Honeywell today announced second quarter 2010 sales were up 8% to $8.2 billion versus $7.6 billion in the second quarter of 2009 and earnings were up 24% excluding non-cash pension expense to $0.78 per share compared to $0.63 per share in the prior year. On a reported basis, earnings per share were $0.60, flat compared to second quarter last year. Cash flow from operations was $1,090 million and free cash flow (cash flow from operations less capital expenditures) was $975 million, compared to $1,009 million in the second quarter of last year. On a year-to-date basis, cash flow from operations was $1,833 million versus $1,467 million in 2009, and free cash flow was $1,648 million compared to $1,241 million in the first half of last year.

“We believe the recovery is happening, with improving demand in both our short- and long-cycle businesses. However, given ongoing economic uncertainties, we remain cautious about the near-term outlook,” said Honeywell Chairman and CEO Dave Cote.  “Turbochargers and general industrial products continue to rebound, and we’re starting to see a sequential up-tick in commercial aerospace orders. Our improved 2010 outlook reflects our strong first half performance and the continued momentum we’re seeing in our businesses, but, as usual, we’ll maintain a conservative stance in our planning assumptions and operating disciplines for the remainder of the year.”

“We continue to focus on growth and productivity,” continued Cote. “We expect that favorable global macro trends like safety, security, and energy efficiency, combined with our continued investments in new technologies, emerging markets, and our process initiatives will enable the company to continue to grow and outperform now and over the long-term.”

Honeywell expects 2010 sales of $32.4-32.9 billion, earnings in the range of $2.40-2.50 per share on a reported basis ($3.14-3.24, excluding non-cash pension expense), and free cash flow of $3.1-3.3 billion (cash flow from operations of $3.8-4.0 billion).

For more information, read the press release or listen to a replay of a Webcast of the Investor Conference Call.

Honeywell can trace its roots back 125 years to 1885, when an inventor named Albert Butz patented the furnace regulator and alarm. He formed the Butz Thermo-Electric Regulator Co. in Minneapolis on April 23, 1886, and a few weeks later invented a simple, yet ingenious device that he called the “damper flapper.”

Today, Honeywell holds more than 28,000 patents or pending patents worldwide and was ranked in the top 10 among U.S. companies and the top 25 worldwide by the Intellectual Property Owners Association in the number of U.S. patents granted in 2009.

In 2009, Honeywell also successfully launched 600 new products. And, in 2010, Honeywell was named one of the “Top 10 Most Inventive Companies” in the U.S. by Forbes magazine and a “Most Innovative Company” by Fast Company.

With approximately 122,000 employees worldwide, including 19,000 engineers and scientists, Honeywell has a relentless focus on quality, delivery, value, and technology in everything we make and do.

For more information, interact with and explore some of Honeywell’s most innovative and differentiated technologies.

Honeywell awarded 220 scholarships to its Honeywell Educators @ Space Academy program. Teachers from 17 countries and 44 states will attend the program at the U.S. Space & Rocket Center in Huntsville, Alabama, from June 11 to June 23, 2010. Created in partnership with the U.S. Space & Rocket Center in 2004, the Honeywell Educators @ Space Academy program is designed to help teachers move beyond the standard math and science curriculum with supplemental teaching techniques developed through real-life astronaut training.

Honeywell Educators participate in 45 hours of professional development, as well as an intensive educator curriculum focused on space science and exploration. Activities include classroom, laboratory, and field training exercises, which are linked to U.S. science and math teaching standards. Each teacher will also undergo real-life astronaut training including a high-performance jet simulation, scenario-based space missions, land and water survival training, and a state-of-the-art flight dynamics programs.

The Honeywell Educators @ Space Academy is part of Honeywell Hometown Solutions, the company’s corporate citizenship initiative which focuses on areas of vital importance: Family Safety & Security; Housing & Shelter; Science & Math Education; Habitat & Conservation; and Humanitarian Relief. Together with leading public and non-profit institutions, Honeywell has developed powerful programs to address these needs in the communities it serves.

For more information, visit the Honeywell Hometown Solutions website.

Honeywell Chairman and CEO Dave Cote was a featured speaker at the Clinton Global Initiative (CGI) 2010 Mid-Year meeting, which looked at the ability of global leaders to effectively address major challenges and make lasting, positive change.

Led by former U.S. President Bill Clinton, CGI’s Annual Meetings have brought together more than 100 current and former heads of state, 14 Nobel Peace Prize winners, hundreds of leading global CEOs, major philanthropists and foundation heads, directors of the most effective non-governmental organizations, and prominent members of the media.

At the meeting, Cote spoke about Honeywell’s commitments to corporate citizenship, sustainability, and energy efficiency and how strong employee engagement helps the company address tough challenges linked to global macro trends, such as energy, safety, and security.

“Having our 120,000 employees feel good about the place they work for when they go home at night is very important if you’re trying to have a motivated organization with people who really want to make something happen,” he said. 

Honeywell’s corporate citizenship initiative, Honeywell Hometown Solutions (HHS), applies the same rigor and business tools used in the workplace to build programs that deliver quantifiable results one community, one home, one teacher, and one student at a time.  HHS combines community outreach and focused leadership with financial support and employee volunteerism to address core community needs in areas where we have unique expertise: Science and Math Education, Family Safety and Security, Housing and Shelter, Habitat and Conservation, and Humanitarian Relief.

For more information, watch a video from this year’s Clinton Global Initiative 2010 Mid-Year Meeting.

– Honeywell to make euro 117 per share all-cash tender offer for Sperian Protection shares representing a 93% premium on the spot price as of March 30th (last unaffected share price before Cinven’s offer) and a 67% premium over the price previously offered by Cinven

– Sperian’s Board of Directors unanimously approves the tender offer agreement and intends to recommend Honeywell’s offer upon receipt of a fairness opinion

– Essilor and Mrs. Dalloz, Sperian Protection’s two largest shareholders representing 28% of the share capital, have agreed to sell their shares to Honeywell, subject to regulatory approvals

– Combination with Honeywell’s Life Safety division will establish a leading global provider of personal protection equipment with a full range of safety products in attractive, high-growth PPE industry

– Transaction is expected to be dilutive to Honeywell by four cents per share in 2010 and accretive in 2011; No change to Honeywell’s 2010 EPS guidance

Honeywell and Sperian Protection announced Honeywell’s intent to acquire through a binding sale agreement with Essilor and Mrs. Ginette Dalloz and through the launch of an all-cash tender offer all outstanding shares of Sperian Protection with an aggregate transaction value of approximately USD $1.4 billion, including the assumption of net debt. Sperian Protection is a leader in personal protection equipment (PPE) design and manufacturing and will be combined within Honeywell’s Automation and Control Solutions’ Life Safety business.

“Sperian is an ideal fit to add to Honeywell’s great position in the growing PPE industry,” said Roger Fradin, President and CEO of Honeywell Automation and Control Solutions. “It has one of the most recognizable brand portfolios in the industry and a top-tier global customer base, and we have a great deal of respect for the Sperian leadership team and business. The company has built an impressive track record of long-term growth while continuing to invest in its future through R&D and global acquisitions. Like Honeywell, Sperian develops differentiated new products that customers demand. Combined with our Norcross acquisition in 2008, we are building a global leader in the fast-growing PPE industry, with worldwide distribution capabilities to deliver the highest quality products in both developed and emerging regions. This represents a terrific opportunity to once again derive value from our stellar acquisition integration process.”

For more information, read the press release.

Honeywell announced it has signed an agreement valued at approximately $142 million USD (approximately $145 million CAD) to acquire Matrikon Inc. (TSX:MTK), a company specializing in software that helps industrial manufacturers operate their plants safely, reliably and efficiently. The acquisition will strengthen Honeywell’s position in the high-growth oil and gas and power value chains and increase its global footprint in key regions. The transaction is subject to approval by Matrikon’s shareowners.

Matrikon will be integrated into Honeywell Process Solutions, which is part of Honeywell’s Automation and Control Solutions business group.

Matrikon will bring to Honeywell complementary applications that monitor oil and gas well performance and mining equipment, as well as supply chain solutions for mining. Matrikon’s cyber-security and alarm management solutions also align with Honeywell’s solutions for process safety and security.

For more information, read the press release.

Honeywell Chairman and CEO Dave Cote is featured as the cover story of the second quarter 2010 edition of NYSE Magazine. The story discusses how today’s Honeywell is a much different company than it was during the 2001-2002 recession because of Cote’s focus on “seed planting” – or investing for the future – in R&D, global expansion, M&A, and opportunities to help employees grow and develop.

“This time our sales were down 15 percent in one year rather than 11 percent over two years, but instead of losing money, we made money, thanks to new efficiencies that were part of our One Honeywell culture. Our free cash flow conversion was more than 150 percent this time, compared with less than 65 percent before. Instead of cutting R&D, we maintained our research budget and kept investing in our enablers and our global strategy.”

Cote says he expects Honeywell will become “bigger and more profitable, generating even more cash” because of its great positions in good industries and ties to key global macro trends, including energy, safety, and security.

Cote also outlines his solutions on “How to Solve the Energy Crisis” and discusses Honeywell’s expansive energy efficiency portfolio, which can reduce U.S. and European energy consumption by 20-25% if immediately and comprehensively adopted today.

For more information, read the full article.

Honeywell announced first quarter 2010 sales were up 3% to $7.8 billion versus $7.6 billion in 2009 and earnings were $0.50 per share versus $0.54 per share in the prior year. Excluding non-cash pension expense, earnings were up 21% to $0.68 per share compared to $0.56 per share in the prior year. Cash flow from operations was $743 million versus $341 million in the first quarter of 2009 and free cash flow (cash flow from operations less capital expenditures) was up 190% to $673 million compared to $232 million last year.
 
“Honeywell’s first quarter performance reflects better than expected improvements in many of our end markets, coupled with strong commercial execution and disciplined cost controls,” said Honeywell Chairman and Chief Executive Officer Dave Cote. “Key short cycle businesses, such as turbochargers and general industrial products, saw good organic growth in the quarter reflecting improved market conditions. We’re building a strong backlog of orders and are encouraged by continued penetration of our new products and important contracts won during the quarter. We also continue to benefit from effective execution of our big process initiatives – Honeywell Operating System, Velocity Product Development™, and Functional Transformation – contributing to strong operating leverage and margin expansion.”
 
“While the timing and shape of the recovery is uncertain and we remain conservative in our planning assumptions, the outlook for Honeywell is bright,” continued Cote. “Our great positions in good industries; links to favorable global macro trends, such as safety, security, and energy efficiency; growth in emerging regions; and strong pipeline of new products and technologies are reflected in our raised outlook for the year and should drive attractive growth over the long-term.”

Honeywell now expects 2010 sales of $31.5-32.3 billion and earnings in the range of $2.30-2.45 per share versus a previous estimate of $2.20-2.40 per share. The company also now expects free cash flow of $2.8-3.1 billion (cash flow from operations of $3.5-3.8 billion) versus a previous estimate of $2.4-2.7 billion.

For more information, read the press release or listen to a replay of a Webcast of the Investor Conference Call.

FORTUNE magazine announced that Honeywell has been ranked 74 on the 2010 FORTUNE 500 list, which ranks all U.S. companies by revenue.

The full list of the largest U.S. companies is currently available online and related stories will appear in the May 3 issue of FORTUNE magazine, which will also be available on newsstands on April 19.

“U.S. corporations are staging a nearly unprecedented comeback that’s largely escaping notice,” said Shawn Tully, FORTUNE magazine’s editor-at-large.  “For 2009, the FORTUNE 500 lifted earnings 335%, to $391 billion, a $301 billion jump that’s the second largest in the list’s 56-year history, approaching the increase in the robust recovery of 2003.  For last year, the 500 raised their return on sales from less than 1% to 4%. That’s close to the list’s 4.7% historical average.”

For more information, read the online article and view the full list.