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.

Honeywell has named Briand Greer President of Aerospace Asia Pacific. Greer is based in Shanghai and will report to Tim Mahoney, President and CEO of Honeywell Aerospace. Greer succeeds Mark Howes, who will be returning to Phoenix, Arizona, to continue a role within the Aerospace Leadership Team.

As president of Honeywell Aerospace in Asia Pacific, Greer will oversee direct Honeywell operations across six countries and broader field operations across a network of 14 countries in the region. 
 
“Briand has more than 20 years of experience in the aerospace industry,” said Mahoney. “Briand’s deep understanding of our technologies and capabilities, combined with his track record of growing our Aerospace business globally, will be critical to strengthening our position in Asia Pacific and help advance China’s aviation industry.”

Greer was most recently Vice President of China Growth at Honeywell Aerospace, in which he was responsible for all strategic growth initiatives with the Aviation Industry Corporation of China (AVIC) and other entities across the region. Previously, Greer has held positions with Honeywell as Vice President of Global Sales and Business Development for the Defense & Space business unit and as Vice President of Airline Sales, where he was responsible for global airline sales, business development strategies and execution.  Greer has traveled and done business in Asia for the past 15 years and has led aerospace business development in China for the last seven years.

For more information, read the press release.

Don Bateman, chief engineer and corporate fellow at Honeywell, is one of five inventors to receive this year’s National Medal of Technology from U.S. President Barack Obama. The recognition is the highest honor bestowed by the U.S. government on scientists, engineers, and inventors. Bateman is being honored as a laureate for developing and championing critical flight-safety sensors now used by aircraft worldwide, including ground proximity warning systems and wind-shear detection systems. Read more about the award.

Bateman is widely recognized in the industry as a pioneer of flight safety systems and products. Many of the technologies he first envisioned and designed proceeded through production and certification, such as the angle of attack systems, stall warning systems, ground proximity warning systems (GPWS), automatic throttle, reactive wind shear warning systems, and radar. He is the inventor or co-inventor of more than 50 U.S. patents and 90 foreign patents, and is a recipient of numerous industry awards including induction into the National Inventors Hall of Fame, the Laura Tabor Barbour Air Safety Award, Admiral Luis de Florez Safety Award, and the Flight International Aerospace Industry Personality of the Year. His dedication to aviation safety is strengthened by his personal love of flying — he has logged more than 2,200 flight hours as a private pilot.

Honeywell issued the 20th edition of its annual Business Aviation Outlook, forecasting sales and delivery of approximately $230 billion in new business jets from 2011 through 2021.  This represents approximately a two percent increase in total expected industry sales value compared to the prior 10-year horizon Honeywell forecasted in 2010.

For 2011, Honeywell Aerospace estimates deliveries of 600-650 new business jets, down approximately 15 percent from 732 in 2010 due to continued slow global economic recovery.  While 2012 deliveries are expected to be below 700 airframes, Honeywell anticipates higher delivery levels than in 2011.  While five-year buyer interest remained steady versus 2010, based on the reduced economic growth outlook and this year’s survey responses, the industry appears to be positioned to begin another period of expansion in 2012, which is consistent with Honeywell’s current industry outlook.

One bright spot is the earlier demand timing coming from Brazil, Russia, India, and China (BRIC) countries and the Middle East.  Acting on these purchase plans in 2011 and 2012 is critical to providing the industry momentum as current backlogs will not sustain delivery levels indefinitely despite recent book to bill ratios exceeding one at some manufacturers.

Honeywell surveyed more than 1,500 flight departments around the world for its annual business aviation outlook.

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.

(from left to right: Tian Min, Vice President and Chief Accountant of COMAC, and Mark Howes, President of Honeywell Aerospace’s Asia-Pacific region)

Mark Howes, President of Honeywell Aerospace’s Asia-Pacific (APAC) region, won the “Leadership Excellence Award” at the China Aerospace Laureate Awards Ceremony held at Aviation Expo 2011 in Beijing. The awards are organized by the China Aviation Media Group, China Aviation News, and Aviation Week. 

Introduced in 2005, the China Aerospace Laureate Awards are considered China’s highest honor for aviation and aerospace, recognizing organizations and individuals who have made significant contributions to the industry. The awards are supported by various institutions including the government, military, enterprises, as well as the Change Foundation and Laureate Foundation.

Howes is the first non-Chinese citizen to receive the prestigious China Aerospace Laureate Award in its seven-year history. Howes’ strategic vision and firm understanding of China’s aviation industry as well as his emphasis on the need for comprehensive and cooperative partnership have resulted in Honeywell’s strong market performance, localization, and leadership in China, according to the organizers.

Howes joined Honeywell in 1980 and has led different business segments within the company.  In 2007, he was named President of Honeywell Aerospace’s APAC region.

Read more about Honeywell’s presence in China and APAC.

Photo from left to right: Guy C. Hachey, president and chief operating officer, Bombardier Aerospace; Hélène V. Gagnon, vice president, public affairs, communications and corporate social responsibility, Bombardier Aerospace; Rob Wilson, president, Business and General Aviation, Honeywell Aerospace.

                                                                                            
Honeywell Aerospace received a Corporate Social Responsibility Supplier Recognition Program award from one of its largest customers, Bombardier Aerospace.

Guy Hachey, Bombardier Aerospace president and chief operating officer, presented the award to Rob Wilson, president of Honeywell’s Business and General Aviation business, during the Bombardier Strategic Suppliers Executive Meeting in Dorval, Quebec, Canada.

According to Bombardier executives, this award reaffirms their commitment to suppliers such as Honeywell and the overall goal of creating a high-quality, competitive, and sustainable supply chain for the future. Honeywell received the award because it operates consistently with Bombardier’s six pillars of corporate social responsibility: governing effectively, valuing employees, building responsible products, operating sustainably, engaging suppliers, and acting as a responsible citizen.                                                                      
                                                                                                
Canada-based Bombardier is a manufacturer of innovative transportation solutions including the highly successful Learjet, Challenger, and global families of business jets as well as a full line of regional aircraft.                                                                          

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.

Honeywell’s Green Jet Fuel has successfully powered the first transatlantic biofuel flight, which landed at Paris-Le Bourget Airport.

The Honeywell-operated Gulfstream G450 became the first aircraft to fly from North America to Europe with a 50/50 blend of Honeywell Green Jet Fuel and petroleum-based jet fuel, powering one of the aircraft’s Rolls-Royce engines. It was also the first business jet to be powered by a biofuel.

The flight departed Morristown, N.J., at 9 p.m. Friday and arrived in Paris about seven hours after takeoff. The jet closely followed the route taken by Charles Lindbergh’s famous first flight across the Atlantic.

The biofuel was derived from camelina, a dedicated energy crop that does not compete in the food chain as it grows in rotation with wheat acreage and can also grow on marginal land. The feedstock for this flight was grown and harvested by Sustainable Oils, a U.S.-based producer of camelina-based technology.

Honeywell has produced more than 700,000 gallons of Honeywell Green Jet Fuel from sustainable, inedible sources such as camelina, jatropha and algae for use in commercial and military testing. In each of the 16 biofuel flights conducted to date, Honeywell Green Jet Fuel proved that it meets all specifications for flight on military and commercial platforms without any modification to the aircraft or engines.

Based on lifecycle analyses, use of Honeywell Green Jet Fuel on the flight saved approximately 5.5 metric tons of net carbon dioxide emissions compared to the same flight powered by petroleum-based fuel. 

In addition to biofuels, Honeywell offers a range of technologies to help airlines reduce fuel costs — the largest single operating cost for airlines.

The flight received much attention from industry organizations and media outlets such as CNBC, Forbes and the Wall Street Journal, among others.

For more information, read the press release and watch videos of the first transatlantic biofuel flight’s takeoff and landing.

Honeywell and other leading business aviation companies from around the world gathered in Geneva for the 11th annual European Business Aviation Convention & Exhibition (EBACE).  Jointly hosted by the European Business Aviation Association (EBAA) and the National Business Aviation Association (NBAA), EBACE features exhibits, static aircraft displays, education sessions and maintenance and operations sessions for business aircraft owners and operators.

At this year’s EBACE Honeywell announced:

- Brazilian aircraft manufacturer Embraer has chosen Honeywell’s Ovation Select Cabin Management System (CMS) for its new Legacy 450/550 executive jets. Ovation Select will enable passengers to connect to the Internet and communications networks in flight.
- The Federal Aviation Administration (FAA) has certified Honeywell’s HTF7250G engine, which will power Gulfstream’s new G250 super midsize business jet. The HTF7250G is a derivative of the highly successful HTF7000 engine that has set the reliability standard for its class.
- Honeywell received FAA approval for the Primus Epic-based EASy II software package for the Dassault Falcon 900 EASy series business jet. The package includes a wide range of efficiency and safety enhancements.
- Honeywell will soon offer a new Mechanical Protection Program (MPP), which is an extended repair and replacement system that will help customers avoid downtime and manage their maintenance costs. The program will cover Environmental Control Systems and Cabin Pressure Control Systems (EPS/CPCS) for select Gulfstream and Pilatus aircraft.
- Honeywell’s HTF7000 turbofan engine fleet has accrued more than 1 million hours of operation on the Bombardier Challenger 300 business jet. The HTF7000 engine has set the benchmark for economy and reliability over the last decade.