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.

• 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.

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.

Honeywell won a five-year, $450 million contract with NASA’s Goddard Space Flight Center (GSFC) to provide Ground Systems and Mission Operations (GSMO) services for the agency’s fleet of scientific research satellites.

The NASA research satellite program is focused on gaining a better understanding on key issues such as planetary exploration, natural disaster characterization, climate change, ground topography mapping, agricultural efficiency, and electromagnetic effects on the earth.  Honeywell will work with GSFC to help extend the life of existing research satellites and increase optimization for new satellites that will support greater scientific space research activities in the future.

As part of the contract, Honeywell will also develop concepts of operations, provide systems engineering, and integrate and test new satellite ground systems from launch to orbit operations. The contract will continue through October 2016.

For more information, read the press release.

Honeywell’s Voyager™ 1200g hand-held single-line laser scanner has been selected as a “Best Channel Product” by Business Solutions Magazine (BSM). 

Tailored to meet the demanding needs of scan-intensive retail environments, the Voyager 1200g scanner performs extremely well at reading any type of linear bar code, from poor quality and damaged codes, to high density and GS1 DataBar™ codes. 

Selected from the vendors ranked highest in the BSM January 2011 issue, the web-based “Best Channel Product” survey collected more than 11,700 votes. To ensure accuracy, the results were tabulated by the BSM editorial staff in partnership with Penn State University. The scanner’s superior reliability and aggressive scan performance excelled in multiple categories including richness of features/functionality and product reliability/durability.

Read more about Honeywell’s technologies related to Scanning and Mobility.

Four of Honeywell’s products were recognized for excellence in product design in the annual Dealer Design Awards Program sponsored by The Air Conditioning Heating and Refrigeration News (The ACHR News), the leading trade magazine in the heating, ventilating, air conditioning, and refrigeration industries.

The honor marks the third consecutive year that Honeywell products have been recognized with Dealer Design awards.

An independent panel of approximately 30 contractors served as judges in the contest which had 127 product entries from different industry brands. Honeywell’s R7284U digital universal oil primary unit, Prestige IAQ programmable thermostat, TrueEASE whole-house humidifier, and JADE economizer each won an award.

• The R7284U digital universal oil primary unit, which won a Silver award in the Test and Measurement category, allows an oil service technician to determine the root cause of a system problem and access every setting and diagnostic feature of the control without having to use additional tools. The display lets oil dealers know where to look for the problem and provides actionable diagnostics that can save the oil dealer installation time and reduce call-backs.
• Honeywell’s Prestige® IAQ programmable thermostat received an Honorable Mention in the Residential Controls Products category. Prestige IAQ is a high-definition, full color, touchscreen, wireless-enabled, programmable thermostat. Designed for homes, the thermostat helps homeowners maximize savings by reducing heating and cooling costs. It also allows homeowners to manage their indoor air quality (IAQ) equipment settings, like a whole-house humidifier, from a single control.
• Honeywell’s TrueEASE™, a complete family of evaporative whole-house humidifiers, received an Honorable Mention in the Indoor Air Quality category. TrueEASE incorporates multiple patent-pending innovations including configurable and flexible design, water distribution across the humidifier pad, and an automatic damper that opens and closes only when humidity is needed, making an HVAC system more energy efficient.
• JADE™, recognized with an Honorable Mention in the Commercial Controls category, is an economizer that uses outdoor air to cool and ventilate an indoor space. JADE includes a LCD screen that delivers continuous messages, important diagnostics, and system status.

For more information, read the ACHR News article on this year’s awards and about Honeywell’s 2009 and 2010 recognitions.

Pictured: Norm Gilsdorf, Honeywell Process Solutions (HPS) President

The 2011 Honeywell Process Solutions’ (HPS) Users Group (HUG) drew more than 1,000 automation users and industry experts from 34 countries at this year’s symposium.

The event offered users a full agenda of more than 100 presentations from customers and Honeywell experts, technology demonstrations, and networking opportunities.

The theme, “Where Technology Shapes Solutions,” resonated throughout the event, including keynote addresses made by Norm Gilsdorf, HPS President, and Tracey Haslam, HPS Americas Vice President, who addressed business challenges and trends facing global economies. Jason Urso, HPS Chief Technology Officer also provided users with a first-hand look at Honeywell’s technology roadmap and new advances for process industries that have been introduced by HPS and other Honeywell businesses.

For more information about the event, including editorial coverage and presentation materials, please visit the Honeywell Users Group website.

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 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.

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.