Honeywell Automation India (517174) Q4 03/04 earnings summary

Executive summary

• Nine-month order growth was 19% and sales growth 32% YoY; productivity per employee rose 15% and net working capital as a share of sales fell 5%.

• Honeywell Asia Pacific Inc. acquired the Tata group’s 40.62% stake for Rs.350 per share on Nov. 2, 2004, taking ownership to 81.24%; the financial year-end shifted to Dec. 31 to align reporting.

Financial highlights

• For the nine months ended Dec. 31, 2004, sales and other income were Rs.29,045.68 lakh; operating profit Rs.1,570.32 lakh; and profit after tax Rs.849.21 lakh.

• Net sales were Rs.2,809,433 thousand, PBT Rs.64,350 thousand and basic and diluted EPS Rs.9.60, not annualised; nine-month figures are not comparable with the prior 12-month year.

• Final dividend of Rs.5 per Rs.10 equity share was recommended; proposed dividend was Rs.44,208 thousand, with dividend distribution tax of Rs.5,777 thousand.

Outlook and guidance

• Honeywell Process Solutions was expected to grow in FY 2005, supported by industrial expansion, power generation opportunities, petroleum-market deregulation and new steel and non-ferrous metals investment.

• Six Sigma certification target was 25% of employees; planned initiatives included CRM for after-market services and web tools for project and resource planning.