Honeywell is a good example of the problems facing multinational corporations.
The strong dollar is really hurting multinationals. Even Honeywell.
Honeywell is one of the most-praised multinationals, and with good reason. It has strong management, and it plays in all the right spaces. Aerospace. Environmental controls. High performance materials.
Yet all three major segments saw declines in revenues year-over-year, largely because of the impact of foreign currency.
Here are the year-over year stats for Honeywell:
A 9.4-percent rise in earnings is fantastic, but revenues down 4.5 percent while organic sales are up 3 percent? That's strange.
Most, but not all, of that mismatch was unfavorable currency.
I don't want to blame everything on currency problems. The bigger picture is most multinationals—including Honeywell—have had a tough time growing revenues. Honeywell has seen almost no growth for several years.