On Feb. 2, industrial manufacturing conglomerate Honeywell announced its fourth-quarter 2022 and full-year earnings, which showed relatively flat growth compared to the prior year.

For 4Q, sales reached $9.2 billion, a 6% increase over the same quarter in 2021. In Honeywell’s third-quarter earnings report in October, the company also reported a 6% sales growth versus the same quarter in 2021.

For the full 2022 year, sales increased by 3%, or 6% on an organic basis, and operating margin expanded 10 basis points, with segment margin expanding 70 basis points, Honeywell said.

“Honeywell delivered a strong finish to another challenging year, meeting our original guidance for the year despite significant headwinds from FX and the wind down of our operations in Russia,” said Darius Adamczyk, Chairman and CEO of Honeywell. “We also met our latest guidance for all metrics in the fourth quarter. Organic sales growth of 10% in the quarter was underpinned by double-digit growth in our commercial aviation, building products, advanced materials, and UOP businesses. Our disciplined cost management enabled us to expand segment margin by 150 basis points, led by 940 basis points of margin expansion in Safety and Productivity Solutions to 20.2%, the highest ever segment margin for that business. Our strong balance sheet allowed us to execute on our capital deployment strategy once again, deploying $2.3 billion in the quarter, including $1.4 billion in share repurchases to fulfill our 2022 share repurchase commitment from our March Investor Day.”

Here’s a breakdown of Honeywell’s latest earnings report by segment:

• Aerospace: Sales for 4Q were up 11% year-over-year on an organic basis, led by commercial aviation. Honeywell said sales growth was the strongest in commercial original equipment, increasing 25% organically on increased shipset deliveries, “especially to business and general aviation customers.”
• Honeywell Building Technologies: 4Q sales were up 15% on an organic basis year-over-year, with strength in both building products and building solutions. Building products sales increased 21% organically, primarily driven by “increased sales of fire products and building management systems.” Project sales grew double digits organically for the third quarter in a row, leading the growth in building solutions, the company said.
• Performance Materials and Technologies: Sales in 4Q were up 15% on an organic basis despite an approximately 4% headwind from Russia. Sales growth was led by more than 30% organic growth in fluorine products within advanced materials and refining catalyst shipments in UOP, as well as double-digit organic growth in thermal solutions and lifecycle solutions and services within process solutions, Honeywell said.
• Safety and Productivity Solutions: Sales for 4Q decreased 5% on an organic basis. Honeywell said growth in sensing and safety technologies was offset by lower volumes in productivity solutions and services and warehouse and workflow solutions.

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