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| 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 |
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Honeywell Reports Second Quarter 2016 Sales Of $10.0 Billion, Up 2%; Earnings
Up 10% To $1.66 Per Share; Announces Split Of Automation And Control Solutions
Business Group
- Sales Up 2% Due to Acquisitions; Core Organic Sales Down 2%*
- Segment Margin Improvement of 10 bps; 110 bps Operational Improvement
- Announced $1.5B Intelligrated Acquisition, R&C Spin-Off, and Repurchased
$0.5 Billion of Shares
- Raising Low-End of 2016 EPS Guidance Range (Ex-Pension MTM) to $6.60 - $6.70,
Up 8% - 10%
- Two New Reporting Segments - Home And Building Technologies, Safety And
Productivity Solutions - Provide Greater Customer and Growth Focus
MORRIS PLAINS, New Jersey, July 22, 2016 -- Honeywell (NYSE: HON) today
announced its results for the second quarter of 2016:
Total Honeywell
($ Millions, Except Earnings Per Share) 2Q 2015 2Q 2016 Change
Sales 9,775 9,991 2%
Segment Margin 18.4% 18.5% 10 bps
Operating Income Margin 17.6% 18.4% 80 bps
Earnings Per Share $1.51 $1.66 10%
Cash Flow from Operations 1,408 1,544 10%
Free Cash Flow (1) 1,165 1,263 8%
(1) 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.
"Honeywell grew earnings 10% in the second quarter, capping off a strong first
half of 2016," said Honeywell Chairman and CEO Dave Cote. "Sales in the quarter
of $10.0B were in-line with our expectations driven by contributions from each
of our business groups. In Aerospace, we saw continued momentum in Commercial
Aviation Aftermarket and Transportation Systems. ACS had strong growth in
Security and Fire, Buildings Solutions and Distribution, and its China
business. And, PMT saw higher sales in Process Solutions and Fluorine Products,
where we continue to outperform."
"In the second quarter, we also continued to smartly deploy capital to position
our businesses for sustainable growth, to add to our Great Positions in Good
Industries, and to drive shareowner value. Earlier this month, we announced the
acquisition of Intelligrated, a leader in supply chain and warehouse automation
technologies, for $1.5 billion. This business complements our suite of
transportation and logistics technologies with warehouse execution software and
other technologies enabling superior efficiency in warehouse and distribution
operations. We also repurchased approximately $500 million of shares during the
quarter, bringing our year-to-date total to $1.6 billion, and funded $97
million in new restructuring projects."
"As a result of our first half performance, we are raising the low-end of our
full-year earnings guidance range to $6.60-$6.70, up 8%-10%. We will continue
to support growth, focusing on winning in High Growth Regions, advancing our
superior software capabilities, and effectively using HOS Gold to drive
breakthrough initiatives and deliver high-quality products to our customers
globally," continued Cote.
The company is updating its full-year 2016 guidance and now expects:
2016 Full-Year Guidance
Prior Guidance Revised Guidance Change vs. 2015
Sales $40.3 - $40.9B $40.0 - $40.6B 4% - 5%
Core Organic Growth 1% - 2% 1%
Segment Margin 18.9% - 19.3% 18.9% - 19.3% 10 - 50 bps (2)
Operating Income Margin (Ex-Pension MTM) 18.0% - 18.4% 18.0% - 18.4% 10 - 50 bps (3)
Earnings Per Share (Ex-Pension MTM) $6.55 - $6.70 $6.60 - $6.70 8% - 10%
Free Cash Flow (1) $4.6 - $4.8B $4.6 - $4.8B 5% - 10%
1. Cash Flow from Operations Less Capital Expenditures
2. Segment Margin ex-M&A Up 80 - 110 bps
3. Operating Margin ex-M&A Up 80 - 110 bps
Automation and Control Solutions Realignment
Honeywell also announced today that it is realigning its ACS business segment
into two new segments: Home and Building Technologies (HBT) and Safety and
Productivity Solutions (SPS). Financial performance for the third quarter of
2016 will be reported based on this realignment. For 2015, HBT and SPS would
have had estimated revenues of approximately $9.4 billion and $4.7 billion,
respectively.
"ACS is coming off a strong quarter and has established momentum in key
software-driven markets where our products and services give us a competitive
advantage, especially given our recent acquisitions such as Elster, Xtralis,
Intelligrated, and Movilizer," said Cote. "We have removed layers from our
organizational structure and are well-positioned to implement a more focused
segment reporting alignment that fits our HOS Gold approach to drive
breakthrough strategies and speed up new product introduction. This new
structure will also help us better serve our customers. Our success through
acquisition and NPI has resulted in a much broader portfolio that has outgrown
the existing ACS construct. Having two more nimble segments will promote
greater customer intimacy and responsiveness. The separation into two
businesses will also enable increased efficiency and speed of decision-making
as well as a more comprehensive integrated suite of technologies for the
respective end markets."
HBT benefits from Honeywell's advanced software and connectivity capability
combined with an installed base of products and technologies in more than 150
million homes and 10 million buildings worldwide that help homeowners stay
connected and in control of home comfort, security, fire systems, and air and
water purification, and that help building owners and occupants ensure their
facilities are safe, comfortable, and sustainable. It will include Honeywell's
Environmental & Energy Solutions (E&ES), Security and Fire, and Building
Solutions and Distribution businesses. E&ES' Industrial Combustion and Thermal
business will be reclassified to Honeywell Performance Materials and
Technologies (PMT). HBT will be led by Terrence Hahn, who previously ran
Honeywell's Transportation Systems unit for the past three years, launching
more than 100 new engine programs per annum and overseeing the divestiture of
Friction Materials. Prior to that, Hahn led the Fluorine Products business
within PMT, where he established the Solstice® product line, and prior to his
employment with Honeywell, held several senior leadership positions within Air
Products and Chemicals Inc. He earned bachelor's and master's degrees in
materials science from Lehigh University and an M.B.A. from The Wharton School
of the University of Pennsylvania.
SPS technologies support the productivity and safety of more than half a
billion workers worldwide with offerings such as rugged mobile computers,
voice-enabled software and workflows, bar-code scanners, printing solutions,
gas sensing technologies, and personal protective equipment. It will include
Honeywell's Sensing & Productivity Solutions and Industrial Safety business
units, as well as the Intelligrated acquisition after it closes. SPS will be
led by John Waldron, who has served for the past year as president of the
Sensing and Productivity Solutions business unit that had been formed by the
combination of Honeywell's Scanning and Mobility (HSM) and Sensing and Controls
businesses. Previously, Waldron led the HSM business and served as chief
marketing officer while leading the marketing integration of several acquired
businesses within the SPS portfolio, including Hand Held Products, Metrologic
Instruments, and EMS Technologies. Waldron earned a bachelor's degree in
electrical engineering from the University of Dayton and an M.B.A. from the
University of Notre Dame.
Succeeding Hahn as president and CEO of Transportation Systems will be Olivier
Rabiller, who has held positions of increasing responsibility since joining
Honeywell in 2002. For the past two years, he has managed the Transportation
Systems businesses in China, India, and Brazil as part of his responsibilities
for generating growth in the fastest-growing geographies around the world. His
responsibilities have also included the global aftermarket; business
development; mergers, acquisitions and divestitures; and licensing. He was
previously vice president and general manager of the Aftermarket business
within Transportation Systems. Prior to Honeywell, Rabiller served seven years
at Renault in Customer Service, Engine Project Management, and Purchasing. He
holds an engineering degree from Ecole Centrale Nantes and an M.B.A. from
INSEAD.
"Our new business group leaders demonstrate the depth and talent of our
leadership bench, and they will drive continued outperformance in their
respective businesses," said Cote.
Alex Ismail, who served as president and CEO of Automation and Control
Solutions for the past two years, will leave the company. "I would like to
thank Alex for a long and successful career at Honeywell, during which he led
several different significant business units over many years," concluded Cote.
"Alex was instrumental in building our Turbo business into a global technology
powerhouse, with rapid growth in all regions and world-leading technologies
that have greatly benefited from their proximity to our Aerospace business. He
then moved to Automation and Control Solutions, where he delivered strong
operating margin expansion and improved operational excellence; completed
several acquisitions in new strategic adjacencies such as smart meters;
accelerated growth in High Growth Regions, and built a strong pipeline of new
products, Internet of Things (IoT) solutions, and software for home, building,
and worker applications. Alex is a well-liked and respected leader, and we wish
him the best in his next endeavor."
This realignment has no impact on Honeywell's historical consolidated financial
position, results of operations or cash flows.
Additional commentary on the second quarter 2016 results by business segment
are provided below.
Segment Performance
Aerospace
($ Millions) 2Q 2015 2Q 2016 % Change
Sales 3,827 3,779 (1%)
Segment Profit 777 791 2%
Segment Margin 20.3% 20.9% 60 bps
* Sales for the second quarter were down (1%) reported and down (2%) on a
core organic basis. The decrease in core organic sales was primarily driven
by program delays and completions in the international, U.S., and services
businesses within Defense & Space (D&S), lower shipments to Business and
General Aviation (BGA) OEMs, and higher OEM incentives. This was partially
offset by higher spares sales, higher repair and overhaul activities, and
new turbo platform launches on passenger vehicles in Transportation
Systems. The difference between reported and core organic sales was due to
the favorable impact from acquisitions.
* Segment profit was up 2% and segment margin expanded 60 bps to 20.9%,
driven by productivity net of inflation, and commercial excellence,
partially offset by continued investments for growth including higher OEM
incentives, and acquisition amortization and integration costs. Excluding
the impact of acquisitions, segment margin expanded 80 bps.
Automation and Control Solutions
($ Millions) 2Q 2015 2Q 2016 % Change
Sales 3,553 3,886 9%
Segment Profit 567 615 8%
Segment Margin 16.0% 15.8% (20) bps
* Sales for the second quarter were up 9% reported. Core organic sales were
down 1% in the quarter as a result of lower volume in Sensing &
Productivity Solutions (S&PS) due to the USPS roll-out in the second
quarter of 2015 partially offset by continued global growth in Security and
Fire, strength in our Americas Distribution business, and further
penetration of High Growth Regions. 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 contracted (20) bps to 15.8%,
primarily driven by acquisition amortization and integration costs.
Excluding the impact of acquisitions, segment margin expanded 50 bps driven
by productivity, net of inflation, the benefits of previous restructuring
actions, and commercial excellence, partially offset by continued
investments for growth.
Performance Materials and Technologies
($ Millions) 2Q 2015 2Q 2016 % Change
Sales 2,395 2,326 (3%)
Segment Profit 509 490 (4%)
Segment Margin 21.3% 21.1% (20) bps
* Sales for the second quarter were down (3%) reported. Core organic sales
were down (4%) primarily driven by lower UOP gas processing, licensing, and
equipment sales and lower market pricing in Resins & Chemicals, partially
offset by higher projects, software, and services sales in Process
Solutions (HPS) and stronger volume in Fluorine Products. 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 lower raw materials pass-through pricing in Resins &
Chemicals.
* Segment profit was down (4%) and segment margins contracted (20) bps to
21.1%, driven by lower volume and continued investments for growth,
partially offset by the benefits of previous restructuring actions 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) 879-6207 (domestic) or (719) 325-4942 (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 second quarter 2016 earnings call or provide the
conference code HON2Q16. 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, July
22, until 12:30 p.m. EDT, July 29, by dialing (888) 203-1112 (domestic) or
(719) 457-0820 (international). The access code is 6704637.
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 Six Months Ended
June 30, June 30,
2016 2015 2016 2015
Product sales $ 8,035 $ 7,798 $ 15,654 $ 15,162
Service sales 1,956 1,977 3,859 3,826
Net sales 9,991 9,775 19,513 18,988
Costs, expenses
and other
Cost of 5,602 5,541 10,951 10,754
products sold
(A)
Cost of 1,219 1,273 2,417 2,422
services sold
(A)
6,821 6,814 13,368 13,176
Selling, 1,329 1,242 2,609 2,472
general and
administrative
expenses (A)
Other 1 (20) (17) (40)
(income)
expense
Interest 85 77 170 154
and other
financial
charges
8,236 8,113 16,130 15,762
Income before 1,755 1,662 3,383 3,226
taxes
Tax expense 465 440 897 858
Net income 1,290 1,222 2,486 2,368
Less: Net 8 28 18 58
income
attributable to
the
noncontrolling
interest
Net income $ 1,282 $ 1,194 $ 2,468 $ 2,310
attributable to
Honeywell
Earnings per $ 1.68 $ 1.52 $ 3.22 $ 2.95
share of common
stock - basic
Earnings per $ 1.66 $ 1.51 $ 3.19 $ 2.91
share of common
stock -
assuming
dilution
Weighted 763.3 783.3 765.5 783.5
average number
of shares
outstanding -
basic
Weighted 772.4 792.9 774.6 793.4
average number
of shares
outstanding -
assuming
dilution
(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 Six Months Ended
June 30, June 30,
Net Sales 2016 2015 2016 2015
Aerospace $ 3,779 $ 3,827 $ 7,484 $ 7,434
Automation and 3,886 3,553 7,563 6,817
Control
Solutions
Performance 2,326 2,395 4,466 4,737
Materials and
Technologies
Total $ 9,991 $ 9,775 $ 19,513 $ 18,988
Reconciliation of Segment Profit to Income Before Taxes
Three Months Ended Six Months Ended
June 30, June 30,
Segment Profit 2016 2015 2016 2015
Aerospace $ 791 $ 777 $ 1,589 $ 1,529
Automation and 615 567 1,145 1,083
Control
Solutions
Performance 490 509 931 1,012
Materials and
Technologies
Corporate (49) (50) (98) (100)
Total 1,847 1,803 3,567 3,524
segment profit
Other income (7) 12 5 24
(expense) (A)
Interest and (85) (77) (170) (154)
other financial
charges
Stock (43) (39) (96) (91)
compensation
expense (B)
Pension ongoing 151 103 301 203
income (B)
Other 8 (11) 17 (20)
postretirement
income
(expense) (B)
Repositioning (116) (129) (241) (260)
and other
charges (B)
Income before $ 1,755 $ 1,662 $ 3,383 $ 3,226
taxes
(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)
June 30, December 31,
2016 2015
ASSETS
Current assets:
Cash and cash equivalents $ 5,045 $ 5,455
Accounts, notes and other receivables 8,730 8,075
Inventories 4,678 4,420
Investments and other current assets 1,927 2,103
Total current assets 20,380 20,053
Investments and long-term receivables 561 517
Property, plant and equipment - net 6,086 5,789
Goodwill 16,688 15,895
Other intangible assets - net 4,557 4,577
Insurance recoveries for asbestos related 428 426
liabilities
Deferred income taxes 328 283
Other assets 2,153 1,776
Total assets $ 51,181 $ 49,316
LIABILITIES AND SHAREOWNERS' EQUITY
Current liabilities:
Accounts payable $ 5,598 $ 5,580
Commercial paper and other short-term 3,788 5,937
borrowings
Current maturities of long-term debt 618 577
Accrued liabilities 5,907 6,277
Total current liabilities 15,911 18,371
Long-term debt 9,607 5,554
Deferred income taxes 767 558
Postretirement benefit obligations other than 489 526
pensions
Asbestos related liabilities 1,259 1,251
Other liabilities 4,203 4,348
Redeemable noncontrolling interest 3 290
Shareowners' equity 18,942 18,418
Total liabilities, redeemable $ 51,181 $ 49,316
noncontrolling interest and
shareowners' equity
Honeywell International Inc
Consolidated Statement of Cash Flows (Unaudited)
(Dollars in millions)
Three Months Ended Six Months Ended
June 30, June 30,
2016 2015 2016 2015
Cash flows from operating activities:
Net income $ 1,290 $ 1,222 $ 2,486 $ 2,368
Less: Net income attributable to the noncontrolling interest 8 28 18 58
Net income attributable to Honeywell 1,282 1,194 2,468 2,310
Adjustments to reconcile net income attributable to Honeywell to net
cash provided by operating activities:
Depreciation 185 172 364 335
Amortization 75 54 149 107
Repositioning and other charges 140 129 265 260
Net payments for repositioning and other charges (132) (115) (266) (215)
Pension and other postretirement income (159) (92) (318) (183)
Pension and other postretirement benefit payments (43) (39) (81) (48)
Stock compensation expense 43 39 96 91
Deferred income taxes 134 33 182 126
Excess tax benefits from share based payment arrangements (38) (9) (68) (56)
Other (77) 205 9 103
Changes in assets and liabilities, net of the effects of
acquisitions and divestitures:
Accounts, notes and other receivables (310) (80) (513) (250)
Inventories 29 61 (212) (25)
Other current assets 77 (96) 18 (38)
Accounts payable 113 88 - (24)
Accrued liabilities 225 (136) (292) (664)
Net cash provided by operating activities 1,544 1,408 1,801 1,829
Cash flows from investing activities:
Expenditures for property, plant and equipment (281) (243) (475) (408)
Proceeds from disposals of property, plant and equipment - 2 1 3
Increase in investments (985) (2,365) (1,821) (3,866)
Decrease in investments 905 953 1,785 2,059
Cash paid for acquisitions, net of cash acquired (28) - (1,084) (185)
Proceeds from sales of businesses, net of fees paid - - - 2
Other 43 28 52 (150)
Net cash used for investing activities (346) (1,625) (1,542) (2,545)
Cash flows from financing activities:
Net increase (decrease) in commercial paper and other short-term borrowings 226 77 (2,224) 1,129
Proceeds from issuance of common stock 138 47 243 125
Proceeds from issuance of long-term debt 25 11 4,473 14
Payments of long-term debt (51) (22) (470) (57)
Excess tax benefits from share based payment arrangements 38 9 68 56
Repurchases of common stock (477) (123) (1,633) (486)
Cash dividends paid (458) (436) (957) (851)
Payments to purchase the noncontrolling interest - - (238) -
Other - - 18 -
Net cash used for financing activities (559) (437) (720) (70)
Effect of foreign exchange rate changes on cash and cash equivalents (67) 33 51 (219)
Net increase (decrease) in cash and cash equivalents 572 (621) (410) (1,005)
Cash and cash equivalents at beginning of period 4,473 6,575 5,455 6,959
Cash and cash equivalents at end of period $ 5,045 $ 5,954 $ 5,045 $ 5,954
Honeywell International Inc
Reconciliation of Cash Provided by Operating Activities to Free Cash Flow
(Unaudited)
(Dollars in millions)
Three Months Ended Twelve Months Ended
June 30, December 31,
2016 2015 2015
Cash provided by operating activities $ 1,544 $ 1,408 $ 5,454
Expenditures for property, plant and equipment (281) (243) (1,073)
Free cash flow $ 1,263 $ 1,165 $ 4,381
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 Six Months Ended
June 30, June 30,
2016 2015 2016 2015
Segment Profit $ 1,847 $ 1,803 $ 3,567 $ 3,524
Stock compensation expense (A) (43) (39) (96) (91)
Repositioning and other (A, B) (122) (137) (253) (276)
Pension ongoing income (A) 151 103 301 203
Other postretirement income (expense) (A) 8 (11) 17 (20)
Operating Income $ 1,841 $ 1,719 $ 3,536 $ 3,340
Segment Profit $ 1,847 $ 1,803 $ 3,567 $ 3,524
÷ Sales $ 9,991 $ 9,775 $ 19,513 $ 18,988
Segment Profit Margin % 18.5% 18.4% 18.3% 18.6%
Operating Income $ 1,841 $ 1,719 $ 3,536 $ 3,340
÷ Sales $ 9,991 $ 9,775 $ 19,513 $ 18,988
Operating Income Margin % 18.4% 17.6% 18.1% 17.6%
(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 SBG Segment Profit Margin Excluding Mergers and Acquisitions
(Unaudited)
(Dollars in millions)
Three Months Ended
June 30,
2016
Aerospace
Segment Profit excluding mergers and acquisitions $ 786
÷ Sales excluding mergers and acquisitions $ 3,733
Segment Profit Margin excluding mergers and acquisitions % 21.1%
Automation and Control Solutions
Segment Profit excluding mergers and acquisitions $ 577
÷ Sales excluding mergers and acquisitions $ 3,493
Segment Profit Margin excluding mergers and acquisitions % 16.5%
Performance Materials and Technologies
Segment Profit excluding mergers and acquisitions $ 476
÷ Sales excluding mergers and acquisitions $ 2,250
Segment Profit Margin excluding mergers and acquisitions % 21.2%
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 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
Unaudited
Twelve Months Ended
December 31,
2015
EPS $ 6.04
Pension mark-to-market adjustment (A) 0.06
EPS, excluding pension mark-to-market adjustment $ 6.10
(A) - Utilizes weighted average shares of 789.3 million. Mark-to-market uses a
blended tax rate of 36.1%.
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.
Honeywell International Inc
Reconciliation of Core Organic Sales Growth (Unaudited)
Three Months
Ended
June 30,
2016
Honeywell
Reported sales growth 2%
Less: Foreign currency translation, acquisitions, 4%
divestitures and other
Less: Raw materials pricing in R&C -
Core organic sales growth (2%)
PMT
Reported sales growth (3%)
Less: Foreign currency translation, acquisitions, 2%
divestitures and other
Less: Raw materials pricing in R&C (1%)
Core organic sales growth (4%)
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
July 22, 2016 06:44 ET (10:44 GMT)
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