Honeywell today announced second quarter 2010 sales were up 8% to $8.2 billion versus $7.6 billion in the second quarter of 2009 and earnings were up 24% excluding non-cash pension expense to $0.78 per share compared to $0.63 per share in the prior year. On a reported basis, earnings per share were $0.60, flat compared to second quarter last year. Cash flow from operations was $1,090 million and free cash flow (cash flow from operations less capital expenditures) was $975 million, compared to $1,009 million in the second quarter of last year. On a year-to-date basis, cash flow from operations was $1,833 million versus $1,467 million in 2009, and free cash flow was $1,648 million compared to $1,241 million in the first half of last year.

“We believe the recovery is happening, with improving demand in both our short- and long-cycle businesses. However, given ongoing economic uncertainties, we remain cautious about the near-term outlook,” said Honeywell Chairman and CEO Dave Cote.  “Turbochargers and general industrial products continue to rebound, and we’re starting to see a sequential up-tick in commercial aerospace orders. Our improved 2010 outlook reflects our strong first half performance and the continued momentum we’re seeing in our businesses, but, as usual, we’ll maintain a conservative stance in our planning assumptions and operating disciplines for the remainder of the year.”

“We continue to focus on growth and productivity,” continued Cote. “We expect that favorable global macro trends like safety, security, and energy efficiency, combined with our continued investments in new technologies, emerging markets, and our process initiatives will enable the company to continue to grow and outperform now and over the long-term.”

Honeywell expects 2010 sales of $32.4-32.9 billion, earnings in the range of $2.40-2.50 per share on a reported basis ($3.14-3.24, excluding non-cash pension expense), and free cash flow of $3.1-3.3 billion (cash flow from operations of $3.8-4.0 billion).

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

Honeywell Chairman and CEO Dave Cote is featured as the cover story of the second quarter 2010 edition of NYSE Magazine. The story discusses how today’s Honeywell is a much different company than it was during the 2001-2002 recession because of Cote’s focus on “seed planting” – or investing for the future – in R&D, global expansion, M&A, and opportunities to help employees grow and develop.

“This time our sales were down 15 percent in one year rather than 11 percent over two years, but instead of losing money, we made money, thanks to new efficiencies that were part of our One Honeywell culture. Our free cash flow conversion was more than 150 percent this time, compared with less than 65 percent before. Instead of cutting R&D, we maintained our research budget and kept investing in our enablers and our global strategy.”

Cote says he expects Honeywell will become “bigger and more profitable, generating even more cash” because of its great positions in good industries and ties to key global macro trends, including energy, safety, and security.

Cote also outlines his solutions on “How to Solve the Energy Crisis” and discusses Honeywell’s expansive energy efficiency portfolio, which can reduce U.S. and European energy consumption by 20-25% if immediately and comprehensively adopted today.

For more information, read the full article.

Honeywell announced first quarter 2010 sales were up 3% to $7.8 billion versus $7.6 billion in 2009 and earnings were $0.50 per share versus $0.54 per share in the prior year. Excluding non-cash pension expense, earnings were up 21% to $0.68 per share compared to $0.56 per share in the prior year. Cash flow from operations was $743 million versus $341 million in the first quarter of 2009 and free cash flow (cash flow from operations less capital expenditures) was up 190% to $673 million compared to $232 million last year.
 
“Honeywell’s first quarter performance reflects better than expected improvements in many of our end markets, coupled with strong commercial execution and disciplined cost controls,” said Honeywell Chairman and Chief Executive Officer Dave Cote. “Key short cycle businesses, such as turbochargers and general industrial products, saw good organic growth in the quarter reflecting improved market conditions. We’re building a strong backlog of orders and are encouraged by continued penetration of our new products and important contracts won during the quarter. We also continue to benefit from effective execution of our big process initiatives – Honeywell Operating System, Velocity Product Development™, and Functional Transformation – contributing to strong operating leverage and margin expansion.”
 
“While the timing and shape of the recovery is uncertain and we remain conservative in our planning assumptions, the outlook for Honeywell is bright,” continued Cote. “Our great positions in good industries; links to favorable global macro trends, such as safety, security, and energy efficiency; growth in emerging regions; and strong pipeline of new products and technologies are reflected in our raised outlook for the year and should drive attractive growth over the long-term.”

Honeywell now expects 2010 sales of $31.5-32.3 billion and earnings in the range of $2.30-2.45 per share versus a previous estimate of $2.20-2.40 per share. The company also now expects free cash flow of $2.8-3.1 billion (cash flow from operations of $3.5-3.8 billion) versus a previous estimate of $2.4-2.7 billion.

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

“We continue to see signs of recovery throughout our portfolio and are encouraged by improving customer order trends in the first quarter,” said Honeywell Chairman and Chief Executive Officer Dave Cote. “The strong productivity actions taken last year are continuing to benefit the company, and along with improving economic conditions, we now expect our earnings to be near the high-end of our full year guidance range of $2.20 – 2.40.”

The company also expects to record a one-time non-cash charge of approximately $13 million after tax in the first quarter of 2010, resulting from the recently enacted Patient Protection and Affordable Care Act, including modifications made in the Health Care and Education Reconciliation Act of 2010.  The charge results from a change in the tax treatment of the Medicare Part D program and is lower than previously expected due to the delayed effective date of this provision from 2011 to 2013.

The company will issue its first quarter financial results and hold its investor conference call on Friday, April 23.

Honeywell named Krishna Mikkilineni (pictured left) and Bask Iyer (pictured right) to its Executive Management Team, reporting to Chairman and Chief Executive Officer Dave Cote, effective on April 12, 2010.  Larry Kittelberger, Senior Vice President, Technology and Operations, will retire from Honeywell after almost 13 years at the company. 

Mikkilineni will become Senior Vice President, Engineering and Operations, and will be responsible for the company’s Engineering and Integrated Supply Chain organizations, including the Honeywell Operations Council and Technology Leadership Council.  Mikkilineni will add these duties to his current role as President of Honeywell Technology Solutions, which has grown to 7,500 engineers.

In addition to his current role as Chief Information Officer, Iyer will assume additional responsibility for Honeywell’s Global Security organization and Functional Transformation efforts.

“I am proud to welcome these two proven leaders to our Executive Management Team,” said Cote.  “Krishna and Bask reflect the terrific leadership bench strength we have developed at Honeywell, and I look forward to their continued contributions as part of my leadership team.”

For more information, read the press release.

Chairman and CEO Dave Cote introduces President Barack Obama at a 2009 media briefing in support of the U.S. Reinvestment and Recovery Plan.

Honeywell Chairman and CEO Dave Cote was named to the Bipartisan National Commission on Fiscal Responsibility and Reform by U.S. President Barack Obama.  The 18-member commission, which will be co-chaired by former White House Chief of Staff Erskine Bowles and former Republican Senate Whip Alan Simpson, will make recommendations to Congress by December 1, 2010 on how to balance the U.S. budget by 2015 and improve the country’s long-term fiscal outlook. 

“I am proud that these distinguished individuals have agreed to work to build a bipartisan consensus to put America on the path toward fiscal reform and responsibility,” said President Obama. “I know they’ll take up their work with the sense of integrity and strength of commitment that the American people deserve and America’s future demands.”

Cote currently serves on the U.S. Business Roundtable, an association of CEOs of leading U.S. companies, and was named co-chair of the U.S.-India CEO Forum by President Obama in 2009. 

For more information, read the press release.

“Honeywell is a very different and much better company today,” said Honeywell Chairman and Chief Executive Officer Dave Cote.  “The processes and principles that we’ve adopted have enabled Honeywell to perform well in good times as well as tough economic times.  We are now one company, guided by the same initiatives and behaviors.  This common one Honeywell culture, together with the strength of our global portfolio, allowed us to effectively manage costs last year, rather than simply cut programs or people, which positions us well for growth in the next five years.”

At its February 22nd investor conference, Honeywell discussed important global growth factors, including favorable macro-trends, such as energy efficiency, safety, and security, and key technologies and products like refining processes for bio-renewables, Smart Grid thermostats, low-global-warming-potential refrigerants, air safety technologies, and turbochargers.  

For more information, read the press release.

Honeywell Chairman and CEO Dave Cote appeared on CNBC’s “Mad Money” where he talked about energy efficiency and the U.S. economy with TV show host and respected money manager, Jim Cramer.

Cramer believes the U.S., led by large corporations that provide energy-related products and supply jobs, will emerge from this economic crisis stronger than before.

“Honeywell is more profitable than anyone could have imagined it would be at this point in the business cycle and this isn’t just any old industrial company,” said Cramer. “Honeywell’s products uniquely involve the controlling and saving of energy. That’s the story here.”

Nearly 50 percent of Honeywell’s product portfolio company-wide is linked to energy efficiency and renewable energy. Simply by using the Honeywell technologies available in the marketplace today, the U.S. alone could reduce energy consumption by 15 to 20 percent and play a key role in curbing and reducing global greenhouse gas emissions.

“We need to be driving energy efficiency in the [U.S.] for two big reasons,” said Cote. “The first one is economic security. You get economic security by making sure that you’re as self-sufficient as possible in energy. The second one is you need low-cost power for an economy to compete, and energy efficiency is the lowest cost power you can get.”

For more information, watch the full interview.

Honeywell Chairman and CEO Dave Cote appeared on CNBC’s “Closing Bell” news program on Friday, October 30, where he discussed positive trends in the global economy and their effects on Honeywell’s great positions in good industries with host Maria Bartiromo.

“The [economic] mood is more hopeful now than I’ve seen it in awhile,” said Cote.  “The trend is clearly becoming positive.  I believe it’s going to stick and I believe you’re going to see positive numbers from here on out.”

In addition to discussing the current strength of the U.S., Chinese and Middle Eastern economies, Cote also talked about encouraging indicators in the turbo and business jet industries.

Watch the full CNBC interview.

Chairman and CEO Dave Cote and members of Honeywell’s Board of Directors rang the Opening Bell® at the New York Stock Exchange (NYSE) in New York City today to celebrate the company’s 80th year of trading on the NYSE.

Watch a replay of the bell ringing.