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HON Honeywell International Incorporated

159.07
0.00 (0.00%)
03 May 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Honeywell International Incorporated LSE:HON London Ordinary Share COM STK USD1
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 159.07 0.00 01:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Honeywell Intl 3rd Quarter Results

21/10/2016 11:53am

UK Regulatory


 
TIDMHON 
 
Honeywell Reports Third Quarter 2016 Sales Of $9.8 Billion, Up 2%; Earnings Per 
                                Share Of $1.60 
 
 
 
=- 3Q16 Reported EPS of $1.60, or $1.67 Excluding $0.07 Deployed to 
Restructuring 
 
=- 4Q16 EPS Guidance of $1.74-$1.78 (Ex-Pension MTM)(1), Up 10%-13% 
 
=- Full-Year EPS Guidance of $6.60-$6.64 (Ex-Pension MTM)(1), Up 8%-9% 
 
MORRIS PLAINS, N.J., Oct. 21, 2016 -- Honeywell (NYSE: HON) today announced its 
results for the third quarter of 2016: 
 
Total Honeywell 
 
($ Millions, Except Earnings Per Share)                        3Q 2015 3Q 2016  Change 
 
Sales                                                            9,611   9,804    2% 
 
Segment Margin                                                   19.3%   17.5% (180) bps 
 
Operating Income Margin                                          18.3%   15.6% (270) bps 
 
Earnings Per Share                                               $1.60   $1.60   Flat 
 
Earnings Per Share (Excluding $0.07 Deployed to Restructuring)           $1.67    4% 
 
Cash Flow from Operations                                        1,693   1,554   (8%) 
 
Free Cash Flow2                                                  1,416   1,280   (10%) 
 
__________________________ 
 
1 Excludes Impact From Contemplated Q4 Debt Refinancing 
 
2 Cash Flow from Operations Less Capital Expenditures 
 
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. 
 
"The third-quarter results came in as we outlined on our October 7 conference 
call. We are well-positioned for double-digit earnings growth in the fourth 
quarter, leading to 8%-9% earnings growth in 2016," said Honeywell Chairman and 
CEO Dave Cote. "It was a quarter of important changes in many areas. We split 
the former Automation and Control Solutions business into two new reporting 
segments; closed the acquisition of Intelligrated and sold Honeywell Technology 
Solutions, Inc.; and spun off our Resins and Chemicals business as a 
freestanding publicly-traded company named AdvanSix Inc. (NYSE: ASIX). We also 
funded approximately $250 million in restructuring and other actions from a 
$0.07 increase in first- and second-quarter EPS caused by an accounting 
standard adoption, and the $0.14 gain related to the sale of our government 
services business. These actions will drive more than $175 million of benefits 
in 2017 alone. We also intend in the fourth quarter to refinance outstanding 
debt maturing in 2017-2019, which will lower interest expense by approximately 
$60 million annually beginning in 2017." 
 
"Combined with our ongoing productivity initiatives driven by the Honeywell 
Operating System, and the strength of our underlying portfolio, the actions we 
announced this quarter position Honeywell for future outperformance," continued 
Cote. "Moving ahead, we are targeting low single-digit core organic sales 
growth, continued segment margin improvement, and a double-digit increase in 
EPS in 2017. Darius Adamczyk, Chief Operating Officer, and Tom Szlosek, Chief 
Financial Officer, will provide more details about 2017 during our annual 
outlook call in December." 
 
"We are committed to creating sustainable long-term shareowner value," 
concluded Cote. "We remain focused on disciplined capital deployment, 
aggressive organic sales growth, seed planting for new products and 
technologies, penetrating High Growth Regions, and executing on our key process 
initiatives. 2017 will be an inflection year for several core business units: 
growing demand for our UOP catalysts and modular equipment, JetwaveT and other 
products and services tied to connected aircraft, further turbo penetration, 
and strong sales growth from Solstice® (HFOs), our line of low-global-warming 
refrigerants and blowing agents. Revenue and earnings from the nearly $8 
billion in M&A investments during the past two years should also be a 
significant contributor to 2017 performance. We are confident in our position 
and expect to continue to outperform." 
 
The Company's current 2016 full-year guidance, which reflects our October 6, 
2016 announcement, is as follows: 
 
2016 Full-Year Guidance 
 
                                         Current Guidance Change vs. 2015 
 
Sales                                      $39.4 - $39.6      2% - 3% 
 
Core Organic Growth                         (1%)-(2%) 
 
Segment Margin                                18.1%        (70) bps3 
 
Operating Income Margin (Ex-Pension MTM)      17.6%        (30) bps4 
 
Earnings Per Share (Ex-Pension MTM)5      $6.60 - $6.64       8% - 9% 
 
Free Cash Flow6                            $4.2 - $4.3B     (2%) - (5%) 
 
__________________________ 
 
3 Segment Margin ex-M&A Down (10) bps 
 
4 Operating Margin ex-M&A Up 30 bps 
 
5Excludes Impact From Contemplated Q4 Debt Refinancing 
 
6 Cash Flow From Operations Less Capital Expenditures 
 
Segment Performance 
 
Aerospace 
 
($ Millions)   3Q 2015 3Q 2016 % Change 
 
Sales            3,820   3,601   (6%) 
 
Segment Profit     833     663   (20%) 
 
Segment Margin   21.8%   18.4% (340) bps 
 
  * Sales for the third quarter were down (6%) on a reported and core organic 
    basis. The decrease was primarily driven by the unfavorable impact of 
    third-quarter OEM incentives, lower volumes in Business and General 
    Aviation, program completions in the U.S. Space and international Defense 
    businesses, and continued weakness in the commercial helicopter business. 
    This was partially offset by increased Air Transport OE deliveries and 
    repair and overhaul activities, and new turbo platform launches on 
    passenger vehicles in Transportation Systems. 
  * Segment profit was down (20%) and segment margin declined (340) bps to 
    18.4%, due to higher Aerospace OEM incentives and lower volumes in Business 
    Jet and Defense, partially offset by productivity net of inflation and 
    commercial excellence. 
 
Home and Building Technologies 
 
($ Millions)   3Q 2015 3Q 2016  % Change 
 
Sales            2,313   2,701    17% 
 
Segment Profit     408     441     8% 
 
Segment Margin   17.6%   16.3% (130) bps7 
 
__________________________ 
 
7 Segment Profit Down (20) bps Ex-M&A 
 
  * Sales for the third quarter were up 17% reported and up 5% on a core 
    organic basis. The increase was primarily driven by continued strength in 
    our Distribution and Building Solutions businesses, and Products growth in 
    Environmental & Energy Solutions and in China. The difference between 
    reported and core organic sales was due to the favorable impact from 
    acquisitions, primarily Elster. 
  * Segment profit was up 8% and segment margin declined (130) bps to 16.3%, 
    driven by acquisition amortization and integration costs, continued growth 
    investments in salespeople and research and development, and the 
    unfavorable mix impact of increased sales in Building Solutions and 
    Distribution, partially offset by benefits from previously-funded 
    restructuring, higher sales volumes, and commercial excellence. 
 
Performance Materials and Technologies 
 
($ Millions)   3Q 2015 3Q 2016 % Change 
 
Sales            2,279   2,329    2% 
 
Segment Profit     474     503    6% 
 
Segment Margin   20.8%   21.6%  80 bps 
 
  * Sales for the third quarter were up 2% reported. Core organic sales were 
    down (3%) primarily driven by declines in UOP gas processing, licensing, 
    and engineering, partially offset by strong catalyst shipments and 
    conversion of global mega projects in Process Solutions. The difference 
    between reported and core organic sales was due to the favorable impact 
    from acquisitions, partially offset by the unfavorable impact of foreign 
    currency and market pricing headwinds in Resins & Chemicals. 
  * Segment profit was up 6% and segment margins expanded 80 bps to 21.6%, 
    driven by productivity net of inflation, higher catalyst volumes, and 
    acquisition integration excellence, partially offset by continued 
    investments for growth. 
 
Safety and Productivity Solutions 
 
($ Millions)   3Q 2015 3Q 2016 % Change 
 
Sales            1,199   1,173   (2%) 
 
Segment Profit     193     172   (11%) 
 
Segment Margin   16.1%   14.7% (140) bps 
 
  * Sales for the third quarter were down (2%) reported. Core organic sales 
    were down (8%) in the quarter as a result of lower volume in Productivity 
    Solutions associated with the USPS contract (which was completed in the 
    third quarter of 2015), continued channel headwinds, and lower volumes in 
    our Safety business. The difference between reported and core organic sales 
    was due to the favorable impact from acquisitions, primarily Intelligrated. 
  * Segment profit was down (11%) and segment margin contracted (140) bps to 
    14.7%, primarily driven by lower volumes and acquisition amortization and 
    integration costs, partially offset by restructuring benefits and 
    commercial excellence. 
 
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 
(877) 795-3635 (domestic) or (719) 325-4816 (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 2016 earnings call or provide the 
conference code HON3Q16. 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 
21, until 12:30 p.m. EDT, October 28, by dialing (888) 203-1112 (domestic) or 
(719) 457-0820 (international). The access code is 7056857. 
 
Honeywell (http://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.honeywell.com/newsroom. 
 
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. 
 
Contacts: 
 
Media                                              Investor Relations 
 
Robert C. Ferris                                   Mark Macaluso 
 
(973) 455-3388                                     (973) 455-2222 
 
rob.ferris@honeywell.com                           mark.macaluso@honeywell.com 
 
 
                                                       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, 
 
                                                                        2016              2015                2016              2015 
 
Product sales                                                     $           7,744   $       7,573       $       23,398    $       22,735 
 
Service sales                                                                 2,060           2,038                5,919             5,864 
 
Net sales                                                                     9,804           9,611               29,317            28,599 
 
Costs, expenses and other 
 
    Cost of products sold  (A)                                                5,594           5,372               16,545            16,126 
 
    Cost of services sold  (A)                                                1,309           1,282                3,726             3,704 
 
                                                                              6,903           6,654               20,271            19,830 
 
    Selling, general and administrative expenses (A)                          1,367           1,202                3,976             3,674 
 
    Other (income) expense                                                    (180)            (24)                (197)              (64) 
 
    Interest and other financial charges                                         82              72                  252               226 
 
                                                                              8,172           7,904               24,302            23,666 
 
Income before taxes                                                           1,632           1,707                5,015             4,933 
 
Tax expense                                                                     384             431                1,214             1,289 
 
Net income                                                                    1,248           1,276                3,801             3,644 
 
Less: Net income attributable to the noncontrolling interest                      8              12                   26                70 
 
Net income attributable to Honeywell                               $          1,240   $       1,264      $         3,775   $         3,574 
 
Earnings per share of common stock - basic                        $            1.62  $         1.62     $           4.93  $           4.57 
 
Earnings per share of common stock - assuming dilution            $            1.60  $         1.60     $           4.86  $           4.51 
 
Weighted average number of shares outstanding - basic                         763.7           780.4                765.0             782.5 
 
Weighted average number of shares outstanding - assuming dilution             774.4           789.5                776.3             792.1 
 
(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                                                          2016                            2015                                2016                      2015 
 
Aerospace                                                                $           3,601   $           3,820                    $         11,085                $         11,254 
 
Home and Building Technologies                                                       2,701               2,313                               7,854                           6,686 
 
Performance Materials and Technologies                                               2,329               2,279                               7,044                           7,137 
 
Safety and Productivity Solutions                                                    1,173               1,199                               3,334                           3,522 
 
Corporate                                                                                -                   -                                   -                               - 
 
     Total                                                               $           9,804   $           9,611                    $         29,317                $         28,599 
 
                                                             Reconciliation of Segment Profit to Income Before Taxes 
 
                                                                      Three Months Ended                                                         Nine Months Ended 
 
                                                                        September 30,                                                              September 30, 
 
Segment Profit                                                     2016                            2015                                2016                      2015 
 
Aerospace                                                                $             663   $             833                   $           2,252               $           2,362 
 
Home and Building Technologies                                                         441                 408                               1,213                           1,088 
 
Performance Materials and Technologies                                                 503                 474                               1,484                           1,517 
 
Safety and Productivity Solutions                                                      172                 193                                 495                             565 
 
Corporate                                                                             (59)                (56)                               (157)                           (156) 
 
     Total segment profit                                                            1,720               1,852                               5,287                           5,376 
 
Other income (expense) (A)                                                             169                  15                                 174                              39 
 
Interest and other financial charges                                                  (82)                (72)                               (252)                           (226) 
 
Stock compensation expense (B)                                                        (49)                (41)                               (145)                           (132) 
 
Pension ongoing income (B)                                                             146                  96                                 447                             299 
 
Other postretirement income (expense) (B)                                                7                (10)                                  24                            (30) 
 
Repositioning and other charges (B)                                                  (279)               (133)                               (520)                           (393) 
 
Income before taxes                                                      $           1,632   $           1,707                   $           5,015               $           4,933 
 
     (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, 
 
                                                                                                                     2016                                      2015 
 
ASSETS 
 
Current assets: 
 
    Cash and cash equivalents                                                                                  $           6,431                               $           5,455 
 
    Accounts, notes and other receivables                                                                                  8,627                                           8,075 
 
    Inventories                                                                                                            4,587                                           4,420 
 
    Investments and other current assets                                                                                   2,189                                           2,103 
 
          Total current assets                                                                                            21,834                                          20,053 
 
Investments and long-term receivables                                                                                        639                                             517 
 
Property, plant and equipment - net                                                                                        5,725                                           5,789 
 
Goodwill                                                                                                                  17,846                                          15,895 
 
Other intangible assets - net                                                                                              4,847                                           4,577 
 
Insurance recoveries for asbestos related liabilities                                                                        433                                             426 
 
Deferred income taxes                                                                                                        335                                             283 
 
Other assets                                                                                                               1,897                                           1,776 
 
          Total assets                                                                                          $         53,556                                $         49,316 
 
LIABILITIES AND SHAREOWNERS' EQUITY 
 
Current liabilities: 
 
    Accounts payable                                                                                           $           5,418                               $           5,580 
 
    Commercial paper and other short-term borrowings                                                                       5,601                                           5,937 
 
    Current maturities of long-term debt                                                                                     649                                             577 
 
    Accrued liabilities                                                                                                    6,545                                           6,277 
 
          Total current liabilities                                                                                       18,213                                          18,371 
 
Long-term debt                                                                                                             9,608                                           5,554 
 
Deferred income taxes                                                                                                        701                                             558 
 
Postretirement benefit obligations other than pensions                                                                       477                                             526 
 
Asbestos related liabilities                                                                                               1,278                                           1,251 
 
Other liabilities                                                                                                          3,905                                           4,348 
 
Redeemable noncontrolling interest                                                                                             3                                             290 
 
Shareowners' equity                                                                                                       19,371                                          18,418 
 
     Total liabilities, redeemable noncontrolling interest and shareowners' equity                              $         53,556                                $         49,316 
 
 
 
 
 
                                                                                Honeywell International Inc 
 
                                                                      Consolidated Statement of Cash Flows (Unaudited) 
 
                                                                                   (Dollars in millions) 
 
                                                                                                               Three Months Ended                            Nine Months Ended 
 
                                                                                                                 September 30,                                 September 30, 
 
                                                                                                           2016                   2015                   2016                      2015 
 
Cash flows from operating activities: 
 
    Net income                                                                                           $    1,248            $    1,276                 $      3,801         $      3,644 
 
    Less: Net income attributable to the noncontrolling interest                                                  8                    12                           26                   70 
 
    Net income attributable to Honeywell                                                                      1,240                 1,264                        3,775                3,574 
 
    Adjustments to reconcile net income attributable to Honeywell to net 
 
    cash provided by operating activities: 
 
        Depreciation                                                                                            182                   168                          546                  503 
 
        Amortization                                                                                             78                    51                          227                  158 
 
        Gain on sale of non-strategic businesses and assets                                                   (176)                   (1)                        (176)                  (1) 
 
        Repositioning and other charges                                                                         302                   133                          567                  393 
 
        Net payments for repositioning and other charges                                                      (154)                 (114)                        (420)                (329) 
 
        Pension and other postretirement income                                                               (153)                  (86)                        (471)                (269) 
 
        Pension and other postretirement benefit payments                                                      (29)                  (36)                        (110)                 (84) 
 
        Stock compensation expense                                                                               49                    41                          145                  132 
 
        Deferred income taxes                                                                                  (36)                   158                          146                  284 
 
        Excess tax benefits from share based payment arrangements                                                 -                  (13)                            -                 (69) 
 
        Other                                                                                                   (8)                    14                         (33)                  151 
 
        Changes in assets and liabilities, net of the effects of 
 
        acquisitions and divestitures: 
 
           Accounts, notes and other receivables                                                               (57)                   302                        (570)                   52 
 
           Inventories                                                                                         (21)                     5                        (233)                 (20) 
 
           Other current assets                                                                                  60                  (73)                           78                (111) 
 
           Accounts payable                                                                                    (18)                    11                         (18)                 (13) 
 
           Accrued liabilities                                                                                  295                 (131)                            3                (795) 
 
Net cash provided by operating activities                                                                     1,554                 1,693                        3,456                3,556 
 
Cash flows from investing activities: 
 
    Expenditures for property, plant and equipment                                                            (274)                 (277)                        (749)                (685) 
 
    Proceeds from disposals of property, plant and equipment                                                      3                     -                            4                    3 
 
    Increase in investments                                                                                 (1,262)               (1,835)                      (3,083)              (5,701) 
 
    Decrease in investments                                                                                     873                 1,991                        2,658                4,050 
 
    Cash paid for acquisitions, net of cash acquired                                                        (1,484)                     -                      (2,568)                (185) 
 
    Proceeds from sales of businesses, net of fees paid                                                         304                     1                          304                    3 
 
    Other                                                                                                       106                    81                          158                 (69) 
 
Net cash used for investing activities                                                                      (1,734)                  (39)                      (3,276)              (2,584) 
 
Cash flows from financing activities: 
 
    Net increase (decrease) in commercial paper and other short-term borrowings                               1,799                   882                        (425)                2,011 
 
    Proceeds from issuance of common stock                                                                      143                    25                          386                  150 
 
    Proceeds from issuance of long-term debt                                                                     37                    34                        4,510                   48 
 
    Payments of long-term debt                                                                                  (8)                  (91)                        (478)                (148) 
 
    Excess tax benefits from share based payment arrangements                                                     -                    13                            -                   69 
 
    Repurchases of common stock                                                                               (233)               (1,235)                      (1,866)              (1,721) 
 
    Cash dividends paid                                                                                       (453)                 (410)                      (1,410)              (1,261) 
 
    Payments to purchase the noncontrolling interest                                                              -                     -                        (238)                    - 
 
    AdvanSix pre-separation funding                                                                             269                     -                          269                    - 
 
    AdvanSix pre-spin borrowing                                                                                  38                     -                           38                    - 
 
    AdvanSix cash at spin-off                                                                                  (38)                     -                         (38)                    - 
 
    Other                                                                                                      (25)                  (27)                         (40)                 (61) 
 
Net cash provided by (used for) financing activities                                                          1,529                 (809)                          708                (913) 
 
Effect of foreign exchange rate changes on cash and cash equivalents                                             37                 (236)                           88                (455) 
 
Net increase (decrease) in cash and cash equivalents                                                          1,386                   609                          976                (396) 
 
Cash and cash equivalents at beginning of period                                                              5,045                 5,954                        5,455                6,959 
 
Cash and cash equivalents at end of period                                                               $    6,431            $    6,563                 $      6,431         $      6,563 
 
 
                                                                         Honeywell International Inc 
 
                                                  Reconciliation of Cash Provided by Operating Activities to Free Cash Flow 
                                                                                 (Unaudited) 
 
                                                                            (Dollars in millions) 
 
                                                                                              Three Months Ended                                         Twelve Months Ended 
 
                                                                                                September 30,                                               December 31, 
 
                                                                                        2016                     2015                                     2015 
 
Cash provided by operating activities                                           $               1,554    $               1,693                $                          5,519 
 
Expenditures for property, plant and equipment                                                  (274)                    (277)                                         (1,073) 
 
Free cash flow                                                                  $               1,280    $               1,416                $                          4,446 
 
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 
 
                                                                                        September 30, 
 
                                                                            2016                             2015 
 
Segment Profit                                                           $               1,720            $              1,852 
 
Stock compensation expense (A)                                                            (49)                            (41) 
 
Repositioning and other (A, B)                                                           (290)                           (142) 
 
Pension ongoing income (A)                                                                 146                              96 
 
Other postretirement income (expense) (A)                                                    7                            (10) 
 
Operating Income                                                         $               1,534            $              1,755 
 
Segment Profit                                                           $               1,720            $              1,852 
 
÷ Sales                                                                  $               9,804            $              9,611 
 
Segment Profit Margin %                                                     17.5%                           19.3% 
 
Operating Income                                                         $               1,534            $              1,755 
 
÷ Sales                                                                  $               9,804            $              9,611 
 
Operating Income Margin %                                                   15.6%                           18.3% 
 
(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 
 
                                              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, 
 
                                                                                                                                   2015 
 
Segment Profit                                                                                              $              7,256 
 
Stock compensation expense (A)                                                                                             (175) 
 
Repositioning and other (A, B)                                                                                             (576) 
 
Pension ongoing income (A)                                                                                                   430 
 
Pension mark-to-market adjustment (A)                                                                                       (67) 
 
Other postretirement expense (A)                                                                                            (40) 
 
Operating Income                                                                                            $              6,828 
 
Pension mark-to-market adjustment (A)                                                                                       (67) 
 
Operating Income excluding pension mark-to-market adjustment                                                $              6,895 
 
Segment Profit                                                                                              $              7,256 
 
÷ Sales                                                                                                      $            38,581 
 
Segment Profit Margin %                                                                                            18.8% 
 
Operating Income                                                                                            $              6,828 
 
÷ Sales                                                                                                      $            38,581 
 
Operating Income Margin %                                                                                          17.7% 
 
Operating Income excluding pension mark-to-market adjustment                                                $              6,895 
 
÷ Sales                                                                                                      $            38,581 
 
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 Earnings Per Share to Earnings Per Share, Excluding Pension 
                                               Mark-to-Market Adjustment and Debt Refinancing Expenses (Unaudited) 
 
                                                                                Three Months Ended                                Twelve Months Ended 
 
                                                                                   December 31,                                            December 31, 
 
                                                                                     2015 (1)                                                2015 (2) 
 
Earnings per share of common stock - assuming dilution                   $                           1.53                        $                           6.04 
 
Pension mark-to-market adjustment                                                                    0.05                                                    0.06 
 
Debt refinancing expenses                                                                               -                                                       - 
 
Earnings per share of common stock - assuming dilution, 
 
excluding pension mark-to-market and debt refinancing expenses           $                           1.58                        $                           6.10 
 
(1) Utilizes weighted average shares of 780.8 million.  Mark-to-market uses a 
blended tax rate of 36.1% 
 
(2) Utilizes weighted average shares of 789.3 million.  Mark-to-market uses a 
blended tax rate of 36.1% 
 
We believe earnings per share, excluding pension mark-to-market and debt 
refinancing expenses, 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 
 
        Calculation of SBG Segment Profit Margin Excluding Mergers and Acquisitions 
                                        (Unaudited) 
 
                                   (Dollars in millions) 
 
                                                                     Three Months Ended 
 
                                                                       September 30, 
 
                                                                            2016 
 
Aerospace 
 
Segment Profit excluding mergers and acquisitions                $                      658 
 
÷ Sales excluding mergers and acquisitions                        $                   3,559 
 
Segment Profit Margin excluding mergers and acquisitions %                 18.5% 
 
Home and Building Technologies 
 
Segment Profit excluding mergers and acquisitions                $                      416 
 
÷ Sales excluding mergers and acquisitions                        $                   2,384 
 
Segment Profit Margin excluding mergers and acquisitions %                 17.4% 
 
Performance Materials and Technologies 
 
Segment Profit excluding mergers and acquisitions                $                      473 
 
÷ Sales excluding mergers and acquisitions                        $                   2,195 
 
Segment Profit Margin excluding mergers and acquisitions %                 21.5% 
 
Safety and Productivity Solutions 
 
Segment Profit excluding mergers and acquisitions                $                      166 
 
÷ Sales excluding mergers and acquisitions                        $                   1,092 
 
Segment Profit Margin excluding mergers and acquisitions %                 15.2% 
 
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 Core Organic Sales Growth (Unaudited) 
 
                                                                          Three Months Ended 
 
                                                                            September 30, 
 
                                                                                2016 
 
Honeywell 
 
Reported sales growth                                                            2% 
 
Less: Foreign currency translation, acquisitions, divestitures and other         5% 
 
Less: Raw materials pricing in R&C                                                - 
 
Core organic sales growth                                                       (3%) 
 
PMT 
 
Reported sales growth                                                            2% 
 
Less: Foreign currency translation, acquisitions, divestitures and other         5% 
 
Less: Raw materials pricing in R&C                                                - 
 
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. 
 
 
 
 
END 
 

(END) Dow Jones Newswires

October 21, 2016 06:53 ET (10:53 GMT)

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