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 can trace its roots back 125 years to 1885, when an inventor named Albert Butz patented the furnace regulator and alarm. He formed the Butz Thermo-Electric Regulator Co. in Minneapolis on April 23, 1886, and a few weeks later invented a simple, yet ingenious device that he called the “damper flapper.”

Today, Honeywell holds more than 28,000 patents or pending patents worldwide and was ranked in the top 10 among U.S. companies and the top 25 worldwide by the Intellectual Property Owners Association in the number of U.S. patents granted in 2009.

In 2009, Honeywell also successfully launched 600 new products. And, in 2010, Honeywell was named one of the “Top 10 Most Inventive Companies” in the U.S. by Forbes magazine and a “Most Innovative Company” by Fast Company.

With approximately 122,000 employees worldwide, including 19,000 engineers and scientists, Honeywell has a relentless focus on quality, delivery, value, and technology in everything we make and do.

For more information, interact with and explore some of Honeywell’s most innovative and differentiated technologies.

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.

FORTUNE magazine announced that Honeywell has been ranked 74 on the 2010 FORTUNE 500 list, which ranks all U.S. companies by revenue.

The full list of the largest U.S. companies is currently available online and related stories will appear in the May 3 issue of FORTUNE magazine, which will also be available on newsstands on April 19.

“U.S. corporations are staging a nearly unprecedented comeback that’s largely escaping notice,” said Shawn Tully, FORTUNE magazine’s editor-at-large.  “For 2009, the FORTUNE 500 lifted earnings 335%, to $391 billion, a $301 billion jump that’s the second largest in the list’s 56-year history, approaching the increase in the robust recovery of 2003.  For last year, the 500 raised their return on sales from less than 1% to 4%. That’s close to the list’s 4.7% historical average.”

For more information, read the online article and view the full list.

“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 was named one of the “Top 10 Most Inventive Companies” in the U.S. by Forbes magazine.

According to the article, “The U.S. companies that won the most patents last year also had high earnings and returns on capital, meaning they are good at wringing profits out of the money they invest.”

Honeywell holds more than 29,000 patents or pending patents worldwide and was ranked #8 among U.S. companies and #21 worldwide by the Intellectual Property Owners Association in the number of U.S. patents granted in 2008.

The ranking was compiled using data from U.S. Patent and Trademark Office filings by IFI Patent Intelligence, a unit of Dutch media company Wolters Kluwer.

Read the Forbes article.

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.

Honeywell has again been selected as one of the “Most Admired Companies” in the world by Fortune magazine. For the second consecutive year, Honeywell was ranked number three in the Aerospace and Defense industry. In addition, Honeywell ranked number two in the Aerospace and Defense industry’s “long-term” investment category, moving up from number three last year.

Fortune surveyed more than 15,000 top executives, directors and members of the financial community. Results are featured in the March magazine edition.

View this year’s winners.