'Honeywell delivered our original earnings commitment for the first quarter… despite the substantial challenges we faced due to the coronavirus pandemic,' said CEO Darius Adamczyk.
'As the pandemic rapidly escalated and the global economy deteriorated, we faced headwinds across our businesses. There were rapid changes in our supply chain, constraints at customers… These challenges drove an organic sales decline in the quarter.'
In the company's performance materials and technologies business, which houses blowing agents, sales declined by 6.8% between the first quarter of 2019 and the first quarter of 2020. They fell to $2.4bn in the first quarter of 2020. This compares with $2.5 bn in the same quarter last year.
At the same time, pre-tax income in the division fell 9.2%. It reached $512m in the first quarter of 2020. This compares with $ 564m in the equivalent period in 2019.
Aside from the effect of the coronavirus pandemic, sales were down in the division because of illegal imports of HFCs into
Looking ahead to the rest of the year, Adamczyk said his company is well-prepared to manage the downturn with a strong balance sheet. '[The company has] nearly $9 bn of cash and short-term investments on hand,' he said. 'In March, we further enhanced our financial flexibility with a $6 bn two-year term loan and refinanced EUR 1bn of bonds at attractive rates.'