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.

UOP LLC, a Honeywell company, announced that it has been selected by Samsung Total Petrochemicals Co., Ltd. to provide technologies for the production of key petrochemicals and high-quality diesel and jet fuel at its complex in Daesan, South Korea.

The integrated aromatics complex will be the first to employ the latest energy-efficient designs from UOP, allowing Samsung to reduce energy consumption by 33 percent and offering significant savings in greenhouse gas emissions compared with earlier designs. 

The facility will use several integrated UOP technologies to produce 1 million metric tons of para-xylene and 500,000 metric tons of benzene per year. Para-xylene and benzene are key aromatics used in the production of synthetic fibers and resins. According to WorldPET, a consultant for the global para-xylene industry, the demand for para-xylene in Northeast Asia is expected to increase by 80 percent over the next five years.

UOP was also selected by South Korea’s Kumho P&B Chemicals, Inc. to provide technology to produce key petrochemicals for the manufacture of plastics.  UOP Q-Max™ and UOP Phenol™ process technologies will be integrated at Kumho’s Yeosu, South Korea, facility to produce high-quality phenol. Honeywell’s UOP will provide engineering design, technology licensing, catalysts, adsorbents, and technical service for the project.

According to industry consultants, the demand for materials produced using these petrochemicals is forecasted to grow in Asia by as much as nine percent annually over the next five years, driven by demand for automobiles, appliances, and electronics.

For more information, read the press release on the Samsung Total Petrochemicals Co., Ltd. project and the press release on the Kumho P&B Chemicals facility.

UOP LLC, a Honeywell company, has been selected by Zhejiang Shaoxing Sanjin Petrochemical Co., Ltd. to provide key technology to produce propylene in China.

The win marks the sixth time this year Honeywell’s UOP technology has been selected by petrochemicals producers to produce propylene, which is used in the production of materials such as films and packaging.

The new propane dehydrogenation unit will use Honeywell’s UOP C3 Oleflex process technology to produce 450,000 metric tons annually of propylene. The unit is expected to start up in 2013 at Zhejiang’s facility in Shaoxing City, Zhejiang Province, China. In addition to technology licensing, Honeywell’s UOP will also provide engineering design, catalysts, adsorbents, equipment, staff training, and technical service for the project.

The Oleflex process uses catalytic dehydrogenation to convert propane to propylene. Compared with alternative propane dehydrogenation processes, Oleflex technology provides the lowest cash cost of production and the highest return on investment. These outcomes are enabled by low operating and capital costs, high propylene yield and reliability, and maximum operating flexibility.

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.

Honeywell and Sinochem Group signed an agreement to form a 50/50 joint venture to produce and sell blowing agents for energy efficient foam insulation in China to meet growing demand in the Asia region for more energy efficient and environmentally friendlier materials. The formation of the joint venture is subject to Chinese government approval.
 
Sinochem is one of the key state-owned enterprises under the supervision of SASAC (State-owned Assets Supervision and Administration Commission) and one of the largest companies in China.

The joint venture, to be located in Taicang, Jiangsu Province, will produce HFC-245fa, a non-ozone-depleting rigid foam blowing agent used in insulation for appliances, construction, transportation and other applications where maximum energy efficiency is required. The venture is expected to begin production in late 2013.

China and other Asian nations are rapidly adopting hydrofluorocarbon (HFC) materials, including blowing agents and refrigerants, to comply with the Montreal Protocol on Substances That Deplete the Ozone Layer. China’s Ministry of Environmental Protection requires phasing out the use of ozone-depleting blowing agent R-141b in small household appliances by 2015.

For more information, read the press release.

Honeywell Electronic Materials announced it will more than double its refining and casting capacity for high-purity copper and tin at its Spokane, Wash., facility in response to rising demand in the semiconductor industry.

Demand for the copper material has been steadily growing as new advanced chip designs continue to require high-purity copper. Additional industry growth has come as memory manufacturers transition from aluminum to copper. The use of copper and tin for advanced chip packaging applications is similarly on the rise.

The first phase of the capacity expansion will be complete in the first quarter of next year, while the second phase is expected to be completed by the middle of next year.

For more information, read the press release.

UOP LLC, a Honeywell company and a leader in petroleum refining, gas processing, petrochemical and biofuels technologies, and Honeywell Process Solutions (HPS), a provider of advanced automation controls, have opened a new office in Rio de Janeiro, Brazil, to better serve the growing oil and natural gas sector in Latin America.

The new office will employ technical experts to provide project development, engineering services and support for process technology, catalysts, adsorbents and specialty equipment from Honeywell’s UOP as well as automation control solutions from HPS.

The Latin American economy is expected to grow more than 4 percent in 2011, which is driving a projected 6 percent growth in fuel demand and 6.5 percent growth in petrochemicals over the next several years. The Brazilian energy sector is currently planning to add an additional 1.4 million barrels per day of refining capacity by 2019.

Both UOP and HPS have been partnering with the region’s oil and gas leaders since the late 1950s. In November 2010, Petrobras selected UOP to provide all of the process technologies for its two new maximum diesel refineries to be built in Maranhão and Ceara. Honeywell’s UOP is also supporting projects to expand the use of renewable fuels in Latin America. In November 2010, it worked with TAM Airlines to provide Honeywell Green Jet Fuel™, an aviation biofuel made using UOP technology, for the first biofuel flight in Brazil.

For more information, read the press release.

UOP LLC, a Honeywell company, has begun construction in Hawaii of a biofuels demonstration unit that will convert forest residuals, algae and other cellulosic biomass into green transportation fuels.

Backed by a $25 million U.S. Department of Energy (DOE) award, the Honeywell UOP Integrated Biorefinery will upgrade biomass into high-quality renewable gasoline, diesel and jet fuel. The project is part of the DOE’s efforts to help spur the creation of the domestic biofuel industry, drive domestic job creation and reduce U.S. dependence on foreign oil. The project will also support the Hawaii Clean Energy Initiative goal to achieve 70 percent clean energy by the year 2030.

Located at the Tesoro Corp. refinery in Kapolei, the Integrated Biorefinery will be used to demonstrate viability of the technology, test the fuels produced and evaluate the environmental footprint of the fuels and the process technology. The project, which will generate more than 80 new jobs during construction, is scheduled to begin initial production in 2012. It is expected to be fully operational by 2014.

For more information, read the press release.

UOP LLC, a Honeywell company, announced today that it has been selected by Zhejiang Julong Petrochemical Co. Ltd (ZJLPC) to provide key technology for a new unit to produce propylene at its facility in Pinghu City, Zhejiang Province, China.

Honeywell’s UOP will provide engineering design, technology licensing, catalysts, adsorbents, equipment, staff training and technical service for the project. The unit is expected to start up in 2013 and to produce 450,000 metric tons of propylene per year.

China’s propylene consumption accounts for more than 15 percent of worldwide demand and is growing at about five to six percent per year.

The new propane dehydrogenation unit at the facility will use UOP’s C3 Oleflex™ technology to convert propane to propylene, a material used in the production of chemicals and materials such as films and packaging.

For more information, read the press release.

Honeywell was selected by government-owned Korea Gas Corporation (KOGAS) to provide comprehensive automation solutions for its liquefied natural gas (LNG) terminals. The Honeywell solutions will ensure the seamless and efficient performance of the facilities.  This marks another multi-million dollar project order with Honeywell Process Solutions (HPS), and is the latest milestone in a very successful partnership that started in 2000.

KOGAS, the world’s largest LNG importer and the nation’s sole provider of LNG, is expanding the TongYoung Terminal and PyeongTaek LNG Terminal II to meet the rapidly growing demand for natural gas in the country. The terminals will serve several functions, including the receiving, storing and regasification of LNG, and will deliver vaporized natural gas via high-pressure transmission mains to gas users.

HPS’s Overall Management and Automation System, which includes the award-winning Experion® Process Knowledge System and Unisim®, offers KOGAS a complete process control system, which allows it to implement the latest safety measures such as emergency and process shutdown, disaster prevention, plant information, and operator training. An integrated Experion system, as well as on-the-ground simulation training provided by Honeywell, ensures that the terminals operate with maximum security and performance.

For more information, read the press release.