MORRIS PLAINS, N.J.,
Oct. 21, 2016 /PRNewswire/
-- Honeywell (NYSE: HON) today announced its results
for the third quarter of 2016:
Total Honeywell
($ Millions, Except
Earnings Per Share)
|
3Q 2015
|
3Q 2016
|
Change
|
|
|
Sales
|
9,611
|
9,804
|
2%
|
|
|
Segment
Margin
|
19.3%
|
17.5%
|
(180) bps
|
|
|
Operating Income
Margin
|
18.3%
|
15.6%
|
(270) bps
|
|
|
Earnings Per
Share
|
$1.60
|
$1.60
|
Flat
|
|
|
Earnings Per Share
(Excluding $0.07 Deployed to Restructuring)
|
|
$1.67
|
4%
|
|
|
Cash Flow from
Operations
|
1,693
|
1,554
|
(8%)
|
|
|
Free Cash
Flow2
|
1,416
|
1,280
|
(10%)
|
|
|
|
|
|
__________________________
|
|
|
1
Excludes Impact From Contemplated Q4 Debt
Refinancing
|
|
|
2
Cash Flow from Operations Less Capital
Expenditures
|
|
|
|
|
|
Throughout this
press release, core organic sales growth refers to reported sales
growth less the impacts from foreign currency translation, M&A
and raw materials pass-through pricing in the Resins &
Chemicals business of PMT. The raw materials pricing impact is
excluded in instances where raw materials costs are passed through
to customers, which drives fluctuations in selling prices not tied
to volume growth. A reconciliation of core organic sales growth to
reported sales growth is provided in the attached financial
tables.
|
"The third-quarter results came in as we outlined on our
October 7 conference call. We are
well-positioned for double-digit earnings growth in the fourth
quarter, leading to 8%-9% earnings growth in 2016," said Honeywell
Chairman and CEO Dave Cote. "It was
a quarter of important changes in many areas. We split the former
Automation and Control Solutions business into two new reporting
segments; closed the acquisition of Intelligrated and sold
Honeywell Technology Solutions, Inc.; and spun off our Resins and
Chemicals business as a freestanding publicly-traded company named
AdvanSix Inc. (NYSE: ASIX). We also funded approximately
$250 million in restructuring and
other actions from a $0.07 increase
in first- and second-quarter EPS caused by an accounting
standard adoption, and the $0.14
gain related to the sale of our government services business. These
actions will drive more than $175
million of benefits in 2017 alone. We also intend in the
fourth quarter to refinance outstanding debt maturing in 2017-2019,
which will lower interest expense by approximately $60 million annually beginning in 2017."
"Combined with our ongoing productivity initiatives driven by
the Honeywell Operating System, and the strength of our underlying
portfolio, the actions we announced this quarter position Honeywell
for future outperformance," continued Cote. "Moving ahead, we are
targeting low single-digit core organic sales growth, continued
segment margin improvement, and a double-digit increase in EPS in
2017. Darius Adamczyk, Chief
Operating Officer, and Tom Szlosek,
Chief Financial Officer, will provide more details about 2017
during our annual outlook call in December."
"We are committed to creating sustainable long-term shareowner
value," concluded Cote. "We remain focused on disciplined capital
deployment, aggressive organic sales growth, seed planting for new
products and technologies, penetrating High Growth Regions, and
executing on our key process initiatives. 2017 will be an
inflection year for several core business units: growing demand for
our UOP catalysts and modular equipment, Jetwave™ and other
products and services tied to connected aircraft, further turbo
penetration, and strong sales growth from Solstice®
(HFOs), our line of low-global-warming refrigerants and blowing
agents. Revenue and earnings from the nearly $8 billion in M&A investments during the past
two years should also be a significant contributor to 2017
performance. We are confident in our position and expect to
continue to outperform."
The Company's current 2016 full-year guidance, which reflects
our October 6, 2016 announcement, is
as follows:
2016 Full-Year
Guidance
|
Current
Guidance
|
Change vs.
2015
|
Sales
|
$39.4 -
$39.6
|
2% - 3%
|
Core Organic
Growth
|
(1%)-(2%)
|
|
Segment
Margin
|
~18.1%
|
~(70)
bps3
|
Operating Income
Margin (Ex-Pension MTM)
|
~17.6%
|
~(30)
bps4
|
|
|
|
Earnings Per Share
(Ex-Pension MTM)5
|
$6.60 -
$6.64
|
8% - 9%
|
|
|
|
Free Cash
Flow6
|
$4.2 -
$4.3B
|
(2%) -
(5%)
|
|
__________________________
|
3
Segment Margin ex-M&A Down ~(10) bps
|
4
Operating Margin ex-M&A Up ~30 bps
|
5
Excludes Impact From Contemplated Q4 Debt
Refinancing
|
6
Cash Flow From Operations Less Capital
Expenditures
|
Segment Performance
Aerospace
($
Millions)
|
3Q 2015
|
3Q 2016
|
% Change
|
Sales
|
3,820
|
3,601
|
(6%)
|
Segment
Profit
|
833
|
663
|
(20%)
|
Segment
Margin
|
21.8%
|
18.4%
|
(340) bps
|
- Sales for the third quarter were down (6%) on a reported and
core organic basis. The decrease was primarily driven by the
unfavorable impact of third-quarter OEM incentives, lower volumes
in Business and General Aviation, program completions in the U.S.
Space and international Defense businesses, and continued weakness
in the commercial helicopter business. This was partially offset by
increased Air Transport OE deliveries and repair and overhaul
activities, and new turbo platform launches on passenger vehicles
in Transportation Systems.
- Segment profit was down (20%) and segment margin declined (340)
bps to 18.4%, due to higher Aerospace OEM incentives and lower
volumes in Business Jet and Defense, partially offset by
productivity net of inflation and commercial excellence.
Home and Building
Technologies
($
Millions)
|
3Q 2015
|
3Q 2016
|
% Change
|
Sales
|
2,313
|
2,701
|
17%
|
Segment
Profit
|
408
|
441
|
8%
|
Segment
Margin
|
17.6%
|
16.3%
|
(130)
bps7
|
|
__________________________
|
7
Segment Profit Down (20) bps Ex-M&A
|
- Sales for the third quarter were up 17% reported and up 5% on a
core organic basis. The increase was primarily driven by continued
strength in our Distribution and Building Solutions businesses, and
Products growth in Environmental & Energy Solutions and in
China. The difference between
reported and core organic sales was due to the favorable impact
from acquisitions, primarily Elster.
- Segment profit was up 8% and segment margin declined (130) bps
to 16.3%, driven by acquisition amortization and integration costs,
continued growth investments in salespeople and research and
development, and the unfavorable mix impact of increased sales in
Building Solutions and Distribution, partially offset by benefits
from previously-funded restructuring, higher sales volumes, and
commercial excellence.
Performance Materials and
Technologies
($
Millions)
|
3Q 2015
|
3Q
2016
|
% Change
|
Sales
|
2,279
|
2,329
|
2%
|
Segment
Profit
|
474
|
503
|
6%
|
Segment
Margin
|
20.8%
|
21.6%
|
80 bps
|
- Sales for the third quarter were up 2% reported. Core organic
sales were down (3%) primarily driven by declines in UOP gas
processing, licensing, and engineering, partially offset by strong
catalyst shipments and conversion of global mega projects in
Process Solutions. The difference between reported and core organic
sales was due to the favorable impact from acquisitions, partially
offset by the unfavorable impact of foreign currency and market
pricing headwinds in Resins & Chemicals.
- Segment profit was up 6% and segment margins expanded 80 bps to
21.6%, driven by productivity net of inflation, higher catalyst
volumes, and acquisition integration excellence, partially offset
by continued investments for growth.
Safety and Productivity
Solutions
($
Millions)
|
3Q 2015
|
3Q 2016
|
% Change
|
Sales
|
1,199
|
1,173
|
(2%)
|
Segment
Profit
|
193
|
172
|
(11%)
|
Segment
Margin
|
16.1%
|
14.7%
|
(140) bps
|
- Sales for the third quarter were down (2%) reported. Core
organic sales were down (8%) in the quarter as a result of lower
volume in Productivity Solutions associated with the USPS contract
(which was completed in the third quarter of 2015), continued
channel headwinds, and lower volumes in our Safety business. The
difference between reported and core organic sales was due to the
favorable impact from acquisitions, primarily Intelligrated.
- Segment profit was down (11%) and segment margin contracted
(140) bps to 14.7%, primarily driven by lower volumes and
acquisition amortization and integration costs, partially offset by
restructuring benefits and commercial excellence.
Honeywell will discuss its results during its investor
conference call today starting at 9:30 a.m.
EDT. To participate on the conference call, please dial
(877) 795-3635 (domestic) or (719) 325-4816 (international)
approximately ten minutes before the 9:30
a.m. EDT start. Please mention to the operator that you
are dialing in for Honeywell's third quarter 2016 earnings call or
provide the conference code HON3Q16. The live webcast of the
investor call as well as related presentation materials will be
available through the "Investor Relations" section of the company's
Website (www.honeywell.com/investor). Investors can hear a replay
of the conference call from 12:30 p.m.
EDT, October 21, until
12:30 p.m. EDT, October 28, by dialing (888) 203-1112 (domestic)
or (719) 457-0820 (international). The access code is 7056857.
Honeywell (www.honeywell.com) is a Fortune 100 diversified
technology and manufacturing leader, serving customers worldwide
with aerospace products and services; control technologies for
buildings, homes, and industry; turbochargers; and performance
materials. For more news and information on Honeywell, please visit
www.honeywell.com/newsroom.
This release contains certain statements that may be deemed
"forward-looking statements" within the meaning of Section 21E of
the Securities Exchange Act of 1934. All statements, other than
statements of historical fact, that address activities, events or
developments that we or our management intends, expects, projects,
believes or anticipates will or may occur in the future are
forward-looking statements. Such statements are based upon certain
assumptions and assessments made by our management in light of
their experience and their perception of historical trends, current
economic and industry conditions, expected future developments and
other factors they believe to be appropriate. The forward-looking
statements included in this release are also subject to a number of
material risks and uncertainties, including but not limited to
economic, competitive, governmental, and technological factors
affecting our operations, markets, products, services and prices.
Such forward-looking statements are not guarantees of future
performance, and actual results, developments and business
decisions may differ from those envisaged by such forward-looking
statements. We identify the principal risks and uncertainties that
affect our performance in our Form 10-K and other filings with the
Securities and Exchange Commission.
Contacts:
Media
|
Investor
Relations
|
Robert C.
Ferris
|
Mark
Macaluso
|
(973)
455-3388
|
(973)
455-2222
|
rob.ferris@honeywell.com
|
mark.macaluso@honeywell.com
|
Honeywell
International Inc.
|
Consolidated
Statement of Operations (Unaudited)
|
(Dollars in millions,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
Product
sales
|
$
7,744
|
|
$
7,573
|
|
$
23,398
|
|
$
22,735
|
Service
sales
|
2,060
|
|
2,038
|
|
5,919
|
|
5,864
|
Net sales
|
9,804
|
|
9,611
|
|
29,317
|
|
28,599
|
|
|
|
|
|
|
|
|
|
Costs, expenses and
other
|
|
|
|
|
|
|
|
Cost of products sold (A)
|
5,594
|
|
5,372
|
|
16,545
|
|
16,126
|
Cost of services sold (A)
|
1,309
|
|
1,282
|
|
3,726
|
|
3,704
|
|
|
6,903
|
|
6,654
|
|
20,271
|
|
19,830
|
Selling, general and administrative expenses (A)
|
1,367
|
|
1,202
|
|
3,976
|
|
3,674
|
Other (income) expense
|
(180)
|
|
(24)
|
|
(197)
|
|
(64)
|
Interest and other financial charges
|
82
|
|
72
|
|
252
|
|
226
|
|
|
8,172
|
|
7,904
|
|
24,302
|
|
23,666
|
|
|
|
|
|
|
|
|
|
Income before
taxes
|
1,632
|
|
1,707
|
|
5,015
|
|
4,933
|
Tax
expense
|
384
|
|
431
|
|
1,214
|
|
1,289
|
|
|
|
|
|
|
|
|
|
Net income
|
1,248
|
|
1,276
|
|
3,801
|
|
3,644
|
|
|
|
|
|
|
|
|
|
Less: Net income
attributable to the noncontrolling interest
|
8
|
|
12
|
|
26
|
|
70
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Honeywell
|
$
1,240
|
|
$
1,264
|
|
$
3,775
|
|
$
3,574
|
|
|
|
|
|
|
|
|
|
Earnings per share of
common stock - basic
|
$
1.62
|
|
$
1.62
|
|
$
4.93
|
|
$
4.57
|
|
|
|
|
|
|
|
|
|
Earnings per share of
common stock - assuming dilution
|
$
1.60
|
|
$
1.60
|
|
$
4.86
|
|
$
4.51
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding - basic
|
763.7
|
|
780.4
|
|
765.0
|
|
782.5
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding - assuming dilution
|
774.4
|
|
789.5
|
|
776.3
|
|
792.1
|
|
|
|
|
|
|
|
|
|
(A) Cost of products
and services sold and selling, general and administrative expenses
include amounts for repositioning and other charges, pension and
other postretirement (income) expense, and stock compensation
expense
|
Honeywell
International Inc
|
Segment Data
(Unaudited)
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
Net Sales
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
Aerospace
|
$
3,601
|
|
$
3,820
|
|
$
11,085
|
|
$
11,254
|
|
|
|
|
|
|
|
|
|
Home and Building
Technologies
|
2,701
|
|
2,313
|
|
7,854
|
|
6,686
|
|
|
|
|
|
|
|
|
|
Performance Materials
and Technologies
|
2,329
|
|
2,279
|
|
7,044
|
|
7,137
|
|
|
|
|
|
|
|
|
|
Safety and
Productivity Solutions
|
1,173
|
|
1,199
|
|
3,334
|
|
3,522
|
|
|
|
|
|
|
|
|
|
Corporate
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
Total
|
$
9,804
|
|
$
9,611
|
|
$
29,317
|
|
$
28,599
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Segment Profit to Income Before Taxes
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
Segment
Profit
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
Aerospace
|
$
663
|
|
$
833
|
|
$
2,252
|
|
$
2,362
|
|
|
|
|
|
|
|
|
|
Home and Building
Technologies
|
441
|
|
408
|
|
1,213
|
|
1,088
|
|
|
|
|
|
|
|
|
|
Performance Materials
and Technologies
|
503
|
|
474
|
|
1,484
|
|
1,517
|
|
|
|
|
|
|
|
|
|
Safety and
Productivity Solutions
|
172
|
|
193
|
|
495
|
|
565
|
|
|
|
|
|
|
|
|
|
Corporate
|
(59)
|
|
(56)
|
|
(157)
|
|
(156)
|
|
|
|
|
|
|
|
|
|
Total segment
profit
|
1,720
|
|
1,852
|
|
5,287
|
|
5,376
|
|
|
|
|
|
|
|
|
|
Other income
(expense) (A)
|
169
|
|
15
|
|
174
|
|
39
|
Interest and other
financial charges
|
(82)
|
|
(72)
|
|
(252)
|
|
(226)
|
Stock compensation
expense (B)
|
(49)
|
|
(41)
|
|
(145)
|
|
(132)
|
Pension ongoing
income (B)
|
146
|
|
96
|
|
447
|
|
299
|
Other postretirement
income (expense) (B)
|
7
|
|
(10)
|
|
24
|
|
(30)
|
Repositioning and
other charges (B)
|
(279)
|
|
(133)
|
|
(520)
|
|
(393)
|
|
|
|
|
|
|
|
|
|
Income before
taxes
|
$
1,632
|
|
$
1,707
|
|
$
5,015
|
|
$
4,933
|
|
|
|
|
|
|
|
|
|
(A)
Equity income (loss) of affiliated
companies is included in segment profit
|
(B)
Amounts included in cost of products and
services sold and selling, general and administrative
expenses
|
Honeywell
International Inc
|
Consolidated Balance
Sheet (Unaudited)
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
|
|
2016
|
|
2015
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$
6,431
|
|
$
5,455
|
Accounts, notes and other receivables
|
|
8,627
|
|
8,075
|
Inventories
|
|
4,587
|
|
4,420
|
Investments and other current assets
|
|
2,189
|
|
2,103
|
|
Total current
assets
|
|
21,834
|
|
20,053
|
|
|
|
|
|
|
Investments and
long-term receivables
|
|
639
|
|
517
|
Property, plant and
equipment - net
|
|
5,725
|
|
5,789
|
Goodwill
|
|
17,846
|
|
15,895
|
Other intangible
assets - net
|
|
4,847
|
|
4,577
|
Insurance recoveries
for asbestos related liabilities
|
|
433
|
|
426
|
Deferred income
taxes
|
|
335
|
|
283
|
Other
assets
|
|
1,897
|
|
1,776
|
|
|
|
|
|
|
|
Total assets
|
|
$
53,556
|
|
$
49,316
|
|
|
|
|
|
|
LIABILITIES AND
SHAREOWNERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable
|
|
$
5,418
|
|
$
5,580
|
Commercial paper and other short-term borrowings
|
|
5,601
|
|
5,937
|
Current maturities of long-term debt
|
|
649
|
|
577
|
Accrued liabilities
|
|
6,545
|
|
6,277
|
|
Total current
liabilities
|
|
18,213
|
|
18,371
|
|
|
|
|
|
|
Long-term
debt
|
|
9,608
|
|
5,554
|
Deferred income
taxes
|
|
701
|
|
558
|
Postretirement
benefit obligations other than pensions
|
|
477
|
|
526
|
Asbestos related
liabilities
|
|
1,278
|
|
1,251
|
Other
liabilities
|
|
3,905
|
|
4,348
|
Redeemable
noncontrolling interest
|
|
3
|
|
290
|
Shareowners'
equity
|
|
19,371
|
|
18,418
|
|
|
|
|
|
|
|
Total liabilities,
redeemable noncontrolling interest and shareowners'
equity
|
|
$
53,556
|
|
$
49,316
|
Honeywell
International Inc
|
Consolidated
Statement of Cash Flows (Unaudited)
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net income
|
|
$
1,248
|
|
$
1,276
|
|
$
3,801
|
|
$
3,644
|
Less: Net income attributable to the noncontrolling
interest
|
|
8
|
|
12
|
|
26
|
|
70
|
Net income attributable to Honeywell
|
|
1,240
|
|
1,264
|
|
3,775
|
|
3,574
|
Adjustments to reconcile net income attributable to Honeywell to
net
|
|
|
|
|
|
|
|
|
cash provided by operating activities:
|
|
|
|
|
|
|
|
|
Depreciation
|
|
182
|
|
168
|
|
546
|
|
503
|
Amortization
|
|
78
|
|
51
|
|
227
|
|
158
|
Gain on
sale of non-strategic businesses and assets
|
|
(176)
|
|
(1)
|
|
(176)
|
|
(1)
|
Repositioning and other charges
|
|
302
|
|
133
|
|
567
|
|
393
|
Net
payments for repositioning and other charges
|
|
(154)
|
|
(114)
|
|
(420)
|
|
(329)
|
Pension
and other postretirement income
|
|
(153)
|
|
(86)
|
|
(471)
|
|
(269)
|
Pension
and other postretirement benefit payments
|
|
(29)
|
|
(36)
|
|
(110)
|
|
(84)
|
Stock
compensation expense
|
|
49
|
|
41
|
|
145
|
|
132
|
Deferred
income taxes
|
|
(36)
|
|
158
|
|
146
|
|
284
|
Excess tax
benefits from share based payment arrangements
|
|
-
|
|
(13)
|
|
-
|
|
(69)
|
Other
|
|
(8)
|
|
14
|
|
(33)
|
|
151
|
Changes in
assets and liabilities, net of the effects of
|
|
|
|
|
|
|
|
|
acquisitions and divestitures:
|
|
|
|
|
|
|
|
|
Accounts, notes and other receivables
|
|
(57)
|
|
302
|
|
(570)
|
|
52
|
Inventories
|
|
(21)
|
|
5
|
|
(233)
|
|
(20)
|
Other current assets
|
|
60
|
|
(73)
|
|
78
|
|
(111)
|
Accounts payable
|
|
(18)
|
|
11
|
|
(18)
|
|
(13)
|
Accrued liabilities
|
|
295
|
|
(131)
|
|
3
|
|
(795)
|
Net cash provided by
operating activities
|
|
1,554
|
|
1,693
|
|
3,456
|
|
3,556
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Expenditures for property, plant and equipment
|
|
(274)
|
|
(277)
|
|
(749)
|
|
(685)
|
Proceeds from disposals of property, plant and equipment
|
|
3
|
|
-
|
|
4
|
|
3
|
Increase in investments
|
|
(1,262)
|
|
(1,835)
|
|
(3,083)
|
|
(5,701)
|
Decrease in investments
|
|
873
|
|
1,991
|
|
2,658
|
|
4,050
|
Cash paid for acquisitions, net of cash acquired
|
|
(1,484)
|
|
-
|
|
(2,568)
|
|
(185)
|
Proceeds from sales of businesses, net of fees paid
|
|
304
|
|
1
|
|
304
|
|
3
|
Other
|
|
106
|
|
81
|
|
158
|
|
(69)
|
Net cash used for
investing activities
|
|
(1,734)
|
|
(39)
|
|
(3,276)
|
|
(2,584)
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Net increase (decrease) in commercial paper and other short-term
borrowings
|
|
1,799
|
|
882
|
|
(425)
|
|
2,011
|
Proceeds from issuance of common stock
|
|
143
|
|
25
|
|
386
|
|
150
|
Proceeds from issuance of long-term debt
|
|
37
|
|
34
|
|
4,510
|
|
48
|
Payments of long-term debt
|
|
(8)
|
|
(91)
|
|
(478)
|
|
(148)
|
Excess tax benefits from share based payment
arrangements
|
|
-
|
|
13
|
|
-
|
|
69
|
Repurchases of common stock
|
|
(233)
|
|
(1,235)
|
|
(1,866)
|
|
(1,721)
|
Cash dividends paid
|
|
(453)
|
|
(410)
|
|
(1,410)
|
|
(1,261)
|
Payments to purchase the noncontrolling interest
|
|
-
|
|
-
|
|
(238)
|
|
-
|
AdvanSix pre-separation funding
|
|
269
|
|
-
|
|
269
|
|
-
|
AdvanSix pre-spin borrowing
|
|
38
|
|
-
|
|
38
|
|
-
|
AdvanSix cash at spin-off
|
|
(38)
|
|
-
|
|
(38)
|
|
-
|
Other
|
|
(25)
|
|
(27)
|
|
(40)
|
|
(61)
|
Net cash provided by
(used for) financing activities
|
|
1,529
|
|
(809)
|
|
708
|
|
(913)
|
|
|
|
|
|
|
|
|
|
Effect of foreign
exchange rate changes on cash and cash equivalents
|
|
37
|
|
(236)
|
|
88
|
|
(455)
|
Net increase
(decrease) in cash and cash equivalents
|
|
1,386
|
|
609
|
|
976
|
|
(396)
|
Cash and cash
equivalents at beginning of period
|
|
5,045
|
|
5,954
|
|
5,455
|
|
6,959
|
Cash and cash
equivalents at end of period
|
|
$
6,431
|
|
$
6,563
|
|
$
6,431
|
|
$
6,563
|
Honeywell
International Inc
|
|
Reconciliation of
Cash Provided by Operating Activities to Free Cash Flow
(Unaudited)
|
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
September
30,
|
|
December
31,
|
|
2016
|
|
2015
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
Cash provided by
operating activities
|
$
1,554
|
|
$
1,693
|
|
|
$
5,519
|
|
Expenditures for
property, plant and equipment
|
(274)
|
|
(277)
|
|
|
(1,073)
|
|
Free cash
flow
|
$
1,280
|
|
$
1,416
|
|
|
$
4,446
|
|
|
|
|
|
|
|
|
|
We define free cash
flow as cash provided by operating activities less cash
expenditures for property, plant and equipment.
|
|
|
|
|
|
|
|
|
|
We believe that this
metric is useful to investors and management as a measure of cash
generated by business operations that will be used to repay
scheduled debt maturities and can be used to invest in future
growth through new business development activities or acquisitions,
and to pay dividends, repurchase stock, or repay debt obligations
prior to their maturities. This metric can also be used to evaluate
our ability to generate cash flow from business operations and the
impact that this cash flow has on our liquidity.
|
|
|
|
|
Honeywell
International Inc
|
Reconciliation of
Segment Profit to Operating Income and Calculation of Segment
Profit and Operating Income Margins (Unaudited)
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
September
30,
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
Segment
Profit
|
|
$
1,720
|
|
$
1,852
|
|
|
|
|
|
|
|
Stock compensation
expense (A)
|
|
(49)
|
|
(41)
|
|
Repositioning and
other (A, B)
|
|
(290)
|
|
(142)
|
|
Pension ongoing
income (A)
|
|
146
|
|
96
|
|
Other postretirement
income (expense) (A)
|
|
7
|
|
(10)
|
|
Operating
Income
|
|
$
1,534
|
|
$
1,755
|
|
|
|
|
|
|
|
Segment
Profit
|
|
$
1,720
|
|
$
1,852
|
|
÷ Sales
|
|
$
9,804
|
|
$
9,611
|
|
Segment Profit Margin
%
|
|
17.5%
|
|
19.3%
|
|
|
|
|
|
|
|
Operating
Income
|
|
$
1,534
|
|
$
1,755
|
|
÷ Sales
|
|
$
9,804
|
|
$
9,611
|
|
Operating Income
Margin %
|
|
15.6%
|
|
18.3%
|
|
|
(A) Included in cost
of products and services sold and selling, general and
administrative expenses.
|
(B) Includes
repositioning, asbestos, environmental expenses and equity income
adjustment.
|
|
We believe these
measures are useful to investors and management in understanding
our ongoing operations and in analysis of ongoing operating
trends.
|
Honeywell
International Inc
|
Reconciliation of
Segment Profit to Operating Income Excluding Pension Mark-to-Market
Adjustment and
|
Calculation of
Segment Profit and Operating Income Margins Excluding Pension
Mark-to-Market Adjustment (Unaudited)
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
|
|
December
31,
|
|
|
|
2015
|
|
|
|
|
|
|
|
Segment
Profit
|
|
|
$
7,256
|
|
|
|
|
|
|
|
|
Stock compensation
expense (A)
|
|
|
(175)
|
|
|
Repositioning and
other (A, B)
|
|
|
(576)
|
|
|
Pension ongoing
income (A)
|
|
|
430
|
|
|
Pension
mark-to-market adjustment (A)
|
|
|
(67)
|
|
|
Other postretirement
expense (A)
|
|
|
(40)
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
|
$
6,828
|
|
|
Pension
mark-to-market adjustment (A)
|
|
|
(67)
|
|
|
Operating Income
excluding pension mark-to-market adjustment
|
|
|
$
6,895
|
|
|
|
|
|
|
|
|
Segment
Profit
|
|
|
$
7,256
|
|
|
÷ Sales
|
|
|
$
38,581
|
|
|
Segment Profit Margin
%
|
|
|
18.8%
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
|
$
6,828
|
|
|
÷ Sales
|
|
|
$
38,581
|
|
|
Operating Income
Margin %
|
|
|
17.7%
|
|
|
|
|
|
|
|
|
Operating Income
excluding pension mark-to-market adjustment
|
|
|
$
6,895
|
|
|
÷ Sales
|
|
|
$
38,581
|
|
|
Operating Income
Margin excluding pension mark-to-market adjustment %
|
|
|
17.9%
|
|
|
|
(A) Included in cost
of products and services sold and selling, general and
administrative expenses.
|
(B) Includes
repositioning, asbestos, environmental expenses and equity income
adjustment.
|
|
We believe these
measures are useful to investors and management in understanding
our ongoing operations and in analysis of ongoing operating
trends.
|
Honeywell
International Inc
|
Reconciliation of
Earnings Per Share to Earnings Per Share, Excluding Pension
Mark-to-Market Adjustment and Debt Refinancing Expenses
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
December
31,
|
|
|
|
December
31,
|
|
|
|
|
2015
(1)
|
|
|
|
2015
(2)
|
|
|
|
|
|
|
|
|
|
|
Earnings per share of
common stock - assuming dilution
|
|
|
$
1.53
|
|
|
|
$
6.04
|
|
Pension
mark-to-market adjustment
|
|
|
0.05
|
|
|
|
0.06
|
|
Debt refinancing
expenses
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Earnings per share of
common stock - assuming dilution,
|
|
|
|
|
|
|
|
|
excluding pension
mark-to-market and debt refinancing expenses
|
|
|
$
1.58
|
|
|
|
$
6.10
|
|
|
|
|
|
|
|
|
|
|
(1) Utilizes weighted
average shares of 780.8 million. Mark-to-market uses a
blended tax rate of 36.1%
|
|
(2) Utilizes weighted
average shares of 789.3 million. Mark-to-market uses a
blended tax rate of 36.1%
|
|
|
|
|
|
|
|
|
|
|
We believe earnings
per share, excluding pension mark-to-market and debt refinancing
expenses, is a measure that is useful to investors and management
in understanding our ongoing operations and in analysis of ongoing
operating trends.
|
|
Honeywell
International Inc
|
Calculation of SBG
Segment Profit Margin Excluding Mergers and Acquisitions
(Unaudited)
|
(Dollars in
millions)
|
|
|
|
|
|
Three Months
Ended
|
|
September
30,
|
|
|
2016
|
|
Aerospace
|
|
|
|
Segment Profit
excluding mergers and acquisitions
|
|
$
658
|
|
÷ Sales excluding
mergers and acquisitions
|
|
$
3,559
|
|
Segment Profit Margin
excluding mergers and acquisitions %
|
|
18.5%
|
|
|
|
|
|
Home and Building
Technologies
|
|
|
|
Segment Profit
excluding mergers and acquisitions
|
|
$
416
|
|
÷ Sales excluding
mergers and acquisitions
|
|
$
2,384
|
|
Segment Profit Margin
excluding mergers and acquisitions %
|
|
17.4%
|
|
|
|
|
|
Performance
Materials and Technologies
|
|
|
|
Segment Profit
excluding mergers and acquisitions
|
|
$
473
|
|
÷ Sales excluding
mergers and acquisitions
|
|
$
2,195
|
|
Segment Profit Margin
excluding mergers and acquisitions %
|
|
21.5%
|
|
|
|
|
|
Safety and
Productivity Solutions
|
|
|
|
Segment Profit
excluding mergers and acquisitions
|
|
$
166
|
|
÷ Sales excluding
mergers and acquisitions
|
|
$
1,092
|
|
Segment Profit Margin
excluding mergers and acquisitions %
|
|
15.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
We believe these
measures are useful to investors and management in understanding
our ongoing operations and in analysis of ongoing operating
trends.
|
|
Honeywell
International Inc
|
Reconciliation of
Core Organic Sales Growth (Unaudited)
|
|
|
|
Three Months
Ended
|
|
September
30,
|
|
2016
|
Honeywell
|
|
Reported sales
growth
|
2%
|
Less: Foreign
currency translation, acquisitions, divestitures and
other
|
5%
|
Less: Raw materials
pricing in R&C
|
-
|
|
|
Core organic sales
growth
|
(3%)
|
|
|
PMT
|
|
Reported sales
growth
|
2%
|
Less: Foreign
currency translation, acquisitions, divestitures and
other
|
5%
|
Less: Raw materials
pricing in R&C
|
-
|
|
|
Core organic sales
growth
|
(3%)
|
|
|
Throughout this press
release, core organic sales growth refers to reported sales growth
less the impacts from foreign currency translation, M&A and raw
materials pass-through pricing in the Resins & Chemicals
business of PMT. The raw materials pricing impact is excluded in
instances where raw materials costs are passed through to
customers, which drives fluctuations in selling prices not tied to
volume growth.
|
|
We believe core
organic sales growth is a measure that is useful to investors and
management in understanding our ongoing operations and in analysis
of ongoing operating trends.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/honeywell-reports-third-quarter-2016-sales-of-98-billion-up-2-earnings-per-share-of-160-300349046.html
SOURCE Honeywell