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 was selected to overhaul the video surveillance system at Casino Niagara, one of the top tourism attractions in Canada’s famed Niagara Falls. The project includes retrofitting the existing surveillance network with IP video technology that will allow casino officials to use a single command and control center to view and remotely manage the systems at both Casino Niagara and its nearby sister facility, Fallsview Casino.

The project calls for Honeywell to provide its MAXPRO® VMS (video management system) and VideoBloX video and audio matrix to oversee the casino, which encompasses 1,600 slot machines, 28 gaming tables, a 12-table poker room and several other attractions. Additionally, it will upgrade the casino’s VCR recording system to an enterprise-wide digital recorder network.

In addition to MAXPRO VMS, Honeywell’s wide portfolio of entry level-to-enterprise IP offerings includes IP-based network video recorders (NVRs), hybrid digital video recorders (DVRs) and a full line of cameras. These offerings are designed to help organizations simplify the transition from analog to IP video surveillance.

For more information, read the press release or visit the Honeywell Security website.

Honeywell announced its 2012 financial outlook including:

 • Sales of $37.8-38.9 billion, up 4-7% over 2011 estimated sales
        – 4-6% organic growth expected
  • Earnings per share (EPS) of $4.25-4.50, an increase of 6-12% over prior year
        – Strong sales conversion drives 40-70 basis points margin expansion
        – Proforma EPS from continuing operations up 13-19%
        – Mark-to-market pension adjustments in both periods excluded
  • Free cash flow (cash flow from operations less capital expenditures) of approximately $3.5 billion
       – Free cash flow conversion of approximately 100%
       – 2012 free cash flow guidance excludes any cash pension contributions

The company also reaffirmed its 2011 full-year guidance, expecting:
  • Sales of approximately $36.5 billion, up 13% over 2010
       – Excludes the divested CPG business, treated as discontinued operations
  • Proforma earnings per share of approximately $4.03, up 34% over 2010
       – Mark-to-market pension adjustments in both periods excluded
  • Free cash flow guidance of approximately $3.5 billion, excluding cash pension contributions

“Honeywell’s 2011 performance significantly adds to our performance track record and highlights the strength of our portfolio, robust new product pipeline, and expansion in high-growth regions,” said Honeywell Chairman and Chief Executive Officer Dave Cote.  “Our long-cycle backlog continues at record levels, with sustained strong orders growth particularly at UOP, Process and Building Solutions, and Commercial Aerospace. Further, our short-cycle businesses, such as Turbo Technologies, Advanced Materials, and ACS products performed well throughout 2011.”

“We’re planning for a more challenging macro environment in 2012,” continued Cote.  “While key economic indicators show slower year-over-year growth in GDP and industrial production globally, we expect to grow faster than the end markets we serve, mainly driven by our robust long-cycle backlog of almost $16 billion, strong commercial aerospace aftermarket growth, and continued contributions from our short-cycle businesses. We feel confident that our portfolio mix and continued margin expansion will deliver strong earnings growth and free cash flow conversion in 2012.”

For more information, 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.

Honeywell emerged as the “Overall Best Brand of Programmable Thermostats” in the United States in Frost & Sullivan’s independent research, “2011 U.S. Smart Appliances–A Customer Perspective on Demand-Response.”

In the survey of 1,013 U.S. homeowners, 646 owned programmable thermostats and rated various brands on several specific points. Homeowners using Honeywell programmable thermostats rated their thermostats higher than users of any other major brand.

“Honeywell users appreciate the features offered by its brand – 33 percent cite that having the ‘best features’ is their main reason for using Honeywell, compared to nine percent among users of other brands stating the same,” said Christina Alfaro, a Research Analyst with Frost & Sullivan’s Customer Research Team. “Supporting Honeywell’s overall best rating is that it rated well for other factors too, such as ease-of-use, energy efficiency, and cost savings.”

Read more about Honeywell’s programmable thermostats.

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 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.

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.