Honeywell Chairman and CEO Dave Cote appeared on Fox Business News’ Opening Bell with Maria Bartiromo to discuss Honeywell’s Q1 performance, the impact of the strong dollar and Honeywell’s position for growth.
“Overall, we were able to grow earnings 10% off what was a very good base on organic sales of only about 2%, which is pretty consistent with what we saw last year,” Cote said. “This big effect that everybody’s seeing, including us on the actual reported sales number, is the impact of F/X and usually the Euro in terms of how it hurts all of us in terms of how we report it.”
Cote also discusses Honeywell’s strategy for increasing cash, including significant CAPEX investment, growing the dividend at a rate greater than earnings and being opportunistic about share repurchased and acquisitions as well as the need for corporate tax reform to help American companies.
“I worry less about the strong dollar as much as I do that a lot of our cash is outside the U.S. Because of that absolutely silly U.S. tax policy, we have the same situation that most other companies do. All our debt is inside the U.S., and all of our cash is outside of the US, which makes no sense at all.”
Watch the full interview here: