The company reported full-year 2011 results including:
• 2011 sales of $36.5 billion, up approximately 13% over 2010
   – 8% organic sales growth, again reflecting strong end markets, successful new product launches, and continued expansion in high growth regions
• 2011 proforma earnings (excluding the impact of pension mark-to-market adjustments)  of $4.05 per share, up 35% over $3.00 in 2010; Reported EPS of $2.61 in 2011 versus $2.59 in the prior year
   – Pension mark-to-market adjustment of $1.44 per share calculated using 791.6 million weighted average shares outstanding assuming dilution
• 2011 cash flow from operations of $2.8 billion, includes $1.7 billion cash pension contribution in the year
   – 2011 free cash flow of approximately $3.7 billion, prior to $1.7 billion cash pension contribution

“Honeywell had a terrific 2011,” said Honeywell Chairman and CEO Dave Cote. “We executed across the portfolio with record organic sales growth and segment margins. Our 2011 performance reflects the operational and financial disciplines that underpin the transformation that has taken place at the company over the last 10 years. We deployed the Honeywell 5 Initiatives – Growth, Productivity, Cash, People, and our Enablers, and created a common One Honeywell culture committed to continuous improvement. As a result, we built a better set of businesses with Great Positions in Good Industries, a terrific performance track record, a great leadership team with a truly global focus, a very full pipeline of new products and technologies, and our key process initiatives that are gaining momentum. We’ve come a long way, and we feel even better about our future.”

“While we expect a more challenging macro environment ahead in 2012, primarily driven by softness in Europe impacting the short-cycle businesses, we’re confident that Honeywell is well positioned to continue to outperform,” continued Cote.  “Our long-cycle businesses are accelerating, with Commercial Aerospace OE, UOP, Building Solutions & Distribution, and Process Solutions all having substantial backlog, in total just under $16 billion. While we expect growth to moderate in the first half of 2012, we’re confident that we can drive strong sales conversion leading to higher segment margins over the course of the year.  The investments we’ve made, coupled with our execution track record and disciplined playbook, will be key to our continued outperformance in 2012 and beyond.”

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

Aldous Wong, HBS Vice President & General Manager, North Asia, shakes hands with Ai Yamin, Deputy Director of TEDA at the signing ceremony.

Honeywell signed an agreement with the Tianjin Economic-Technological Development Area (TEDA) to implement China’s first Smart Grid Demand Response project.  State Grid Electric Power Research Institute selected Honeywell to develop the project in February. The signing also represents the official launch of the Demand Response System Pilot jointly sponsored by the Chinese and United States governments through the U.S.-China Energy Cooperation Program (ECP), which aims to develop a nationwide set of smart grid industry standards and regulations in China.

Under the Honeywell-TEDA agreement, Honeywell will conduct a demonstration project using its automated demand response (Auto DR) technology at select facilities within the TEDA development area, including office buildings, government and commercial facilities, and industrial plants.

As the world’s largest energy user, China seeks to develop a “smarter” electrical grid to better manage the country’s growing demand for energy and improve the reliability and efficiency of the nation’s utility infrastructure.  Honeywell’s smart grid technology and expertise connects the utility and its customers so they can automatically adjust energy consumption to reduce demands on the energy grid.

For more information, read the press release.

• 3Q11 sales were up 14% to $9.3 billion versus $8.1 billion in 3Q10
    – 8% organic growth reflects continued strength in end markets
• 3Q11 earnings of $1.10 per share, an increase of 45% over $0.76 in 3Q10
    – Segment profit growth and margin expansion in all segments
    – Includes $0.04 benefit from lower tax rate; tax rate favorability expected to be offset in 4Q11
    – Includes $0.33 repositioning and other actions funded by the gain on sale of the divested Consumer Products Group (CPG) business ($0.23, discontinued operations) and OPEB curtailment ($0.10) in the quarter, which will better position the company for 2012 and beyond
• 3Q11 cash flow from operations of $0.7 billion, includes $400 million cash pension contribution
    – 3Q11 free cash flow (cash flow from operations less capital expenditures) of $884 million, excludes $400 million cash pension contribution

The company is raising its 2011 sales and EPS outlook and now expects:
• 2011 sales of $36.5 – 36.7 billion, up approximately 13% over 2010
    – Excludes the divested CPG business, treated as discontinued operations
• 2011 proforma earnings per share of $4.00 – 4.05, up 33 – 35% over 2010
    – Mark-to-market pension adjustments in both periods excluded
• 2011 free cash flow guidance of approximately $3.5 billion, prior to any cash pension contribution

“Honeywell’s strong third quarter results are a continuation of the momentum we’ve seen across our businesses in 2011,” said Honeywell Chairman and CEO Dave Cote.  “Our third quarter sales growth reflects a particularly robust Commercial Aerospace upcycle, with growth in both original equipment and aftermarket sales. It also highlights the company’s extensive innovation pipeline and increasing presence in high growth regions in all our businesses. Our long-cycle backlog continues at near record levels, with sustained strong orders growth particularly at UOP, ACS Solutions, and Commercial Aerospace. Further, our short-cycle businesses, such as Turbo Technologies, Advanced Materials, and ACS Products are performing well overall.” 

“Despite signals of slower economic growth, we expect positive organic growth to continue the rest of this year and into 2012,” concluded Cote. “The repositioning actions we took in the third quarter, funded by non-operational gains, better position our businesses for 2012 and beyond. These repositioning tailwinds, combined with our great positions in good industries, execution track record, and disciplined playbook, will be keys to our continued outperformance.”

For more information, read the press release, watch Chairman and CEO Dave Cote discuss the company’s financial performance on CNBC, or listen to a replay of the Investor Conference Call.

Eastern Illinois University (EIU) and Honeywell unveiled the school’s Renewable Energy Center (REC), one of the largest university biomass installations in the country, as part of a grand opening ceremony held on campus for students, faculty and the broader Charleston, Ill., community.

The REC is a 19,000-square-foot steam plant that will provide heat for buildings and classrooms across the university grounds. It is driven by two large biomass gasifiers — the first application of this technology in Illinois and the surrounding region — that use wood chips from forest residue for fuel. By switching to a renewable energy source, EIU will reduce annual carbon dioxide emissions by an estimated 20,000 metric tons, which is equivalent to removing more than 3,600 cars from the road, according to figures from the U.S. Environmental Protection Agency.

The new plant is one piece of a comprehensive energy- and environmental-conservation program that also includes a variety of upgrades to other university facilities and infrastructure. The product of close collaboration between EIU and Honeywell, the program is expected to cut energy use on campus in half and carbon dioxide emissions by 80 percent. All the improvements will more than pay for the work through a projected $140 million in energy savings over the next two decades — savings that are guaranteed through a performance contract with Honeywell.

For more information, watch a video about the project or read the press release.

Honeywell and Opower, the nation’s leading energy information provider, announced plans to jointly develop energy management tools to help consumers cut their energy use and expenses. The companies will combine Honeywell’s expertise in residential automation and control systems with Opower’s industry-leading energy data analytics and customer engagement techniques to create intuitive, reliable and cost-effective technology that will provide energy savings in the home and across the entire electrical grid. 

The initial platform from the companies includes a Web-connected programmable thermostat to help utilities boost energy efficiency programs, driving deeper savings in the home and maximizing return on investment. The technology will measure, analyze and report homeowners’ electricity use, including detailed information from the thermostat, which controls heating and cooling systems – equipment that accounts for almost 50 percent of all residential energy consumption. Utility customers will be able to access the data from a Web portal or mobile application to get a clear and comprehensive snapshot of their energy use and spending.

Honeywell and Opower plan to pilot the new product with select utility partners over the next few months. Honeywell also plans to sell similar technology through residential contractors and retailers in the future.

For more information, read the press release.

Honeywell Chairman and CEO Dave Cote discussed the strong performance in each of Honeywell’s four businesses, the first transatlantic flight which was powered by the company’s biofuels, and U.S. debt and deficit on “Countdown to the Closing Bell” with host Liz Claman on Fox Business News.

During the interview, Cote said each of Honeywell’s four main businesses – Aerospace, Automation and Control Solutions, Transportation Systems, and Specialty Materials – is growing.

“Right now, everything is doing well.  That’s the part that I find interesting – despite all of the dire news that we keep reading, if I take a look at order rates across the board in all of our businesses and all of our regions, everything’s doing pretty darn well right now,” said Cote.  “Whether it’s aerospace where we see growth, anything having to do with controls, which is a big part of our energy efficiency portfolio, the materials side, the chemicals, anything going into petrochemical plants, and turbochargers – all of them are doing very well.”

Cote, a member of the U.S. Commission on Fiscal Responsibility and Reform, also discussed how politics is holding up economic progress in the U.S.

“It’s important for government to recognize that they don’t just regulate business – they enable business.  And too often it seems like government views themselves as the regulator as opposed to the enabler. I wouldn’t mind more discussion about how to enable business, like with energy prices.”

For more information, watch the interview.

Within the next decade, more than 20% of electrical demand in the United States is expected to be met by building operators and homeowners more effectively optimizing their energy consumption and resources in collaboration with their utilities, say energy experts at Honeywell.
 
This shift will put energy users at the center of efforts to make the utility grid smarter and more stable. Accomplishing the transformation will include measures such as permanent reductions in energy use, temporary consumption reductions when demand spikes and strains the grid, and increased onsite generation and storage.
 
The key driver in all cases is the continued innovation and deployment of applications that connect homeowners and building owners to utilities and allow users to automate their response to changes in energy reliability and prices.
 
Read more about Honeywell’s technologies related to Smart Grid and energy efficiency or read the full press release.

Honeywell announced a $4.7-million energy conservation and building modernization program with the Washington Housing Authority & Mid-East Regional Housing Authority (WHAMERHA), which provides affordable housing to low- and moderate-income families in the Washington, N.C. area. Backed by a 20-year performance contract with Honeywell, the program features a mix of conservation measures and equipment upgrades — including new geothermal heating systems — that will help renovate and revitalize more than 560 residences across seven counties around Washington.

The program is expected to reduce the housing authorities’ energy and operating costs by almost $7.4 million over the course of the contract, all while creating more modern, comfortable homes for local families. The savings are guaranteed by Honeywell and will be used to fund the upgrades. As a result, the program will pay for itself and will not require additional taxpayer dollars. It will also create employment opportunities for local contractors and housing authority residents, boosting the area’s job market.

For more information, read the press release.

Honeywell Utility Solutions, part of the company’s Building Solutions business unit, is one of six businesses in Hawaii recently honored with the state’s Green Business Award — given in recognition of outstanding green business practices. At the Honeywell office in Honolulu those practices include subsidizing bus passes to minimize employees’ transportation footprint and using only recycled paper products and printer toners. The Hawaii Green Business Award Program is a partnership between several state, county and city departments, as well as the Hawaii Chamber of Commerce. 

Along with the company’s efforts to become more sustainable, Honeywell is helping the state reach its goal of 70 percent clean energy by 2030. The company assists in the fulfillment of rebates for residential customers of Hawaii Energy who install solar water heaters or make energy-efficient improvements. Honeywell also supports the utility’s demand response program, which helps trim energy use when consumption peaks and strains the electrical grid.

Follow @HoneywellGrid on Twitter or read more about the company’s utility-focused work.

Honeywell launched its “Digital Dashboard,” a new Website, which is accessible from the homepage of www.Honeywell.com, and iPad “App” that highlights the company’s differentiated technologies, Great Positions in Good Industries, alignment with key macro trends, and strong financial track record.  The online and mobile format improves access and is more useful and contemporary than glossy annual reports, allowing for a greater variety and quantity of content to be presented in a more compelling and updated way.

The new Website and App feature current stock price information, the latest company news, and hundreds of interactive facts, statistics, animations, photos, and videos that will better help the investment community, customers, employees, government officials, and community leaders understand the breadth and depth of Honeywell’s four businesses – Aerospace, Automation and Control Solutions, Transportation Systems, and Specialty Materials – as well as the company’s terrific growth and financial performance.

For more information, read the press release, visit www.honeywell.com, or download the corporate App from the iTunes App Store.