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Honeywell Reports Third Quarter 2015 Sales Of $9.6 Billion; EPS Of $1.60 Per Share; Confirms 2015 EPS Guidance At ~$6.10, Up ~10%


News provided by

Honeywell

16 Oct, 2015, 11:50 GMT

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- Third Quarter EPS Up 9% Reported, Up 10% Normalized at 26.5% Tax Rate

- Core Organic Sales Growth 1%*; Segment Margin Improvement of 190 bps to 19.3%

- Reported Sales Down 5% Due to F/X, Lower Pass-Through Pricing (Resins & Chemicals)

- Announced Acquisition of Elster, A Leader in Thermal Gas Solutions and Metering Technology

MORRIS PLAINS, New Jersey, Oct. 16, 2015 /PRNewswire/ -- Honeywell (NYSE: HON) today announced results for the third quarter of 2015:

Total Honeywell








($ Millions, except Earnings Per Share)     

3Q 2014

3Q 2015

Change

Sales

10,108

9,611

(5%)

Segment Margin

17.4%

19.3%

190 bps

Operating Income Margin

16.2%

18.3%

210 bps

Earnings Per Share

$1.47

$1.60

9%

Earnings Per Share (At 26.5% Tax Rate)

$1.43

$1.57

10%

Cash Flow from Operations      

1,233

1,666

35%

Free Cash Flow (1)         

974

1,389

43%





(1)  Cash Flow from Operations Less Capital Expenditures

"Honeywell delivered another strong quarter of earnings growth and exceptional margin expansion," said Honeywell Chairman and CEO Dave Cote.  "On 1% core organic sales growth, segment margins expanded 190 basis points driven by new product introductions, our key process initiatives including HOS Gold, continued productivity improvements, and the benefits from ongoing restructuring projects.  In a slower growth environment, we generated earnings growth of 10% when normalized for tax, reaching the high end of our EPS guidance range. This included $34 million in net restructuring charges in the quarter, which position us for continued long-term margin expansion. In addition, Free Cash Flow for the quarter of $1.4 billion increased 43%, with Free Cash Flow conversion of 110%.  We are confirming our full-year EPS guidance at approximately $6.10, representing estimated full-year earnings growth of approximately 10% and our sixth consecutive year of double-digit earnings growth. We also announced the $5.1 billion acquisition of Elster in July, and are on track to close in the first quarter of 2016.  Looking ahead to 2016, we're planning for a continuation of the slow growth macro environment, but we expect to deliver continued margin expansion and earnings outperformance driven by our balanced portfolio, relentless seed planting in new products and technologies, High Growth Region penetration, over $300 million of funded restructuring, and the deployment of our key process initiatives."

2015 Full-Year Guidance     





Prior Guidance

Current Guidance

Change
vs. 2014

Sales

$39.0 - $39.6B

~$38.7B

(~4%)

Core Organic Growth 

~3%

~2%


Segment Margin

18.4% - 18.6%

~18.8%

~220 bps (2)

Operating Income Margin (Ex-Pension MTM)

17.5% - 17.7%

~17.9%

~280 bps (3)

Earnings Per Share (Ex-Pension MTM)  

$6.05 - $6.15

~$6.10

~10%

Free Cash Flow (1)

$4.2 - $4.3B

$4.2 - $4.3B

8% - 10%

1.

Cash Flow from Operations Less Capital Expenditures

2.

Segment Margin ex-4Q14 $184M OEM Incentives Up ~180 bps

3.

Operating Margin ex-4Q14 $184M OEM Incentives Up ~240 bps

Third Quarter Segment Performance





Aerospace    




($ Millions)  

3Q 2014

3Q 2015

% Change

Sales

3,895

3,820

(2%)

Segment Profit 

790

833

5%

Segment Margin

20.3%

21.8%

150 bps

                                                                                               

  • Sales for the third quarter were up 2% on a core organic basis, and were down 2% reported driven by the unfavorable impact of foreign currency and the Friction Materials divestiture.  Commercial OE sales were up 4% on a core organic basis (3% reported) driven by strong Business and General Aviation (BGA) engine shipments.  Commercial Aftermarket sales were up 3% on a core organic basis (2% reported) driven by continued growth in repair and overhaul activities, partially offset by a decline in RMU (Retrofit, Modifications, and Upgrades) sales in BGA.  Defense & Space sales increased 2% on a core organic basis (1% reported) driven by strong international growth, partially offset by lower sales to the U.S. government.  Transportation Systems sales were up 1% on a core organic basis driven by new platform launches and higher gas turbo penetration on passenger vehicles, partially offset by lower commercial vehicle production.  TS sales were down 16% reported due to the unfavorable impact of foreign currency and the Friction Materials divestiture.
  • Segment profit was up 5% and segment margins expanded 150 bps to 21.8%, driven by commercial excellence, productivity net of inflation, foreign currency hedges, and the favorable impact of the Friction Materials divestiture, partially offset by the margin impact of higher OE shipments and continued investments for growth.

                           





Automation and Control Solutions   

($ Millions)  

3Q 2014

3Q 2015

% Change

Sales

3,671

3,571

(3%)

Segment Profit 

583

614

5%

Segment Margin

15.9%

17.2%

130 bps

  • Sales for the third quarter were up 3% on a core organic basis and down 3% reported driven by the unfavorable impact of foreign currency.  Energy, Safety, and Security (ESS) sales increased 4% on a core organic basis (down 1% reported) driven primarily by continued growth in Security and Fire (HSF) and Sensing & Productivity Solutions (S&PS).  Building Solutions & Distribution (BSD) sales increased 1% on a core organic basis (down 6% reported) driven by continued strength in Americas Distribution partially offset by slower Building Solutions backlog conversion.
  • Segment profit was up 5% and segment margins expanded 130 bps to 17.2% driven by productivity net of inflation, higher volume, and commercial excellence, partially offset by continued investments for growth. 
  • On July 28, 2015, we signed a definitive agreement to acquire the Elster Division of Melrose Industries plc, a leading provider of thermal gas solutions for commercial, industrial, and residential heating systems and gas, water, and electricity meters, including smart meters and software and data analytics solutions, for approximately $5.1 billion.  Elster also manufactures flow computers and regulators for the gas industry.  Elster had reported 2014 revenues of $1.7 billion.  We anticipate the acquisition will close in the first quarter of 2016, pending regulatory review.  Upon closing, we expect that Elster will primarily be integrated into our Automation and Control Solutions segment.

Performance Materials and Technologies   

($ Millions)  

3Q 2014

3Q 2015

% Change

Sales

2,542

2,220

(13%)

Segment Profit 

444

461

4%

Segment Margin

17.5%

20.8%

330 bps

  • Sales were down 3% on a core organic basis and down 13% reported driven by the unfavorable impact of foreign currency and lower raw materials pass-through pricing in Resins & Chemicals.  The decrease in core organic sales was primarily driven by lower UOP gas processing, equipment and licensing sales, and lower volume in HPS associated with projects and field products weakness, partially offset by higher UOP catalyst shipments and higher volume in Fluorine Products.
  • Segment profit was up 4% and segment margins increased 330 bps to 20.8%, driven by productivity net of inflation, commercial excellence, and the favorable impact of raw materials pass-through pricing in Resins & Chemicals (pricing model protects profit dollars), partially offset by continued investments for growth.

Honeywell will discuss its results during its investor conference call today starting at 9:30 a.m. EDT.  To participate on the conference call, please dial (888) 634-7543 (domestic) or (719) 457-2631 (international) approximately ten minutes before the 9:30 a.m. EDT start. Please mention to the operator that you are dialing in for Honeywell's third quarter 2015 earnings call. The live webcast of the investor call as well as related presentation materials will be available through the "Investor Relations" section of the company's Website (www.honeywell.com/investor).  Investors can hear a replay of the conference call from 12:30 p.m. EDT, October 16, until 12:30 p.m. EDT, October 23, by dialing (888) 203-1112 (domestic) or (719) 457-0820 (international). The access code is 669711.

Honeywell (www.honeywell.com) is a Fortune 100 diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes, and industry; turbochargers; and performance materials.  For more news and information on Honeywell, please visit www.honeywellnow.com.

This release contains certain statements that may be deemed "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, that address activities, events or developments that we or our management intends, expects, projects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are based upon certain assumptions and assessments made by our management in light of their experience and their perception of historical trends, current economic and industry conditions, expected future developments and other factors they believe to be appropriate. The forward-looking statements included in this release are also subject to a number of material risks and uncertainties, including but not limited to economic, competitive, governmental, and technological factors affecting our operations, markets, products, services and prices. Such forward-looking statements are not guarantees of future performance, and actual results, developments and business decisions may differ from those envisaged by such forward-looking statements. We identify the principal risks and uncertainties that affect our performance in our Form 10-K and other filings with the Securities and Exchange Commission.

*Throughout this press release, core organic sales growth refers to reported sales growth less the impacts from foreign currency translation, M&A and raw materials pass-through pricing in the Resins & Chemicals business of PMT. The raw materials pricing impact is excluded in instances where raw materials costs are passed through to customers, which drives fluctuations in selling prices not tied to volume growth.  A reconciliation of core organic sales growth to reported sales growth is provided in the attached financial tables.

Honeywell International Inc.

Consolidated Statement of Operations (Unaudited)

(Dollars in millions, except per share amounts)












Three Months Ended


 Nine Months Ended



September 30,


September 30,



2015


2014


2015


2014










Product sales

$         7,573


$      8,090


$      22,735


$      24,213

Service sales

2,038


2,018


5,864


5,827

Net sales

9,611


10,108


28,599


30,040










Costs, expenses and other








    Cost of products sold  (A)

5,372


5,860


16,126


17,686

    Cost of services sold  (A)

1,282


1,268


3,704


3,705



6,654


7,128


19,830


21,391

    Selling, general and administrative expenses (A)

1,202


1,344


3,674


4,058

    Other (income) expense

(24)


(21)


(64)


(159)

    Interest and other financial charges

72


77


226


236



7,904


8,528


23,666


25,526










Income before taxes

1,707


1,580


4,933


4,514

Tax expense

431


388


1,289


1,160










Net income

1,276


1,192


3,644


3,354










Less: Net income attributable to the noncontrolling interest

12


25


70


71










Net income attributable to Honeywell

$         1,264


$      1,167


$        3,574


$        3,283










Earnings per share of common stock - basic

$           1.62


$        1.49


$          4.57


$          4.18










Earnings per share of common stock - assuming dilution

$           1.60


$        1.47


$          4.51


$          4.13










Weighted average number of shares outstanding - basic

780.4


784.5


782.5


784.6










Weighted average number of shares outstanding - assuming dilution

789.5


795.0


792.1


795.6



















(A) Cost of products and services sold and selling, general and administrative expenses include amounts for repositioning and other charges, pension and other postretirement (income) expense, and stock compensation expense.

Honeywell International Inc.

Segment Data (Unaudited)

(Dollars in millions)












Three Months Ended


Nine Months Ended



September 30,


September 30,

Net Sales

2015


2014


2015


2014










Aerospace

$         3,820


$         3,895


$       11,254


$       11,756










Automation and Control Solutions

3,571


3,671


10,388


10,640










Performance Materials and Technologies

2,220


2,542


6,957


7,644










     Total

$         9,611


$       10,108


$       28,599


$       30,040



















Reconciliation of Segment Profit to Income Before Taxes












Three Months Ended


Nine Months Ended



September 30,


September 30,

Segment Profit

2015


2014


2015


2014










Aerospace

$            833


$            790


$         2,362


$         2,252










Automation and Control Solutions

614


583


1,697


1,587










Performance Materials and Technologies

461


444


1,473


1,392










Corporate

(56)


(58)


(156)


(167)










     Total segment profit

1,852


1,759


5,376


5,064










Other income (A)

15


11


39


132

Interest and other financial charges

(72)


(77)


(226)


(236)

Stock compensation expense (B)

(41)


(41)


(132)


(143)

Pension ongoing income (B)

96


62


299


187

Other postretirement expense (B)

(10)


(12)


(30)


(37)

Repositioning and other charges (B)

(133)


(122)


(393)


(453)










Income before taxes

$         1,707


$         1,580


$         4,933


$         4,514



















(A) Equity income (loss) of affiliated companies is included in segment profit.


(B) Amounts included in cost of products and services sold and selling, general and administrative expenses.

Honeywell International Inc.

Consolidated Balance Sheet (Unaudited)

(Dollars in millions)










September 30,


December 31,




2015


2014







ASSETS






Current assets:





    Cash and cash equivalents


$         6,563


$        6,959

    Accounts, notes and other receivables


7,936


7,960

    Inventories


4,441


4,405

    Deferred income taxes


739


722

    Investments and other current assets


3,800


2,145


Total current assets


23,479


22,191







Investments and long-term receivables


471


465

Property, plant and equipment - net


5,451


5,383

Goodwill


12,684


12,788

Other intangible assets - net


2,071


2,208

Insurance recoveries for asbestos related liabilities


414


454

Deferred income taxes


329


404

Other assets


1,726


1,558


Total assets


$       46,625


$      45,451







LIABILITIES AND SHAREOWNERS' EQUITY





Current liabilities:





    Accounts payable


$         5,363


$        5,365

    Short-term borrowings


4


51

    Commercial paper


3,696


1,647

    Current maturities of long-term debt


1,268


939

    Accrued liabilities


6,036


6,771


Total current liabilities


16,367


14,773







Long-term debt


5,599


6,046

Deferred income taxes


499


236

Postretirement benefit obligations other than pensions


892


911

Asbestos related liabilities


1,198


1,200

Other liabilities


3,903


4,282

Redeemable noncontrolling interest


271


219

Shareowners' equity


17,896


17,784


Total liabilities, redeemable noncontrolling interest and shareowners' equity


$       46,625


$      45,451

Honeywell International Inc.

 Consolidated Statement of Cash Flows (Unaudited)

(Dollars in millions)












Three Months Ended


Nine Months Ended



September 30,


September 30,



2015


2014


2015


2014

Cash flows from operating activities:









    Net income


$   1,276


$   1,192


$  3,644


$ 3,354

    Less: Net income attributable to the noncontrolling interest


12


25


70


71

    Net income attributable to Honeywell


1,264


1,167


3,574


3,283

    Adjustments to reconcile net income attributable to Honeywell to net cash









     provided by operating activities:









        Depreciation


168


166


503


499

        Amortization


51


61


158


199

        (Gain) loss on sale of non-strategic businesses and assets


(1)


1


(1)


11

        Gain on sale of available for sale investments


-


-


-


(105)

        Repositioning and other charges


133


122


393


453

        Net payments for repositioning and other charges


(114)


(167)


(329)


(301)

        Pension and other postretirement income


(86)


(50)


(269)


(150)

        Pension and other postretirement benefit payments


(36)


(38)


(84)


(123)

        Stock compensation expense


41


41


132


143

        Deferred income taxes


158


187


284


255

        Excess tax benefits from share based payment arrangements


(13)


(22)


(69)


(71)

        Other


(13)


(274)


90


(207)

        Changes in assets and liabilities, net of the effects of









        acquisitions and divestitures:









           Accounts, notes and other receivables


302


(104)


52


(529)

           Inventories


5


(57)


(20)


(279)

           Other current assets


(73)


49


(111)


181

           Accounts payable


11


54


(13)


154

           Accrued liabilities


(131)


97


(795)


(151)

Net cash provided by operating activities


1,666


1,233


3,495


3,262










Cash flows from investing activities:









    Expenditures for property, plant and equipment


(277)


(259)


(685)


(680)

    Proceeds from disposals of property, plant and equipment


-


1


3


12

    Increase in investments


(1,835)


(1,415)


(5,701)


(3,139)

    Decrease in investments


1,991


1,181


4,050


2,124

    Cash paid for acquisitions, net of cash acquired


-


(2)


(185)


(4)

    Proceeds from sales of businesses, net of fees paid


1


156


3


157

    Other


81


(96)


(69)


(109)

Net cash used for investing activities


(39)


(434)


(2,584)


(1,639)










Cash flows from financing activities:









    Net increase (decrease) in commercial paper


901


(400)


2,049


550

    Net (decrease) increase in short-term borrowings


(19)


1


(38)


(5)

    Proceeds from issuance of common stock


25


45


150


206

    Proceeds from issuance of long-term debt


34


34


48


79

    Payments of long-term debt


(91)


(1)


(148)


(607)

    Excess tax benefits from share based payment arrangements


13


22


69


71

    Repurchases of common stock


(1,235)


(138)


(1,721)


(689)

    Cash dividends paid


(410)


(365)


(1,261)


(1,101)

    Other


-


(7)


-


(7)

Net cash used for financing activities


(782)


(809)


(852)


(1,503)










Effect of foreign exchange rate changes on cash and cash equivalents


(236)


(144)


(455)


(114)

Net increase (decrease) in cash and cash equivalents


609


(154)


(396)


6

Cash and cash equivalents at beginning of period


5,954


6,582


6,959


6,422

Cash and cash equivalents at end of period


$   6,563


$   6,428


$  6,563


$ 6,428

Honeywell International Inc.

Reconciliation of Cash Provided by Operating Activities to Free Cash Flow (Unaudited)

(Dollars in millions)












Three Months Ended



September 30,



2015


2014







Cash provided by operating activities

$         1,666


$         1,233


Expenditures for property, plant and equipment

(277)


(259)







Free cash flow

$         1,389


$            974







Free cash flow

$         1,389


$            974


÷ Net income, attributable to Honeywell

1,264


1,167







Free cash flow conversion

110%


83%












We define free cash flow as cash provided by operating activities less cash expenditures for property, plant and equipment.






We believe that this metric is useful to investors and management as a measure of cash generated by business operations that will be used to repay scheduled debt maturities and can be used to invest in future growth through new business development activities or acquisitions, and to pay dividends, repurchase stock, or repay debt obligations prior to their maturities. This metric can also be used to evaluate our ability to generate cash flow from business operations and the impact that this cash flow has on our liquidity.

Honeywell International Inc.

Reconciliation of Segment Profit to Operating Income and Calculation of Segment Profit and Operating Income Margins (Unaudited)

(Dollars in millions)











Three Months Ended


 Nine Months Ended



September 30,


September 30,



2015


2014


2015


2014










Segment Profit


$         1,852


$        1,759


$      5,376


$      5,064










Stock compensation expense (A)


(41)


(41)


(132)


(143)

Repositioning and other (A, B)


(142)


(132)


(418)


(480)

Pension ongoing income (A)


96


62


299


187

Other postretirement expense (A)


(10)


(12)


(30)


(37)










Operating Income


$         1,755


$        1,636


$      5,095


$      4,591










Segment Profit


$         1,852


$        1,759


$      5,376


$      5,064

÷ Sales


$         9,611


$      10,108


$    28,599


$    30,040

Segment Profit Margin %


19.3%


17.4%


18.8%


16.9%










Operating Income


$         1,755


$        1,636


$      5,095


$      4,591

÷ Sales


$         9,611


$      10,108


$    28,599


$    30,040

Operating Income Margin %


18.3%


16.2%


17.8%


15.3%


(A) Included in cost of products and services sold and selling, general and administrative expenses.

(B) Includes repositioning, asbestos, environmental expenses and equity income adjustment.


We believe these measures are useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.

Honeywell International Inc.

Calculation of EPS at 26.5% Tax Rate (Unaudited)

(Dollars in millions, except per share amounts)









Three Months Ended




September 30,




2015


2014








Income before taxes


$       1,707


$       1,580








Taxes at 26.5%


452


419








Net income at 26.5% tax rate


$       1,255


$       1,161








Less: Net income attributable to the noncontrolling interest


12


25








Net income attributable to Honeywell at 26.5% tax rate


$       1,243


$       1,136








Weighted average number of shares outstanding - assuming dilution


789.5


795.0








EPS at 26.5% tax rate


$         1.57


$         1.43








We believe EPS adjusted to expected full-year tax rate at 26.5% is a measure that is useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.

Honeywell International Inc.

Reconciliation of Core Organic Sales Growth (Unaudited)







Three Months Ended


September 30,


2015

Honeywell


Reported sales growth

(5)%

Foreign currency translation, acquisitions, divestitures and other

5%

Raw materials pricing in R&C

1%



Core organic sales growth

1%



PMT


Reported sales growth

(13)%

Foreign currency translation, acquisitions, divestitures and other

5%

Raw materials pricing in R&C

5%



Core organic sales growth

(3)%





Throughout this press release, core organic sales growth refers to reported sales growth less the impacts from foreign currency translation, M&A and raw materials pass-through pricing in the Resins & Chemicals business of PMT. The raw materials pricing impact is excluded in instances where raw materials costs are passed through to customers, which drives fluctuations in selling prices not tied to volume growth.


We believe core organic sales growth is a measure that is useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.

Honeywell International Inc.

Reconciliation of Segment Profit to Operating Income Excluding Pension Mark-to-Market Adjustment and

Calculation of Segment Profit and Operating Income Margins Excluding Pension Mark-to-Market Adjustment (Unaudited)

(Dollars in billions)






2015 Guidance




Segment Profit


~$7.3




Stock compensation expense (A)


~(0.2)

Repositioning and other (A, B)


~(0.5)

Pension ongoing income (A)


~0.4

Pension mark-to-market adjustment (A)


TBD

Other postretirement expense (A)


~(0.0)




Operating Income


~$6.9

Pension mark-to-market adjustment (A)


TBD

Operating Income excluding pension mark-to-market adjustment


~$6.9




Segment Profit


~$7.3

÷ Sales


~$38.7

Segment Profit Margin %


~18.8%




Operating Income


~$6.9

÷ Sales


~$38.7

Operating Income Margin %


~17.9%




Operating Income excluding pension mark-to-market adjustment


~$6.9

÷ Sales


~$38.7

Operating Income Margin excluding pension mark-to-market adjustment %


~17.9%





(A) Included in cost of products and services sold and selling, general and administrative expenses.

(B) Includes repositioning, asbestos, environmental expenses and equity income adjustment.


We believe these measures are useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.

Honeywell International Inc.

Reconciliation of Segment Profit to Operating Income Excluding Pension Mark-to-Market Adjustment and

Calculation of Segment Profit and Operating Income Margins Excluding Pension Mark-to-Market Adjustment (Unaudited)

(Dollars in millions)









Twelve Months Ended




December 31,




2014








Segment Profit



$        6,696









Stock compensation expense (A)



(187)



Repositioning and other (A, B)



(634)



Pension ongoing income (A)



254



Pension mark-to-market adjustment (A)



(249)



Other postretirement expense (A)



(49)









Operating Income



$        5,831



Pension mark-to-market adjustment (A)



(249)



Operating Income excluding pension mark-to-market adjustment



$        6,080









Segment Profit



$        6,696



÷ Sales



$      40,306



Segment Profit Margin %



16.6%









Operating Income



$        5,831



÷ Sales



$      40,306



Operating Income Margin %



14.5%









Operating Income excluding pension mark-to-market adjustment



$        6,080



÷ Sales



$      40,306



Operating Income Margin excluding pension mark-to-market adjustment %



15.1%









(A) Included in cost of products and services sold and selling, general and administrative expenses.

(B) Includes repositioning, asbestos, environmental expenses and equity income adjustment.


We believe these measures are useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.

Honeywell International Inc.

Reconciliation of Earnings Per Share to Earnings Per Share, Excluding Pension Mark-to-Market Adjustment

Unaudited


Twelve Months Ended


December 31,


2014




EPS

$          5.33





Pension mark-to-market adjustment

0.23





EPS, excluding pension mark-to-market adjustment

 

$          5.56







We believe EPS, excluding pension mark-to-market adjustment, is a measure that is useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.


EPS utilizes weighted average shares outstanding - assuming dilution of 795.2 million. Mark-to-market uses a blended tax rate of 28.1%.





Honeywell International Inc.

Reconciliation of Cash Provided by Operating Activities to Free Cash Flow (Unaudited)

(Dollars in millions)





















Twelve Months Ended




December 31,




2014








Cash provided by operating activities



$      5,024









Expenditures for property, plant and equipment



(1,094)









Free cash flow



$      3,930















We define free cash flow as cash provided by operating activities less cash expenditures for property, plant and equipment.







We believe that this metric is useful to investors and management as a measure of cash generated by business operations that will be used to repay scheduled debt maturities and can be used to invest in future growth through new business development activities or acquisitions, and to pay dividends, repurchase stock, or repay debt obligations prior to their maturities. This metric can also be used to evaluate our ability to generate cash flow from business operations and the impact that this cash flow has on our liquidity.

Contacts:


Media         

Investor Relations

Robert C. Ferris           

Mark Macaluso 

+1 (973) 455-3388             

+1 (973) 455-2222

rob.ferris@honeywell.com 

mark.macaluso@honeywell.com  

Related Links

http://www.honeywell.com

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