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 Turbo Technologies (HTT), the global leader in automotive turbocharger development, showcased an industry first turbocharger application for micro diesel engines as well as its expanded portfolio of turbochargers featuring global technologies not previously offered in India at the 11th Auto Expo 2012.

HTT developed a turbo application with optimized aerodynamics for micro 2-cylinder diesel engines below 1.0L. This application is currently being deployed in India on 0.8L engines. Honeywell also featured other industry innovations such as its variable geometry VNT turbos including its third generation VNT combined with a rotary electric actuator – the first time this combination has been available in India.         

Within the light vehicle segment, turbo penetration in India has grown from 27 percent in 2010 to 31 percent in 2011. It is expected to reach more than 40 percent penetration by 2016. This rapid growth in India is consistent with global penetration growth estimates as manufacturers use turbocharging as an enabler for engine downsizing. A downsized turbocharged engine allows manufacturers to meet higher fuel economy standards and reduced emissions and yet maintain the power and performance of the larger naturally-aspirated engine it replaces.

For more information, read the press release.

Honeywell Turbo Technologies is an active member of a coalition which recently published a white paper authored by former Transportation and Commerce Secretary Norman Mineta supporting technology neutral policies as policymakers begin to implement new CAFE (Corporate Average Fuel Economy) regulations announced by U.S. President Barack Obama.

The white paper details Secretary Mineta’s support for technology neutral policies which do not favor one technology over another through consumer incentives, federal subsidies, testing standards, or technology specific credits. Recent policies have favored electric vehicles but have failed to help gain wide-spread acceptance from consumers or enhance the likelihood of significant growth of electrics in the United States. The white paper cites data suggesting significant technology advancements in conventional gasoline and diesel engines provide the most economical and efficient path to achieve President Obama’s new CAFE standards.

“Now that the government has set aggressive performance targets, it is critical that the Administration and regulators allow markets the freedom to innovate and choose the best technology to reach those targets. In this era of severe budget restraints, lawmakers should address the inequities in consumer incentives by eliminating language that favors one technology over another,” Secretary Mineta said.

The white paper was published by the U.S. Coalition for Advanced Diesel Cars, a national coalition supported by Honeywell focused on promoting technology neutral policies and the energy efficiency and environmental benefits of advanced clean diesel technology.

For more information, read the full white paper.

• 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, the global leader in automotive turbocharger development, unveiled its TwoStage compact turbocharger as well as its second generation of gasoline turbochargers at the Frankfurt Motor Show.  The introductions in Frankfurt reflect Honeywell’s unique abilities to provide technology solutions designed for optimal performance across multiple engine platforms.

The increase in vehicle launches featuring turbochargers is consistent with Honeywell’s expectations for increasing global turbo demand, especially in the area of gasoline turbocharging. In Europe, Honeywell expects the demand for gasoline turbocharging to drive overall turbo penetration to 85 percent of the market in five years and close to 100 percent by the end of the decade.

Honeywell’s new TwoStage compact turbocharger for Audi was on display in combination with its new high-performance 3.0L V6 TDI engine for its A6 and A7 models. This specific application takes advantage of sequentially connecting a small turbo with a large turbo to provide exceptional engine response at all speeds.

One of Honeywell’s second generation gasoline turbochargers developed for the new BMW 3 Series and its 1.6L 4-cylinder engine was also on display in Frankfurt. This turbocharged engine represents the newest industry benchmark for small engine performance and drivability. 

Read more about Honeywell’s Turbo Technologies or take a video tour of Honeywell innovations on display at the Frankfurt Motor Show with Craig Balis, vice president of Engineering for Honeywell Turbo Technologies.

Honeywell Turbo Technologies, the leading global developer of automotive turbochargers, is providing the technology automakers need to achieve the next generation of U.S. fuel economy standards. Honeywell turbos allow manufacturers to downsize from larger engines to smaller ones which are more fuel efficient, have improved emissions and still maintain the performance characteristics American consumers want.

Honeywell expects U.S. light vehicle turbo penetration to continue to increase dramatically. During the past year, light vehicle turbo penetration in the U.S. has gone from 6 to 10 percent and is expected to more than double to 23 percent by 2016. Turbocharging enables up to 20 percent better fuel economy on gas vehicles, and up to 40 percent better fuel economy on diesel vehicles, with no compromise on performance and at a significant discount to hybrid and electric vehicles.

Honeywell supplies technology solutions to nearly every major auto and truck maker in the world for gas, diesel, compressed natural gas (CNG) and hybrid engine applications. Honeywell will debut more than 100 new turbo engine applications this year alone on passenger and commercial vehicles across the globe and has more than 500 currently in its pipeline.

For more information, read the press release.

Automotive News Europe (ANE) recognized Pasquale Abruzzese, Vice President of Worldwide Integrated Supply Chain for Honeywell Transportation Systems, as a “Rising Star” in the European auto industry. This new award honors the best and brightest in the automotive industry and is an opportunity for the magazine to honor automotive executives who are currently in middle and upper management and are likely to become senior and C-suite leaders. 

According to the magazine, “They are the trendspotters and entrepreneurs who stand to reap the biggest rewards over the next decade; they are the individuals rising through the ranks and climbing the career ladder.”

“You’re only as good as the people who work for you,” said Abruzzese. “I strive every day to make sure the team I have is full of top talent and that I recognize and promote them so they remain challenged and motivated.”

Abruzzese was part of the inaugural group of Rising Stars and accepted his award, together with 27 other recipients, at a gala dinner held in the group’s honor at the 14th annual Automotive News Europe Congress. This event, held in Cologne, Germany, is the most important English language automotive industry conference in Europe.

For more information, read the full Automotive News article on the award and profile on Abruzzese.

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.

Pictured left to right:  Mike Hanley, Global Automotive Leader, Ernst & Young; Jeff Kittridge, Applications Engineering Manager at Honeywell; Peter Brown, Publisher of Automotive News.

Honeywell Transportation Systems has been named a winner of the 2011 Automotive News PACE Environmental Award for its VNT DualBoost Turbo.

Honeywell received the award at the recent Automotive News Green Car Conference in Novi, Michigan, and was one of four recipients of this honor recognizing “contributions to the automotive industry which also have a positive effect on the health of the environment.” Honeywell and its VNT DualBoost Turbo were eligible for the award having been previously honored in April by Automotive News for excellence in automotive innovation and execution.

The VNT DualBoost Turbo brought to market five distinct innovations to provide Ford Motor Company’s Power Stroke engine with improved engine performance, fuel economy, and responsiveness – all while helping Ford to meet new standards mandating an 80 percent reduction in nitrogen oxide emissions.

For more information, read the press release.

In April 2011, Honeywell’s Turbo Technologies facility in Waterford, Ireland, became the company’s first Transportation Systems site in Europe to earn the EN / BS 16001: 2009 Energy Standard. The overall aim of this standard is to establish the systems and processes required to improve energy efficiency on site through the management of energy usage. 
 
In order to earn this standard, the employees at the Waterford site created an “Energy Management System” to develop and implement their energy reduction policy and objectives. The plan establishes a framework to set and monitor the plant’s daily energy targets and looks to invest in energy efficient technologies and renewable resources when possible. It also takes into account the senior management’s commitment to allocate resources for energy reduction and control.

Read more about Honeywell’s global commitment to sustainability.