022 . As ofMarch 31, 2022 , there were no outstanding borrowings under our 364-Day Credit Agreement. •A$4.0 billion Five Year Credit Agreement (the 5-Year Credit Agreement) with a syndicate of banks, datedMarch 24, 2022 . Commitments under the 5-Year Credit Agreement can be increased pursuant to the terms of the 5-Year Credit Agreement to an aggregate amount not to exceed$4.5 billion . The 5-Year Credit Agreement amended and restated the previously reported$4.0 billion amended and restated five year credit agreement dated as ofMarch 31, 2021 . As ofMarch 31, 2022 , there were no outstanding borrowings under our 5-Year Credit Agreement. We also have a current shelf registration statement filed with theSEC under which we may issue additional debt securities, common stock, and preferred stock that may be offered in one or more offerings on terms to be determined at the time of the offering. We anticipate that net proceeds of any offering would be used for general corporate purposes, including repayment of existing indebtedness, share repurchases, capital expenditures and acquisitions.
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COTES DE CRÉDIT
Our ability to access the global debt capital markets and the related cost of these borrowings is affected by the strength of our credit rating and market conditions. Our credit ratings are periodically reviewed by the major independent debt-rating agencies. As ofMarch 31, 2022 , S&P Global Inc. (S&P),Fitch Ratings Inc. (Fitch), and Moody's Investor Service (Moody's) have ratings on our debt set forth in the table below: S&P Fitch Moody's Outlook Stable Stable Stable Short-term A-1 F1 P1 Long-term A A A2 CASH FLOW SUMMARY
Nos flux de trésorerie provenant des activités d’exploitation, d’investissement et de financement, tels qu’ils sont reflétés dans l’état consolidé des flux de trésorerie, se résument comme suit :
Trois mois terminés
2022 2021 Variance
Cash and cash equivalents at beginning of period $
10 959
Operating activities Net income attributable to Honeywell 1,134 1,427 (293) Noncash adjustments 537 239 298 Changes in working capital (815) 42 (857) Other operating activities (820) (730) (90) Net cash provided by operating activities 36 978 (942) Net cash provided by (used for) investing activities (10) (1,304) 1,294 Net cash used for financing activities (1,719) (2,217) 498 Effect of exchange rate changes on cash 15 (14) 29 Net increase (decrease) in cash and cash equivalents (1,678) (2,557) 879 Cash and cash equivalents at end of period $
9 281
Cash provided by operating activities decreased due to an unfavorable impact to working capital and a decrease in net income, partially offset by an increase in noncash adjustments, primarily driven by an increase in repositioning and other charges. Cash used for investing activities decreased by$1,294 million primarily due to a$1,127 million decrease in cash paid for acquisitions,$205 million net increase in investments, and$197 million cash receipts from Garrett Motion Inc. (Garrett), partially offset by$190 million in proceeds from the 2021 sale of the retail footwear business. Cash used for financing activities decreased by$498 million primarily due to$777 million decrease of proceeds from the issuance of long-term debt, partially offset by$196 million increase in repurchases of common stock and$44 million decrease in proceeds from the issuance of common stock.
BESOINS DE TRÉSORERIE ET ÉVALUATION DE LA LIQUIDITÉ ACTUELLE
In addition to our normal operating cash requirements, our principal future cash requirements will be to fund capital expenditures, share repurchases, dividends, strategic acquisitions and debt repayments. OnFebruary 12, 2021 , the Board of Directors authorized the repurchase of up to a total of$10 billion of Honeywell common stock, which included amounts remaining under, and replaced, the previously approved share repurchase program. During the three months endedMarch 31, 2022 , the Company repurchased common stock of$1,018 million . Refer to the section titled Liquidity and Capital Resources of our 2021 Form 10-K for a discussion of our expected capital expenditures, share repurchases, and dividends for 2022.
Nous continuons d’identifier des opportunités pour améliorer nos liquidités et l’efficacité de notre fonds de roulement, ce qui comprend l’extension des délais de paiement avec nos fournisseurs et la vente de nos créances clients à des institutions financières non affiliées sans recours. L’impact de ces programmes n’est pas significatif sur nos liquidités globales.
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We continue to assess the relative strength of each business in our portfolio as to strategic fit, market position, profit, and cash flow contribution in order to identify target investment and acquisition opportunities in order to upgrade our combined portfolio. We identify acquisition candidates that will further our strategic plan and strengthen our existing core businesses. We also identify businesses that do not fit into our long-term strategic plan based on their market position, relative profitability, or growth potential. These businesses are considered for potential divestiture, restructuring, or other repositioning actions, subject to regulatory constraints. Based on past performance and current expectations, we believe that our operating cash flows will be sufficient to meet our future operating cash needs. Our available cash, committed credit lines and access to the public debt and equity markets provide additional sources of short-term and long-term liquidity to fund current operations, debt maturities, and future investment opportunities.
Se reporter à la note 8 Dette à long terme et conventions de crédit des notes afférentes aux états financiers consolidés pour une analyse supplémentaire des éléments ayant une incidence sur nos liquidités.
OTHER MATTERS LITIGATION We are subject to a number of lawsuits, investigations, and claims (some of which involve substantial amounts) arising out of the conduct of our business. See Note 14 Commitments and Contingencies of Notes to Consolidated Financial Statements for further discussion of environmental, asbestos and other litigation matters.
ESTIMATIONS COMPTABLES CRITIQUES
Il n’y a eu aucun changement important dans nos estimations comptables critiques présentées dans notre rapport annuel 2021 sur formulaire 10-K. Pour une discussion sur les estimations comptables critiques de la société, voir la section intitulée Estimations comptables critiques dans notre rapport annuel 2021 sur formulaire 10-K.
PRISES DE POSITION RÉCENTES EN COMPTABILITÉ
Se reporter à la note 2 Résumé des principales méthodes comptables des notes aux états financiers consolidés pour une analyse des récentes prises de position comptables.
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