The company reported full-year 2011 results including:
• 2011 sales of $36.5 billion, up approximately 13% over 2010
   – 8% organic sales growth, again reflecting strong end markets, successful new product launches, and continued expansion in high growth regions
• 2011 proforma earnings (excluding the impact of pension mark-to-market adjustments)  of $4.05 per share, up 35% over $3.00 in 2010; Reported EPS of $2.61 in 2011 versus $2.59 in the prior year
   – Pension mark-to-market adjustment of $1.44 per share calculated using 791.6 million weighted average shares outstanding assuming dilution
• 2011 cash flow from operations of $2.8 billion, includes $1.7 billion cash pension contribution in the year
   – 2011 free cash flow of approximately $3.7 billion, prior to $1.7 billion cash pension contribution

“Honeywell had a terrific 2011,” said Honeywell Chairman and CEO Dave Cote. “We executed across the portfolio with record organic sales growth and segment margins. Our 2011 performance reflects the operational and financial disciplines that underpin the transformation that has taken place at the company over the last 10 years. We deployed the Honeywell 5 Initiatives – Growth, Productivity, Cash, People, and our Enablers, and created a common One Honeywell culture committed to continuous improvement. As a result, we built a better set of businesses with Great Positions in Good Industries, a terrific performance track record, a great leadership team with a truly global focus, a very full pipeline of new products and technologies, and our key process initiatives that are gaining momentum. We’ve come a long way, and we feel even better about our future.”

“While we expect a more challenging macro environment ahead in 2012, primarily driven by softness in Europe impacting the short-cycle businesses, we’re confident that Honeywell is well positioned to continue to outperform,” continued Cote.  “Our long-cycle businesses are accelerating, with Commercial Aerospace OE, UOP, Building Solutions & Distribution, and Process Solutions all having substantial backlog, in total just under $16 billion. While we expect growth to moderate in the first half of 2012, we’re confident that we can drive strong sales conversion leading to higher segment margins over the course of the year.  The investments we’ve made, coupled with our execution track record and disciplined playbook, will be key to our continued outperformance in 2012 and beyond.”

For more information, read the press release or listen to a replay of the Investor Conference Call.

Honeywell Turbo Technologies (HTT), the global leader in automotive turbocharger development, showcased an industry first turbocharger application for micro diesel engines as well as its expanded portfolio of turbochargers featuring global technologies not previously offered in India at the 11th Auto Expo 2012.

HTT developed a turbo application with optimized aerodynamics for micro 2-cylinder diesel engines below 1.0L. This application is currently being deployed in India on 0.8L engines. Honeywell also featured other industry innovations such as its variable geometry VNT turbos including its third generation VNT combined with a rotary electric actuator – the first time this combination has been available in India.         

Within the light vehicle segment, turbo penetration in India has grown from 27 percent in 2010 to 31 percent in 2011. It is expected to reach more than 40 percent penetration by 2016. This rapid growth in India is consistent with global penetration growth estimates as manufacturers use turbocharging as an enabler for engine downsizing. A downsized turbocharged engine allows manufacturers to meet higher fuel economy standards and reduced emissions and yet maintain the power and performance of the larger naturally-aspirated engine it replaces.

For more information, read the press release.

UOP LLC, a Honeywell company, announced that it has been selected by Samsung Total Petrochemicals Co., Ltd. to provide technologies for the production of key petrochemicals and high-quality diesel and jet fuel at its complex in Daesan, South Korea.

The integrated aromatics complex will be the first to employ the latest energy-efficient designs from UOP, allowing Samsung to reduce energy consumption by 33 percent and offering significant savings in greenhouse gas emissions compared with earlier designs. 

The facility will use several integrated UOP technologies to produce 1 million metric tons of para-xylene and 500,000 metric tons of benzene per year. Para-xylene and benzene are key aromatics used in the production of synthetic fibers and resins. According to WorldPET, a consultant for the global para-xylene industry, the demand for para-xylene in Northeast Asia is expected to increase by 80 percent over the next five years.

UOP was also selected by South Korea’s Kumho P&B Chemicals, Inc. to provide technology to produce key petrochemicals for the manufacture of plastics.  UOP Q-Max™ and UOP Phenol™ process technologies will be integrated at Kumho’s Yeosu, South Korea, facility to produce high-quality phenol. Honeywell’s UOP will provide engineering design, technology licensing, catalysts, adsorbents, and technical service for the project.

According to industry consultants, the demand for materials produced using these petrochemicals is forecasted to grow in Asia by as much as nine percent annually over the next five years, driven by demand for automobiles, appliances, and electronics.

For more information, read the press release on the Samsung Total Petrochemicals Co., Ltd. project and the press release on the Kumho P&B Chemicals facility.

Aldous Wong, HBS Vice President & General Manager, North Asia, shakes hands with Ai Yamin, Deputy Director of TEDA at the signing ceremony.

Honeywell signed an agreement with the Tianjin Economic-Technological Development Area (TEDA) to implement China’s first Smart Grid Demand Response project.  State Grid Electric Power Research Institute selected Honeywell to develop the project in February. The signing also represents the official launch of the Demand Response System Pilot jointly sponsored by the Chinese and United States governments through the U.S.-China Energy Cooperation Program (ECP), which aims to develop a nationwide set of smart grid industry standards and regulations in China.

Under the Honeywell-TEDA agreement, Honeywell will conduct a demonstration project using its automated demand response (Auto DR) technology at select facilities within the TEDA development area, including office buildings, government and commercial facilities, and industrial plants.

As the world’s largest energy user, China seeks to develop a “smarter” electrical grid to better manage the country’s growing demand for energy and improve the reliability and efficiency of the nation’s utility infrastructure.  Honeywell’s smart grid technology and expertise connects the utility and its customers so they can automatically adjust energy consumption to reduce demands on the energy grid.

For more information, read the press release.

Honeywell acquired Fire Sentry Corporation, a privately-held manufacturer of innovative fire detection and control products for a broad range of industrial markets. The terms of the transaction were not disclosed.

Based in Yorba Linda, California, Fire Sentry’s product portfolio consists of fast-responding electro-optical flame detectors, portable test lamps, and dedicated control panels that are used by customers in industrial settings such as petrochemical, semiconductor, paint booth/finishing, automobile airbags, and munitions plants. Fire Sentry’s products are designed to ensure rapid, accurate, and reliable detection of both hydrocarbon and non-hydrocarbon fires within a single device.

The acquisition will help Honeywell significantly expand its gas and flame detection, and monitoring solutions and builds on the company’s acquisitions of System Sensor in 1984 and Zellweger Analytics in 2005 among other important acquisitions in the gas detection arena. The company will be integrated into Honeywell Life Safety and will extend significant synergies in distribution channels, vertical end-markets, and global end-users.

For more information, read the press release.

Pictured left to right: Shane Tedjarati, President, High Growth Regions, and  Stephen Shang, President, Honeywell China

Honeywell announced that Shane Tedjarati was named to the broader role of President, High Growth Regions, and Stephen Shang will take over as President, Honeywell China, effective immediately. Tedjarati will continue to report directly to Honeywell Chairman and CEO Dave Cote. Shang will report to Tedjarati.

“Globalization has been a key pillar of our Growth Initiative for the past decade,” said Dave Cote, Honeywell Chairman and CEO.  “Ten years ago, less than 40% of our sales were generated outside the U.S.  Today, our company is twice the size, and approximately 55% of our revenues are generated outside the U.S.  We began executing this strategy by focusing on the two most important emerging markets – China and India.  That strategy has proven to be a good one.  We have grown nearly ten-fold in revenues and now have nearly 25,000 employees in China and India, representing a significant share of our global growth story.” 

For biographical and additional information, read the press release.

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

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

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

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

Honeywell announced its 2012 financial outlook including:

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

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

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

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

For more information, listen to a replay of the Investor Conference call.

Honeywell Hometown Solutions (HHS), the company’s corporate citizenship initiative, recently unveiled the Honeywell Initiative for Science & Engineering (HISE), a new global science education program aimed to inspire future scientists and engineers. 

The program which launched its first events at Beihang University (BUAA) in Beijing, China and CETYS Universidad in Mexicali, Mexico aims to bridge the gap between formal academic study and practical business applications by providing students with direct access to Honeywell technology leaders and Nobel Laureates in physics and chemistry.  The program also provides paid internship opportunities to outstanding students.

At the event at CETYS Universidad, more than 1,400 guests, including 800 students, heard from Dr. John Lewis Hall, the 2005 Nobel Prize winner in physics. And in Beijing, a renowned researcher in atomic and molecular physics and 1997 Nobel laureate, Professor Claude Cohen-Tannoudji, delivered a lecture on Laser Manipulation of Atoms that underlined the importance of fundamental scientific research.

Dr.  Hall and Professor Cohen-Tannoudji also spoke to students about the impact their careers in science, technology, engineering, and math can make on communities and global corporations.  Along with the university students, guests included teachers, government and business representatives, and Honeywell employees from the Mexicali and Beijing regions.

HISE is part of HHS which focuses on five issues of vital importance: Family Safety & Security; Housing & Shelter; Science & Math Education; Habitat & Conservation; and Humanitarian Relief. Together with leading public and non-profit institutions, Honeywell has developed powerful programs to address these needs in the communities it serves. 

For more information, visit the HHS website.

Honeywell has named Briand Greer President of Aerospace Asia Pacific. Greer is based in Shanghai and will report to Tim Mahoney, President and CEO of Honeywell Aerospace. Greer succeeds Mark Howes, who will be returning to Phoenix, Arizona, to continue a role within the Aerospace Leadership Team.

As president of Honeywell Aerospace in Asia Pacific, Greer will oversee direct Honeywell operations across six countries and broader field operations across a network of 14 countries in the region. 
 
“Briand has more than 20 years of experience in the aerospace industry,” said Mahoney. “Briand’s deep understanding of our technologies and capabilities, combined with his track record of growing our Aerospace business globally, will be critical to strengthening our position in Asia Pacific and help advance China’s aviation industry.”

Greer was most recently Vice President of China Growth at Honeywell Aerospace, in which he was responsible for all strategic growth initiatives with the Aviation Industry Corporation of China (AVIC) and other entities across the region. Previously, Greer has held positions with Honeywell as Vice President of Global Sales and Business Development for the Defense & Space business unit and as Vice President of Airline Sales, where he was responsible for global airline sales, business development strategies and execution.  Greer has traveled and done business in Asia for the past 15 years and has led aerospace business development in China for the last seven years.

For more information, read the press release.