ADVFN Logo

We could not find any results for:
Make sure your spelling is correct or try broadening your search.

Trending Now

Toplists

It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Hot Features

Registration Strip Icon for alerts Register for real-time alerts, custom portfolio, and market movers

HON Honeywell International Incorporated

159.07
0.00 (0.00%)
Last Updated: 00:00:00
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 00:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Honeywell Intl 3rd Quarter Results

22/10/2021 11:30am

UK Regulatory


 
TIDMHON 
 
Honeywell Delivers 9% Sales Growth And Expands Operating Margin By 180 Basis 
                                    Points 
 
- Earnings Per Share of $1.80, Adjusted Earnings Per Share(1) of $2.02, at High 
End of Guidance 
 
- Organic Sales up 8%; Second Straight Quarter of Sales Growth in All Four 
Segments 
 
- Operating Margin up 180 Basis Points to 18.6%; Segment Margin up 130 Basis 
Points to 21.2% 
 
- Deployed $1.5 Billion in Capital to Share Repurchases, Dividends, Capital 
Expenditures, and Acquisitions 
 
- Orders up High Single Digits, up Double Digits Ex-COVID Mask Demand; Backlog 
up 7% to $27.5 Billion 
 
CHARLOTTE, N.C., Oct. 22, 2021 /PRNewswire/ -- Honeywell (NASDAQ: HON) today 
announced outstanding results for the third quarter that met or exceeded the 
company's guidance. 
 
"The third quarter was another strong one for Honeywell, with sales growth in 
all four segments, significant margin expansion, and exceptional execution even 
as we faced tough challenges in the supply chain environment," said Darius 
Adamczyk, chairman and chief executive officer of Honeywell. "Organic sales 
grew 8%, led by 38% growth in Aerospace commercial aftermarket, 21% growth in 
Safety and Productivity Solutions, and 29% growth in UOP and 14% growth in 
advanced materials within Performance Materials and Technologies. Our focus on 
operational and commercial excellence enabled us to expand segment margin by 
130 basis points to 21.2%, exceeding the high end of our guidance range by 60 
basis points. As a result, we delivered adjusted earnings per share1 of $2.02, 
up 29% year over year, achieving the high end of our third-quarter guidance 
range. Our cash performance was strong, and we remain on track to meet our cash 
flow commitments for the year. We continued to execute on our capital 
deployment strategy, repurchasing $0.7 billion in shares, announcing our 12th 
dividend increase in the past 11 years, and completing the acquisition of 
Performix Inc. to expand our portfolio of automation solutions for the life 
sciences industry." 
 
Adamczyk continued, "Our disciplined approach to productivity and pricing 
helped deliver a strong third quarter despite an uncertain global environment 
marked by supply chain constraints, increasing raw material inflation, and 
labor market challenges. We continue to focus on mitigating these challenges in 
the fourth quarter, while capitalizing on near-term growth opportunities across 
our portfolio." 
 
Honeywell updated its full-year guidance to reflect the persistent effects of 
the macro-challenged environment as well as the third-quarter results. 
Full-year sales are now expected to be in the range of $34.2 billion to $34.6 
billion with organic sales growth in the range of 4% to 5% due to supply chain 
constraints. Segment margin is expected to be in the range of 20.9% to 21.1%. 
Adjusted earnings per share2 is expected to be $8.00 to $8.10. Operating cash 
flow is still expected to be in the range of $5.9 billion to $6.2 billion and 
free cash flow is still expected to be in the range of $5.3 billion to $5.6 
billion. A summary of the company's full-year guidance changes can be found in 
Table 1. 
 
Third-Quarter Performance 
Honeywell sales for the third quarter were up 9% on a reported basis and up 8% 
on an organic basis. The third-quarter financial results can be found in Tables 
2 and 3. 
 
Aerospace sales for the third quarter were up 2% on an organic basis driven by 
an ongoing recovery in commercial aftermarket demand as flight hours continued 
to increase as well as by strong growth in business and general aviation 
original equipment, partially offset by lower defense volumes, which were 
impacted by supply chain constraints. Commercial aftermarket sales were up 38% 
year over year and air transport aftermarket sales were up double digits 
sequentially from the second quarter, demonstrating momentum in the aftermarket 
recovery. Segment margin expanded 390 basis points to 27.1% driven by 
commercial excellence, favorable sales mix, and productivity net of inflation. 
 
Honeywell Building Technologies sales for the third quarter were up 3% on an 
organic basis driven by strength across the building products portfolio and 
continued growth in building solutions services. Orders were up double digits 
year over year, driven by strong demand for building projects and products. The 
services backlog was up over 35% driven by strong global bookings, positioning 
the business for continued growth. Segment margin expanded 190 basis points to 
23.5% driven by commercial excellence and productivity, partially offset by 
inflation. 
 
Performance Materials and Technologies sales for the third quarter were up 9% 
on an organic basis driven by demand for process solutions services and thermal 
solutions, petrochemical catalyst shipments and equipment volumes in UOP, and 
continued double-digit growth in advanced materials driven by strong demand 
across the portfolio. Robust demand for services, automation projects, gas 
processing, and advanced materials drove double-digit orders growth year over 
year for the second consecutive quarter. Segment margin expanded 260 basis 
points to 22.2% driven by commercial excellence and productivity, partially 
offset by inflation. 
 
Safety and Productivity Solutions sales for the third quarter were up 21% on an 
organic basis driven by another quarter of double-digit growth in the warehouse 
and workflow solutions, productivity solutions and services, and gas analysis 
businesses, partially offset by lower personal protective equipment volumes. 
Orders were up double digits year over year driven by over 50% orders growth in 
warehouse and workflow solutions, productivity solutions and services, and 
advanced sensing, which should drive continued growth. Segment margin 
contracted 70 basis points to 13.2% driven by unfavorable business mix and 
Intelligrated supply chain challenges, partially offset by commercial 
excellence. 
 
Conference Call Details 
Honeywell will discuss its third-quarter results and updated full-year guidance 
during an investor conference call starting at 8:30 a.m. Eastern Daylight Time 
today. To participate on the conference call, please dial (301) 715-8592 
approximately 10 minutes before the 8:30 a.m. EDT start. The meeting ID is 996 
7173 6928. The access code is 528460. A 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). A 
replay of the webcast will be available for 30 days following the presentation. 
 
TABLE 1: FULL-YEAR 2021 GUIDANCE5 
 
                              Previous Guidance Current Guidance 
 
Sales                          $34.6B - $35.2B  $34.2B - $34.6B 
 
Organic Growth                     4% - 6%          4% - 5% 
 
Segment Margin                  20.8% - 21.1%    20.9% - 21.1% 
 
Expansion                      Up 40 - 70 bps    Up 50 - 70 bps 
 
Adjusted Earnings Per Share2    $7.95 - $8.10    $8.00 - $8.10 
 
    Adjusted Earnings Growth3     12% - 14%        13% - 14% 
 
Operating Cash Flow             $5.9B - $6.2B    $5.9B - $6.2B 
 
Free Cash Flow                  $5.3B - $5.6B    $5.3B - $5.6B 
 
TABLE 2: SUMMARY OF HONEYWELL FINANCIAL RESULTS 
 
                                     3Q 2021  3Q 2020  Change 
 
Sales                                 8,473    7,797     9% 
 
Organic Growth                                           8% 
 
Segment Margin                        21.2%    19.9%   130 bps 
 
Operating Income Margin               18.6%    16.8%   180 bps 
 
Earnings Per Share                    $1.80    $1.07     68% 
 
Adjusted Earnings Per Share1          $2.02    $1.56     29% 
 
Cash Flow from Operations             1,119    1,007     11% 
 
Operating Cash Flow Conversion         89%     133%     (44%) 
 
Free Cash Flow                         911      758      20% 
 
Adjusted Free Cash Flow Conversion4    64%      68%     (4%) 
 
TABLE 3: SUMMARY OF SEGMENT FINANCIAL RESULTS 
 
AEROSPACE                                         3Q 2021    3Q 2020    Change 
 
Sales                                              2,732      2,662       3% 
 
Organic Growth                                                            2% 
 
Segment Profit                                      740        617        20% 
 
Segment Margin                                     27.1%      23.2%     390 bps 
 
HONEYWELL BUILDING TECHNOLOGIES 
 
Sales                                              1,370      1,305       5% 
 
Organic Growth                                                            3% 
 
Segment Profit                                      322        282        14% 
 
Segment Margin                                     23.5%      21.6%     190 bps 
 
PERFORMANCE MATERIALS AND TECHNOLOGIES 
 
Sales                                              2,510      2,252       11% 
 
Organic Growth                                                            9% 
 
Segment Profit                                      558        442        26% 
 
Segment Margin                                     22.2%      19.6%     260 bps 
 
SAFETY AND PRODUCTIVITY SOLUTIONS 
 
Sales                                              1,861      1,578       18% 
 
Organic Growth                                                            21% 
 
Segment Profit                                      245        219        12% 
 
Segment Margin                                     13.2%      13.9%     -70 bps 
 
1Adjusted EPS and adjusted EPS V% exclude changes in fair value for Garrett 
Motion Inc. (Garrett) equity securities, an expense related to UOP 
matters, gain on the sale of the retail footwear business, and 3Q20 non-cash 
charges associated with the reduction in value of reimbursement 
receivables due from Garrett. 
 
2Adjusted EPS guidance excludes an expense related to UOP matters, gain on the 
sale of the retail footwear business, non-cash charges 
associated with a further reduction in value of reimbursement receivables 
following Garrett's emergence from bankruptcy on April 30, 2021, and 
any potential future one-time items that we cannot reliably predict or estimate 
such as pension 
mark-to-market and changes in fair value for Garrett equity securities. 
 
3Adjusted EPS V% guidance excludes an expense related to UOP matters, gain on 
the sale of the retail footwear business, non-cash charges 
associated with a further reduction in value of reimbursement receivables 
following Garrett's emergence from bankruptcy on April 30, 2021, 4Q20 
pension mark-to-market, 2Q20 favorable resolution of a foreign tax matter 
related to the spin-off transactions, non-cash charges associated with 
the 2020 reduction in value of reimbursement receivables due from Garrett, net 
of proceeds from the settlement of related hedging transactions, 
and any potential future one-time items that we cannot reliably predict or 
estimate such as pension mark-to-market or changes in fair value for 
Garrett equity securities. 
 
4Adjusted free cash flow conversion is free cash flow (cash flow from 
operations less capital expenditures plus cash receipts from Garrett) divided 
by adjusted net income attributable to Honeywell. Adjusted net income 
attributable to Honeywell excludes 3Q20 non-cash charges associated with 
the reduction in value of reimbursement receivables due from Garrett, changes 
in fair value for Garrett equity securities, an expense related to 
UOP matters, and gain on the sale of the retail footwear business. 
 
5As discussed in the notes to the attached reconciliations, we do not provide 
guidance for margin or EPS on a GAAP basis. 
 
Honeywell (http://www.honeywell.com/) is a Fortune 100 technology company that 
delivers industry specific solutions that include aerospace products and 
services; control technologies for buildings and industry; and performance 
materials globally. Our technologies help everything from aircraft, buildings, 
manufacturing plants, supply chains, and workers become more connected to make 
our world smarter, safer, and more sustainable. For more news and information 
on Honeywell, please visit www.honeywell.com/newsroom. 
 
Honeywell uses our Investor Relations website, www.honeywell.com/investor, as a 
means of disclosing information which may be of interest or material to our 
investors and for complying with disclosure obligations under Regulation FD. 
Accordingly, investors should monitor our Investor Relations website, in 
addition to following our press releases, SEC filings, public conference calls, 
webcasts, and social media. 
 
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, technological, and COVID-19 public health 
factors affecting our operations, markets, products, services and prices. Such 
forward-looking statements are not guarantees of future performance, and actual 
results, and other developments, including the potential impact of the COVID-19 
pandemic, and business decisions may differ from those envisaged by such 
forward-looking statements. Any forward-looking plans described herein are not 
final and may be modified or abandoned at any time. 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. 
 
This release contains financial measures presented on a non-GAAP basis. 
Honeywell's non-GAAP financial measures used in this release are as follows: 
segment profit, on an overall Honeywell basis, a measure by which we assess 
operating performance, which we define as operating income adjusted for certain 
items as presented in the Appendix; segment margin, on an overall Honeywell 
basis, which we define as segment profit divided by sales; organic sales 
growth, which we define as sales growth less the impacts from foreign currency 
translation and acquisitions and divestitures for the first 12 months following 
the transaction date; free cash flow, which we define as cash flow from 
operations less capital expenditures plus cash receipts from Garrett, if and as 
noted in the release; adjusted free cash flow conversion, which we define as 
free cash flow divided by adjusted net income attributable to Honeywell; 
adjusted net income attributable to Honeywell, which we define as net income 
attributable to Honeywell which we adjust to exclude changes in fair value for 
Garrett equity securities, an expense related to UOP matters, gain on the sale 
of the retail footwear business, and the 3Q20 non-cash charges associated with 
the reduction in value of reimbursement receivables due from Garrett, if and as 
noted in the release; and adjusted earnings per share, which we adjust to 
exclude pension mark-to-market, changes in fair value for Garrett equity 
securities, an expense related to UOP matters, gain on the sale of the retail 
footwear business, the non-cash charges associated with the reduction in value 
of reimbursement receivables due from Garrett, net of proceeds from settlement 
of related hedging transactions, the favorable resolution of a foreign tax 
matter related to the spin-off transactions, and a non-cash charge associated 
with a further reduction in value of reimbursement receivables following 
Garrett's emergence from bankruptcy on April 30, 2021, if and as noted in the 
release. Management believes that, when considered together with reported 
amounts, these measures are useful to investors and management in understanding 
our ongoing operations and in the analysis of ongoing operating trends. These 
metrics should be considered in addition to, and not as replacements for, the 
most comparable GAAP measure. Certain metrics presented on a non-GAAP basis 
represent the impact of adjusting items net of tax. The tax-effect for 
adjusting items is determined individually and on a case-by-case basis. Refer 
to the Appendix attached to this release for reconciliations of non-GAAP 
financial measures to the most directly comparable GAAP measures. 
 
Contacts: 
 
Media                     Investor Relations 
 
Nina Krauss               Reena Vaidya 
 
(704) 627-6035            (704) 627-6200 
 
nina.krauss@honeywell.com reena.vaidya@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, 
 
                           2021            2020           2021          2020 
 
Product sales        $          6,233   $   5,885       $    19,281   $ 17,933 
 
Service sales                   2,240       1,912             6,454      5,804 
 
Net sales                       8,473       7,797            25,735     23,737 
 
Costs, expenses and 
other 
 
Cost of products                4,463       4,315            13,748     12,852 
sold(1) 
 
Cost of services                1,283       1,068             3,710      3,341 
sold(1) 
 
                                5,746       5,383            17,458     16,193 
 
Selling, general and            1,152       1,103             3,595      3,524 
administrative 
expenses(1) 
 
Other (income)                  (215)          62           (1,023)      (546) 
expense 
 
Interest and other                 90         101               263        264 
financial charges 
 
                                6,773       6,649            20,293     19,435 
 
Income before taxes             1,700       1,148             5,442      4,302 
 
Tax expense                       427         367             1,274        816 
(benefit) 
 
Net income                      1,273         781             4,168      3,486 
 
Less: Net income                   16          23                54         66 
attributable to the 
noncontrolling 
interest 
 
Net income           $          1,257   $     758       $     4,114   $  3,420 
attributable to 
Honeywell 
 
Earnings per share   $           1.82   $    1.08       $      5.93   $   4.85 
of common stock - 
basic 
 
Earnings per share   $           1.80   $    1.07       $      5.86   $   4.81 
of common stock - 
assuming dilution 
 
Weighted average                690.6       702.6             693.6      704.8 
number of shares 
outstanding - basic 
 
Weighted average                698.9       709.6             702.0      711.6 
number of shares 
outstanding - 
assuming dilution 
 
(1)       Cost of products and services sold and Selling, general 
          and administrative expenses include amounts for 
          repositioning and other charges, the service cost 
          component of 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                                 2021      2020      2021        2020 
 
Aerospace                               $ 2,732   $ 2,662   $  8,130    $  8,566 
 
Honeywell Building Technologies           1,370     1,305      4,135       3,763 
 
Performance Materials and Technologies    2,510     2,252      7,408       6,867 
 
Safety and Productivity Solutions         1,861     1,578      6,062       4,541 
 
Total                                   $ 8,473   $ 7,797   $ 25,735    $ 23,737 
 
 
 
 
             Reconciliation of Segment Profit to Income Before Taxes 
 
                            Three Months Ended                Nine Months Ended 
                              September 30,                     September 30, 
 
Segment Profit         2021                   2020             2021      2020 
 
Aerospace       $               740    $               617   $ 2,212    $ 2,082 
 
Honeywell                       322                    282       942        794 
Building 
Technologies 
 
Performance                     558                    442     1,522      1,373 
Materials and 
Technologies 
 
Safety and                      245                    219       840        610 
Productivity 
Solutions 
 
Corporate                      (72)                    (7)     (155)       (73) 
 
Total segment                 1,793                  1,553     5,361      4,786 
profit 
 
Interest and                   (90)                  (101)     (263)      (264) 
other 
financial 
charges 
 
Stock                          (56)                   (40)     (172)      (118) 
compensation 
expense (1) 
 
Pension                         261                    197       809        593 
ongoing income 
(2) 
 
Other                            18                     13        53         40 
postretirement 
income (2) 
 
Repositioning                  (96)                  (144)     (338)      (486) 
and other 
charges (3,4) 
 
Other (5)                     (130)                  (330)       (8)      (249) 
 
Income before   $             1,700    $             1,148   $ 5,442    $ 4,302 
taxes 
 
(1)            Amounts included in Selling, general and administrative 
               expenses. 
 
(2)            Amounts included in Cost of products and services sold 
               and Selling, general and administrative expenses 
               (service costs) and Other income (expense) (non-service 
               cost components). 
 
(3)            Amounts included in Cost of products and services sold, 
               Selling, general and administrative expenses, and 
               Other (income) expense. 
 
(4)            Includes repositioning, asbestos, and environmental 
               expenses. 
 
(5)            Amounts include the other components of Other (income) 
               expense not included within other categories in this 
               reconciliation. Equity income of affiliated companies is 
               included in segment profit. 
 
 
 
 
                         Honeywell International Inc. 
 
                    Consolidated Balance Sheet (Unaudited) 
 
                             (Dollars in millions) 
 
                                                 September 30,   December 31, 
                                                 2021            2020 
 
ASSETS 
 
Current assets: 
 
Cash and cash equivalents                        $      11,087   $      14,275 
 
Short-term investments                                   1,049             945 
 
Accounts receivable - net                                7,239           6,827 
 
Inventories                                              4,967           4,489 
 
Other current assets                                     1,691           1,639 
 
Total current assets                                    26,033          28,175 
 
Investments and long-term receivables                    1,243             685 
 
Property, plant and equipment - net                      5,514           5,570 
 
Goodwill                                                16,963          16,058 
 
Other intangible assets - net                            3,637           3,560 
 
Insurance recoveries for asbestos related                  330             366 
liabilities 
 
Deferred income taxes                                      760             760 
 
Other assets                                             9,711           9,412 
 
Total assets                                     $      64,191   $      64,586 
 
LIABILITIES 
 
Current liabilities: 
 
Accounts payable                                 $       6,116   $       5,750 
 
Commercial paper and other short-term borrowings         3,559           3,597 
 
Current maturities of long-term debt                     3,344           2,445 
 
Accrued liabilities                                      7,188           7,405 
 
Total current liabilities                               20,207          19,197 
 
Long-term debt                                          14,346          16,342 
 
Deferred income taxes                                    2,372           2,113 
 
Postretirement benefit obligations other than              225             242 
pensions 
 
Asbestos-related liabilities                             1,765           1,920 
 
Other liabilities                                        7,155           6,975 
 
Redeemable noncontrolling interest                           7               7 
 
Shareowners' equity                                     18,114          17,790 
 
Total liabilities, redeemable noncontrolling     $      64,191   $      64,586 
interest and shareowners' 
equity 
 
 
 
                          Honeywell International Inc. 
 
                Consolidated Statement of Cash Flows (Unaudited) 
 
                             (Dollars in millions) 
 
                                      Three Months Ended    Nine Months Ended 
                                        September 30,         September 30, 
 
                                       2021       2020       2021       2020 
 
Cash flows from operating 
activities: 
 
Net income                           $  1,273   $    781   $  4,168   $  3,486 
 
Less: Net income attributable to the       16         23         54         66 
noncontrolling interest 
 
Net income attributable to Honeywell    1,257        758      4,114      3,420 
 
Adjustments to reconcile net income 
attributable to Honeywell to net 
cash provided by 
operating activities: 
 
Depreciation                              171        166        506        480 
 
Amortization                              137         89        427        268 
 
Gain on sale of non-strategic             (5)          -       (95)          - 
businesses and assets 
 
Repositioning and other charges            96        144        338        486 
 
Net payments for repositioning and      (147)      (343)      (505)      (652) 
other charges 
 
Pension and other postretirement        (279)      (210)      (862)      (633) 
income 
 
Pension and other postretirement          (2)       (14)       (29)       (37) 
benefit payments 
 
Stock compensation expense                 56         40        172        118 
 
Deferred income taxes                      88       (12)        189      (289) 
 
Reimbursement receivables charge            -        350          -        350 
 
Other                                     171       (84)      (106)      (369) 
 
Changes in assets and liabilities, 
net of the effects of acquisitions 
and divestitures: 
 
Accounts receivable                     (292)      (161)      (419)        615 
 
Inventories                             (245)         47      (516)      (284) 
 
Other current assets                    (226)        140      (324)        246 
 
Accounts payable                         (23)       (96)        379      (460) 
 
Accrued liabilities                       362        193        106        167 
 
Net cash provided by operating          1,119      1,007      3,375      3,426 
activities 
 
Cash flows from investing 
activities: 
 
Expenditures for property, plant and    (208)      (249)      (614)      (615) 
equipment 
 
Proceeds from disposals of property,        4         10         18         17 
plant and equipment 
 
Increase in investments                 (592)      (700)    (1,989)    (2,371) 
 
Decrease in investments                   575      1,045      1,906      2,634 
 
Receipts from Garrett Motion Inc.           -          -        375          - 
 
Receipts (payments) from settlements      111      (158)         88       (75) 
of derivative contracts 
 
Cash paid for acquisitions, net of        (7)          -    (1,334)          - 
cash acquired 
 
Proceeds from sales of businesses,         13          -        203          - 
net of fees paid 
 
Net cash used for investing             (104)       (52)    (1,347)      (410) 
activities 
 
Cash flows from financing 
activities: 
 
Proceeds from issuance of commercial    1,282      1,412      3,640      8,577 
paper and other short-term 
borrowings 
 
Payments of commercial paper and      (1,282)    (1,418)    (3,637)    (8,512) 
other short-term borrowings 
 
Proceeds from issuance of common           57         66        171        163 
stock 
 
Proceeds from issuance of long-term     2,482      3,004      2,509     10,105 
debt 
 
Payments of long-term debt            (2,520)    (3,019)    (3,355)    (4,237) 
 
Repurchases of common stock             (650)      (164)    (2,499)    (2,149) 
 
Cash dividends paid                     (646)      (636)    (1,950)    (1,921) 
 
Other                                    (41)       (14)       (74)       (54) 
 
Net cash provided by (used for)       (1,318)      (769)    (5,195)      1,972 
financing activities 
 
Effect of foreign exchange rate          (37)         72       (21)       (19) 
changes on cash and cash equivalents 
 
Net increase (decrease) in cash and     (340)        258    (3,188)      4,969 
cash equivalents 
 
Cash and cash equivalents at           11,427     13,778     14,275      9,067 
beginning of period 
 
Cash and cash equivalents at end of  $ 11,087   $ 14,036   $ 11,087   $ 14,036 
period 
 
 
 
 
                   Honeywell International Inc. 
 
       Reconciliation of Organic Sales % Change (Unaudited) 
 
                                                Three Months Ended 
                                                September 30, 2021 
 
Honeywell 
 
Reported sales % change                                 9% 
 
Less: Foreign currency translation                      1% 
 
Less: Acquisitions, divestitures and other, net         -% 
 
Organic sales % change                                  8% 
 
Aerospace 
 
Reported sales % change                                 3% 
 
Less: Foreign currency translation                      -% 
 
Less: Acquisitions, divestitures and other, net         1% 
 
Organic sales % change                                  2% 
 
Honeywell Building Technologies 
 
Reported sales % change                                 5% 
 
Less: Foreign currency translation                      2% 
 
Less: Acquisitions, divestitures and other, net         -% 
 
Organic sales % change                                  3% 
 
Performance Materials and Technologies 
 
Reported sales % change                                11% 
 
Less: Foreign currency translation                      1% 
 
Less: Acquisitions, divestitures and other, net         1% 
 
Organic sales % change                                  9% 
 
Safety and Productivity Solutions 
 
Reported sales % change                                18% 
 
Less: Foreign currency translation                      1% 
 
Less: Acquisitions, divestitures and other, net        (4)% 
 
Organic sales % change                                 21% 
 
We define organic sales percent as the year over year change in reported sales 
relative to the comparable period, excluding the impact on sales from foreign 
currency translation and acquisitions, net of divestitures, for the first 12 
months following the transaction date. We believe this measure is useful to 
investors and management in understanding our ongoing operations and in 
analysis of ongoing operating trends. 
 
A quantitative reconciliation of reported sales percent change to organic sales 
percent change has not been provided for forward-looking measures of organic 
sales percent change because management cannot reliably predict or estimate, 
without unreasonable effort, the fluctuations in global currency markets that 
impact foreign currency translation, nor is it reasonable for management to 
predict the timing, occurrence and impact of acquisition and divestiture 
transactions, all of which could significantly impact our reported sales 
percent change. 
 
                         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         Twelve 
                                             30,                     Months 
                                                                      Ended 
                                                                  December 31, 
 
                                     2021            2020             2020 
 
Segment profit                    $  1,793         $ 1,553         $    6,665 
 
Stock compensation expense (1)        (56)            (40)              (168) 
 
Repositioning, Other (2,3)           (117)           (161)              (641) 
 
Pension and other postretirement      (45)            (41)              (160) 
service costs (4) 
 
Operating income                  $  1,575         $ 1,311         $    5,696 
 
Segment profit                    $  1,793         $ 1,553         $    6,665 
 
÷ Net sales                       $  8,473         $ 7,797         $   32,637 
 
Segment profit margin %               21.2 %          19.9 %             20.4 % 
 
Operating income                  $  1,575         $ 1,311         $    5,696 
 
÷ Net sales                       $  8,473         $ 7,797         $   32,637 
 
Operating income margin %             18.6 %          16.8 %             17.5 % 
 
(1)                              Included in Selling, general and 
                                 administrative expenses. 
 
(2)                              Includes repositioning, asbestos, 
                                 environmental expenses, and equity income 
                                 adjustment. 
 
(3)                              Included in Cost of products and services 
                                 sold, Selling, general and administrative 
                                 expenses and Other (income) 
                                 expense. 
 
(4)                              Included in Cost of products and services 
                                 sold and Selling, general and administrative 
                                 expenses. 
 
 
We define segment profit as operating income, excluding stock compensation 
expense, pension and other postretirement service costs, and repositioning and 
other charges. We believe these measures are useful to investors and management 
in understanding our ongoing operations and in analysis of ongoing operating 
trends. 
 
A quantitative reconciliation of segment profit, on an overall Honeywell basis, 
to operating income has not been provided for all forward-looking measures of 
segment profit and segment margin included herewithin. Management cannot 
reliably predict or estimate, without unreasonable effort, the impact and 
timing on future operating results arising from items excluded from segment 
profit. The information that is unavailable to provide a quantitative 
reconciliation could have a significant impact on our reported financial 
results. To the extent quantitative information becomes available without 
unreasonable effort in the future, and closer to the period to which the 
forward-looking measures pertain, a reconciliation of segment profit to 
operating income will be included within future filings. 
 
                         Honeywell International Inc. 
 
Reconciliation of Earnings per Share to Adjusted Earnings per Share (Unaudited) 
 
                             Three Months Ended                   Twelve Months 
                                September 30,                         Ended 
                                                                  December 31, 
 
                             2021           2020                      2020 
 
Earnings per share of     $      1.80    $     1.07               $      6.72 
common stock - assuming 
dilution (1) 
 
Pension mark-to-market              -             -                      0.04 
expense (2) 
 
Separation related tax              -             -                    (0.26) 
adjustment (3) 
 
Changes in fair value               -             -                         - 
for Garrett equity 
securities (4) 
 
Garrett-related                     -          0.49                      0.60 
adjustments (5) 
 
Gain on sale of retail         (0.01)             -                         - 
footwear business (6) 
 
Expense related to UOP           0.23             -                         - 
Matters (7) 
 
Adjusted earnings per     $      2.02    $     1.56               $      7.10 
share of common stock - 
assuming dilution 
 
(1)                      For the three months ended September 30, 2021 and 
                         2020, adjusted earnings per share utilizes weighted 
                         average shares of approximately 698.9 million and 
                         709.6 million. For the twelve months ended December 
                         31, 2020, adjusted earnings per share utilizes 
                         weighted average shares of 711.2 million. 
 
(2)                      Pension mark-to-market expense uses a blended tax 
                         rate of 25% for 2020. 
 
(3)                      For the twelve months ended December 31, 2020, 
                         separation related tax adjustment of $186 million, 
                         net of tax, includes the favorable resolution of a 
                         foreign tax matter related to the spin-off 
                         transactions. 
 
(4)                      For the three months ended September 30, 2021, the 
                         adjustment was $2 million net of tax due to changes 
                         in fair value for Garrett equity securities. 
 
(5)                      For the three months ended September 30, 2020, the 
                         adjustment was $350 million net of tax due to the 
                         non-cash charges associated with the reduction in 
                         value of reimbursement receivables due from Garrett. 
                         For the twelve months ended December 31, 2020, the 
                         adjustment was $427 million net of tax due to the 
                         non-cash charges associated with the reduction in 
                         value of reimbursement receivables due from Garrett, 
                         net of proceeds from settlement of related hedging 
                         transactions. 
 
(6)                      For the three months ended September 30, 2021, the 
                         adjustment was $4 million net of tax due to the gain 
                         on sale of the retail footwear business. 
 
(7)                      For the three months ended September 30, 2021, the 
                         adjustment was $160 million with no tax benefit due 
                         to an expense related to UOP matters. 
                         We continue to cooperate with investigations by the 
                         U.S. Department of Justice (DOJ), the Securities and 
                         Exchange Commission (SEC) and the Brazilian 
                         authorities relating to our use of third parties who 
                         previously worked for our UOP business in Brazil in 
                         relation to Petróleo Brasileiro S.A. (Petrobras) in 
                         connection with a project awarded in 2010. The 
                         investigations focus on compliance with the U.S. 
                         Foreign Corrupt Practices Act and similar Brazilian 
                         laws (the UOP Matters), and involve, among other 
                         things, document production and interviews with 
                         former and current management and employees. The DOJ 
                         and the SEC are also examining a matter involving a 
                         foreign subsidiary's prior contract with Unaoil 
                         S.A.M. in Algeria executed in 2011. We continue to be 
                         engaged in discussions with the authorities with 
                         respect to a potential comprehensive resolution of 
                         these matters. 
                         As the discussions are both ongoing and at different 
                         stages with regards to each respective authority, 
                         there can be no assurance as to whether we will reach 
                         a resolution with such authorities or as to the 
                         potential timing, terms, or collateral consequences 
                         of any such resolution. As a result, we cannot 
                         predict the ultimate outcome of these UOP Matters or 
                         the potential impact on the Company. Based on 
                         available information to date, we estimate that a 
                         potential comprehensive resolution of these UOP 
                         Matters would result in a probable loss of at least 
                         $160 million, and we have recorded a charge in this 
                         amount in our Consolidated Statement of Operations, 
                         and have accrued a corresponding liability on the 
                         Consolidated Balance Sheet. 
 
 
 
 
                         Honeywell International Inc. 
 
  Reconciliation of Cash Provided by Operating Activities to Free Cash Flow, 
                         Reconciliation of Net Income 
Attributable to Honeywell to Adjusted Net Income Attributable to Honeywell, and 
                       Calculation of Adjusted Free Cash 
                          Flow Conversion (Unaudited) 
 
                             (Dollars in millions) 
 
                                                                 Three Months 
                                          Three Months               Ended 
                                             Ended               September 30, 
                                         September 30,               2020 
                                              2021 
 
Cash provided by operating activities    $  1,119                $ 1,007 
 
Expenditures for property, plant and        (208)                  (249) 
equipment 
 
Garrett cash receipts                           -                      - 
 
Free cash flow                                911                    758 
 
Net income attributable to Honeywell        1,257                    758 
 
Changes in fair value for Garrett equity        2                      - 
securities (1) 
 
Garrett related adjustment (2)                  -                    350 
 
Gain on sale of retail footwear business      (4)                      - 
(3) 
 
Expense related to UOP Matters (4)            160                      - 
 
Adjusted net income attributable to      $  1,415                $ 1,108 
Honeywell 
 
Cash provided by operating activities    $  1,119                $ 1,007 
 
÷ Net income (loss) attributable to      $  1,257                $   758 
Honeywell 
 
Operating cash flow conversion %               89 %                      % 
                                                                     133 
 
Free cash flow                           $    911                $   758 
 
÷ Adjusted net income attributable to    $  1,415                $ 1,108 
Honeywell 
 
Adjusted free cash flow conversion %           64 %                      % 
                                                                      68 
 
(1)                                      The adjustment due to changes in 
                                         fair value for Garrett equity 
                                         securities. 
 
(2)                                      For the three months ended September 
                                         30, 2020, the adjustment was $350 
                                         million net of tax due to the 
                                         noncash charge associated with the 
                                         reduction in value of reimbursement 
                                         receivables due from Garrett. 
 
(3)                                      The adjustment due to an after-tax 
                                         gain on sale of the retail footwear 
                                         business. 
 
(4)                                      The adjustment due to an expense 
                                         related to UOP matters. 
 
 
We define free cash flow as cash provided by operating activities less cash 
expenditures for property, plant and equipment plus cash receipts from Garrett. 
 
We believe that free cash flow is a non-GAAP metric that is useful to investors 
and management as a measure of cash generated by 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, 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 
operations and the impact that this cash flow has on our liquidity. For forward 
looking information, we do not provide cash flow conversion guidance on a GAAP 
basis as management cannot reliably predict or estimate, without unreasonable 
effort, the pension mark-to-market expense and the changes in fair value for 
Garrett equity securities. Pension mark-to-market is dependent on macroeconomic 
factors, such as interest rates and the return generated on invested pension 
plan assets. Based on economic and industry conditions, future developments and 
other relevant factors, these assumptions are subject to change. Changes in 
fair value of Garrett equity securities cannot be forecasted due to the 
inherent nature of changing conditions in the overall market. 
 
                         Honeywell International Inc. 
 
   Reconciliation of Cash Provided by Operating Activities to Free Cash Flow 
                                  (Unaudited) 
 
                                                                Twelve Months 
                                                                    Ended 
                                                                December 31, 
                                                                2021(E) ($B) 
 
Cash provided by operating activities                              $5.9 - $6.2 
 
Expenditures for property, plant and equipment                             (1) 
 
Garrett cash receipts                                                       0.4 
 
Free cash flow                                                     $5.3 - $5.6 
 
We define free cash flow as cash provided by operating activities less cash 
expenditures for property, plant and equipment plus cash receipts from Garrett. 
 
We believe that free cash flow is a non-GAAP metric that is useful to investors 
and management as a measure of cash generated by 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, 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 
operations and the impact that this cash flow has on our liquidity. For forward 
looking information, we do not provide cash flow conversion guidance on a GAAP 
basis as management cannot reliably predict or estimate, without unreasonable 
effort, the pension mark-to-market expense or changes in fair value of Garrett 
equity securities. Pension mark-to-market is dependent on macroeconomic 
factors, such as interest rates and the return generated on invested pension 
plan assets. Based on economic and industry conditions, future developments and 
other relevant factors, these assumptions are subject to change. Changes in 
fair value of Garrett equity securities cannot be forecasted due to the 
inherent nature of changing conditions in the overall market. 
 
                         Honeywell International Inc. 
 
 Reconciliation of Expected Earnings per Share to Adjusted Earnings per Share 
                                  (Unaudited) 
 
                                                             Twelve Months 
                                                                 Ended 
                                                             December 31, 
                                                                2021(E) 
 
 
Earnings per share of common stock -                              $7.87 - $7.97 
assuming dilution (1) 
 
Gain on sale of retail footwear business (2)                             (0.11) 
 
Garrett-related adjustments (3)                                            0.01 
 
Expense related to UOP Matters (4)                                         0.23 
 
Adjusted earnings per share of common stock                       $8.00 - $8.10 
- assuming dilution 
 
(1)                                          For the twelve months ended 
                                             December 31, 2021, expected 
                                             earnings per share utilizes 
                                             weighted average 
                                             shares of approximately 701 
                                             million. 
 
(2)                                          For the twelve months ended 
                                             December 31, 2021, the adjustment 
                                             was $76 million net of tax due to 
                                             the gain 
                                             on sale of the retail footwear 
                                             business. 
 
(3)                                          For the twelve months ended 
                                             December 31, 2021, adjustment was 
                                             $7 million net of tax due to a 
                                             non-cash 
                                             charge associated with a further 
                                             reduction in value of 
                                             reimbursement receivables 
                                             following Garrett's 
                                             emergence from bankruptcy on April 
                                             30, 2021. 
 
(4)                                          For the twelve months ended 
                                             December 31, 2021, adjustment was 
                                             $160 million with no tax benefit 
                                             due to an 
                                             expense related to UOP matters. 
 
We believe adjusted earnings per share is a measure that is useful to investors 
and management in understanding our ongoing operations and in analysis of 
ongoing operating trends. For forward looking information, management cannot 
reliably predict or estimate any potential future one-time items, such as 
pension mark-to-market or changes in fair value for Garrett equity securities, 
without unreasonable effort. Pension mark-to-market expense is dependent on 
macroeconomic factors, such as interest rates and the return generated on 
invested pension plan assets. Based on economic and industry conditions, future 
developments and other relevant factors, these assumptions are subject to 
change. Changes in fair value for Garrett equity securities cannot be 
forecasted due to the inherent nature of changing conditions in the overall 
market. 
 
 
 
END 
 
 

(END) Dow Jones Newswires

October 22, 2021 06:30 ET (10:30 GMT)

1 Year Honeywell Chart

1 Year Honeywell Chart

1 Month Honeywell Chart

1 Month Honeywell Chart

Your Recent History

Delayed Upgrade Clock