MORRIS PLAINS, N.J.,
Jan. 29, 2016 /PRNewswire/ --
Honeywell (NYSE: HON) today announced results for the fourth
quarter and full-year of 2015:
Total
Honeywell
|
|
|
|
|
|
|
|
($ Millions, except
Earnings Per Share)
|
FY 2014
|
FY 2015
|
Change
|
Sales
|
40,306
|
38,581
|
(4%)
|
Segment
Margin
|
16.6%
|
18.8%
|
220 bps
|
Operating Income
Margin (Ex-Pension MTM)
|
15.1%
|
17.9%
|
280 bps
|
Earnings Per Share
(Reported)
|
$5.33
|
$6.04
|
13%
|
Earnings Per Share
(Ex-Pension MTM)
|
$5.56
|
$6.10
|
10%
|
Cash Flow from
Operations
|
5,024
|
5,454
|
9%
|
Free Cash Flow
(1)
|
3,930
|
4,381
|
11%
|
|
|
|
|
|
4Q 2014
|
4Q 2015
|
Change
|
Sales
|
10,266
|
9,982
|
(3%)
|
Segment
Margin
|
15.9%
|
18.8%
|
290 bps
|
Operating Income
Margin (Ex-Pension MTM)
|
14.5%
|
18.0%
|
350 bps
|
Earnings Per Share
(Reported)
|
$1.20
|
$1.53
|
28%
|
Earnings Per Share
(Ex-Pension MTM)
|
$1.43
|
$1.58
|
10%
|
Cash Flow from
Operations
|
1,762
|
1,959
|
11%
|
Free Cash Flow
(1)
|
1,348
|
1,571
|
17%
|
|
|
|
|
(1) Cash Flow from Operations
Less Capital Expenditures
|
|
*Throughout this
press release, core organic sales growth refers to reported sales
growth less the impacts from foreign currency translation, M&A
and raw materials pass-through pricing in the Resins &
Chemicals business of PMT. The raw materials pricing impact is
excluded in instances where raw materials costs are passed through
to customers, which drives fluctuations in selling prices not tied
to volume growth. A reconciliation of core organic sales growth to
reported sales growth is provided in the attached financial
tables.
|
"Honeywell delivered a strong fourth quarter, capping off
another year of robust margin expansion, earnings growth, and cash
flow," said Honeywell Chairman and CEO Dave
Cote. "We grew earnings 10% in a tough environment,
representing our sixth consecutive year of double-digit earnings
growth. Segment margins grew by 220 basis points driven by
strong execution across the portfolio and our key process
initiatives, including HOS Gold. Free Cash Flow for the full
year increased 11% to $4.4 billion,
which exceeded the high-end of our guidance range and included over
125% conversion in the fourth quarter. We committed to more
than $6 billion in acquisitions in
2015 to bolster our Great Positions in Good Industries, reinvested
$1.1 billion in our businesses
through high-return capital expenditure projects, and returned more
than $3.5 billion to our shareowners,
including a 15% increase in our dividend. We also funded more
than $160 million in new
restructuring projects, including $60
million in the fourth quarter, which will put us in an even
stronger position for the future."
"We are planning conservatively in 2016 as we are expecting
another year of slow global economic growth," continued Cote.
"But, we remain confident in Honeywell's ability to outperform.
We will support growth where there are opportunities to drive
outperformance, be cautious in our sales planning, plan costs and
spending conservatively, and continue to support the seed planting
for new products, services, geographies, and process improvements
that allow us to perform well now and in the future. We
expect continued margin expansion and earnings outperformance in
2016 and over the long term, supported by our balanced portfolio,
HOS Gold breakthrough goals, further penetration of High Growth
Regions, and funded restructuring projects."
The company also reaffirms its full-year 2016 guidance.
2016 Full-Year
Guidance
|
|
|
|
|
|
|
2016
Current Guidance
|
Change
vs. 2015
|
Sales
|
$39.9B -
$40.9B
|
3% - 6%
|
Core Organic
Growth
|
|
1% -
2%
|
Segment
Margin
|
18.9% -
19.3%
|
10 - 50 bps
(2)
|
Operating Income
Margin (Ex-Pension MTM)
|
18.0% -
18.4%
|
10 - 50 bps
(3)
|
Earnings Per Share
(Ex-Pension MTM)
|
$6.45 -
$6.70
|
6% - 10%
|
Free Cash Flow
(1)
|
$4.6 -
$4.8B
|
5% - 10%
|
|
|
|
1. Cash Flow
from Operations Less Capital Expenditures
|
2. Segment
Margin Ex-M&A Up 80 - 110 bps
|
3. Operating
Margin Ex-M&A Up 80 - 110 bps
|
Full-year and fourth quarter 2015 results by business segment
are provided
below.
Segment
Performance
|
|
|
|
|
|
|
Aerospace
|
|
|
|
|
|
|
|
($
Millions)
|
FY 2014
|
FY 2015
|
% Change
|
Sales
|
15,598
|
15,237
|
(2%)
|
Segment
Profit
|
2,915
|
3,218
|
10%
|
Segment
Margin
|
18.7%
|
21.1%
|
240 bps
|
|
|
|
|
($
Millions)
|
4Q 2014
|
4Q 2015
|
% Change
|
Sales
|
3,842
|
3,983
|
4%
|
Segment
Profit
|
663
|
856
|
29%
|
Segment
Margin
|
17.3%
|
21.5%
|
420 bps
|
- Sales for the fourth quarter were up 2% on a core organic
basis, and were up 4% reported driven by the $184 million OEM incentives incurred in the
fourth quarter of 2014 partially offset by the unfavorable impact
of foreign currency. Commercial OE sales were up 9% on a core
organic basis (45% reported) driven by strong Business and General
Aviation (BGA) engine shipments and higher shipments to large Air
Transport and Regional (ATR) OEMs. Commercial Aftermarket
sales were up 3% on a core organic basis (2% reported) driven by
continued growth in repair and overhaul activities. Defense
& Space sales decreased (1%) on a core organic basis (down 3%
reported) driven by lower sales to the U.S. government and a
difficult prior year comparison in the international
business. Transportation Systems sales were up 1% on a core
organic basis driven by new platform launches and higher diesel and
gas turbo penetration on passenger vehicles, partially offset by
lower commercial vehicle production. TS sales were down (10%)
reported due to the unfavorable impact of foreign currency.
- Segment profit for the fourth quarter was up 29% and segment
margins expanded 420 bps to 21.5%, driven by the fourth quarter
2014 OEM incentives, productivity net of inflation, and commercial
excellence, partially offset by the margin impact of higher OE
shipments and continued investments for growth. Excluding the
fourth quarter 2014 OEM incentives, segment profit was up 1%, and
segment margins expanded 50 basis points.
Automation and
Control Solutions
|
|
|
|
|
($
Millions)
|
FY 2014
|
FY 2015
|
% Change
|
Sales
|
14,487
|
14,109
|
(3%)
|
Segment
Profit
|
2,200
|
2,313
|
5%
|
Segment
Margin
|
15.2%
|
16.4%
|
120 bps
|
|
|
|
|
($
Millions)
|
4Q 2014
|
4Q 2015
|
% Change
|
Sales
|
3,847
|
3,721
|
(3%)
|
Segment
Profit
|
613
|
616
|
Flat
|
Segment
Margin
|
15.9%
|
16.6%
|
70 bps
|
- Sales for the fourth quarter were flat on a core organic basis
and down (3%) reported driven by the unfavorable impact of foreign
currency. Energy, Safety & Security (ESS) sales decreased
(1%) on a core organic basis (down 3% reported) driven primarily by
a difficult prior year comparison in Sensing & Productivity
Solutions (S&PS), partially offset by continued growth in
Security and Fire (HSF) on a global basis. Building Solutions
& Distribution (BSD) sales increased 3% on a core organic basis
(down 3% reported) driven by continued strength in Americas
Distribution partially offset by slowing Building Solutions backlog
conversion.
- Segment profit for the fourth quarter was flat and segment
margins expanded 70 bps to 16.6% driven by productivity net of
inflation, benefits of previously funded restructuring projects,
and commercial excellence, partially offset by continued
investments for growth.
Performance
Materials and Technologies
|
|
|
|
|
($
Millions)
|
FY 2014
|
FY 2015
|
% Change
|
Sales
|
10,221
|
9,235
|
(10%)
|
Segment
Profit
|
1,817
|
1,935
|
6%
|
Segment
Margin
|
17.8%
|
21.0%
|
320 bps
|
|
|
|
|
($
Millions)
|
4Q 2014
|
4Q 2015
|
% Change
|
Sales
|
2,577
|
2,278
|
(12%)
|
Segment
Profit
|
425
|
462
|
9%
|
Segment
Margin
|
16.5%
|
20.3%
|
380 bps
|
- Sales for the fourth quarter were down (4%) on a core organic
basis and down (12%) reported driven by the unfavorable impact of
foreign currency and lower raw materials pass-through pricing in
Resins & Chemicals. The decrease in core organic sales
was primarily driven by lower UOP gas processing, equipment and
licensing sales, HPS field products weakness, and lower volume in
Resins & Chemicals, partially offset by higher UOP catalyst
shipments and higher volume in Fluorine Products.
- Segment profit for the fourth quarter was up 9% and segment
margins increased 380 bps to 20.3%, driven by productivity net of
inflation, commercial excellence, and the favorable impact of raw
materials pass-through pricing in Resins & Chemicals (pricing
model protects profit dollars).
Honeywell will discuss its results during its investor
conference call today starting at 9:30 a.m.
EST. To participate on the conference call, please
dial (877) 780-3381 (domestic) or (719) 325-2336 (international)
approximately ten minutes before the 9:30
a.m. EST start. Please mention to the operator that you are
dialing in for Honeywell's fourth quarter 2015 earnings call. 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.
EST, January 29, until
12:30 p.m. EST, February 5, by dialing (888) 203-1112 (domestic)
or (719) 457-0820 (international). The access code is 4078904.
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.honeywellnow.com.
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.
Honeywell
International Inc
|
|
Consolidated
Statement of Operations (Unaudited)
|
|
(Dollars in millions,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Product
sales
|
$ 7,960
|
|
$ 8,185
|
|
$ 30,695
|
|
$ 32,398
|
|
Service
sales
|
2,022
|
|
2,081
|
|
7,886
|
|
7,908
|
|
Net sales
|
9,982
|
|
10,266
|
|
38,581
|
|
40,306
|
|
|
|
|
|
|
|
|
|
|
|
Costs, expenses and
other
|
|
|
|
|
|
|
|
|
Cost of products sold (A)
|
5,649
|
|
6,203
|
|
21,775
|
|
23,889
|
|
Cost of services sold (A)
|
1,268
|
|
1,363
|
|
4,972
|
|
5,068
|
|
|
|
6,917
|
|
7,566
|
|
26,747
|
|
28,957
|
|
Selling, general and administrative expenses (A)
|
1,332
|
|
1,460
|
|
5,006
|
|
5,518
|
|
Other (income) expense
|
(4)
|
|
(146)
|
|
(68)
|
|
(305)
|
|
Interest and other financial charges
|
84
|
|
82
|
|
310
|
|
318
|
|
|
|
8,329
|
|
8,962
|
|
31,995
|
|
34,488
|
|
|
|
|
|
|
|
|
|
|
|
Income before
taxes
|
1,653
|
|
1,304
|
|
6,586
|
|
5,818
|
|
Tax
expense
|
450
|
|
329
|
|
1,739
|
|
1,489
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
1,203
|
|
975
|
|
4,847
|
|
4,329
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income
attributable to the noncontrolling interest
|
9
|
|
19
|
|
79
|
|
90
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Honeywell
|
$ 1,194
|
|
$ 956
|
|
$ 4,768
|
|
$ 4,239
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share of
common stock - basic
|
$
1.55
|
|
$ 1.22
|
|
$
6.11
|
|
$
5.40
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share of
common stock - assuming dilution
|
$
1.53
|
|
$ 1.20
|
|
$
6.04
|
|
$
5.33
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding - basic
|
771.8
|
|
783.8
|
|
779.8
|
|
784.4
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding - assuming dilution
|
780.8
|
|
794.1
|
|
789.3
|
|
795.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
|
|
|
|
|
|
|
|
|
|
|
Below is a
reconciliation of Earnings per share to Earnings per share,
excluding mark-to-market pension expense. We believe this
measure is useful to investors and management in understanding our
ongoing operations and in analysis of ongoing operating
trends.
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2015
1
|
|
2014
1
|
|
2015
1
|
|
2014
1
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share of
common stock - assuming dilution
|
$
1.53
|
|
$ 1.20
|
|
$
6.04
|
|
$
5.33
|
|
|
Mark-to-market
pension expense
|
0.05
|
|
0.23
|
|
0.06
|
|
0.23
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share of
common stock - assuming dilution,
|
|
|
|
|
|
|
|
|
|
excluding
mark-to-market pension expense
|
$
1.58
|
|
$ 1.43
|
|
$
6.10
|
|
$
5.56
|
|
|
|
|
|
|
|
|
|
|
|
|
1- EPS utilizes
weighted average shares outstanding and the effective tax rate for
the period. Mark-to-market uses a blended tax rate of 36.1%
and 28.1% for 2015 and 2014.
|
|
|
|
|
|
|
|
|
|
|
|
Honeywell
International Inc
|
Segment Data
(Unaudited)
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
December
31,
|
|
December
31,
|
Net Sales
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
Aerospace
|
|
$ 3,983
|
|
$ 3,842
|
|
$ 15,237
|
|
$ 15,598
|
|
|
|
|
|
|
|
|
|
|
Automation and
Control Solutions
|
|
3,721
|
|
3,847
|
|
14,109
|
|
14,487
|
|
|
|
|
|
|
|
|
|
|
Performance Materials
and Technologies
|
|
2,278
|
|
2,577
|
|
9,235
|
|
10,221
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ 9,982
|
|
$ 10,266
|
|
$ 38,581
|
|
$ 40,306
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Segment Profit to Income Before Taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
December
31,
|
|
December
31,
|
Segment
Profit
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
Aerospace
|
|
$
856
|
|
$
663
|
|
$ 3,218
|
|
$ 2,915
|
|
|
|
|
|
|
|
|
|
|
Automation and
Control Solutions
|
|
616
|
|
613
|
|
2,313
|
|
2,200
|
|
|
|
|
|
|
|
|
|
|
Performance Materials
and Technologies
|
|
462
|
|
425
|
|
1,935
|
|
1,817
|
|
|
|
|
|
|
|
|
|
|
Corporate
|
|
(54)
|
|
(69)
|
|
(210)
|
|
(236)
|
|
|
|
|
|
|
|
|
|
|
|
Total segment
profit
|
|
1,880
|
|
1,632
|
|
7,256
|
|
6,696
|
|
|
|
|
|
|
|
|
|
|
Other (expense)
income (A)
|
|
(1)
|
|
137
|
|
38
|
|
269
|
Interest and other
financial charges
|
|
(84)
|
|
(82)
|
|
(310)
|
|
(318)
|
Stock compensation
expense (B)
|
|
(43)
|
|
(44)
|
|
(175)
|
|
(187)
|
Pension ongoing
income (B)
|
|
131
|
|
67
|
|
430
|
|
254
|
Pension
mark-to-market expense (B)
|
|
(67)
|
|
(249)
|
|
(67)
|
|
(249)
|
Other postretirement
expense (B)
|
|
(10)
|
|
(12)
|
|
(40)
|
|
(49)
|
Repositioning and
other charges (B)
|
|
(153)
|
|
(145)
|
|
(546)
|
|
(598)
|
|
|
|
|
|
|
|
|
|
|
Income before
taxes
|
|
$ 1,653
|
|
$ 1,304
|
|
$ 6,586
|
|
$ 5,818
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$ 5,455
|
|
$ 6,959
|
Accounts, notes and other receivables
|
|
8,075
|
|
7,960
|
Inventories
|
|
4,420
|
|
4,405
|
Deferred income taxes
|
|
-
|
|
722
|
Investments and other current assets
|
|
2,103
|
|
2,145
|
|
Total current
assets
|
|
20,053
|
|
22,191
|
|
|
|
|
|
|
Investments and
long-term receivables
|
|
517
|
|
465
|
Property, plant and
equipment - net
|
|
5,789
|
|
5,383
|
Goodwill
|
|
15,895
|
|
12,788
|
Other intangible
assets - net
|
|
4,577
|
|
2,208
|
Insurance recoveries
for asbestos related liabilities
|
|
426
|
|
454
|
Deferred income
taxes
|
|
283
|
|
404
|
Other
assets
|
|
1,776
|
|
1,558
|
|
|
|
|
|
|
|
Total
assets
|
|
$ 49,316
|
|
$ 45,451
|
|
|
|
|
|
|
LIABILITIES AND
SHAREOWNERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable
|
|
$ 5,580
|
|
$ 5,365
|
Commercial paper and other short-term borrowings
|
|
5,937
|
|
1,698
|
Current maturities of long-term debt
|
|
577
|
|
939
|
Accrued liabilities
|
|
6,277
|
|
6,771
|
|
Total current
liabilities
|
|
18,371
|
|
14,773
|
|
|
|
|
|
|
Long-term
debt
|
|
5,554
|
|
6,046
|
Deferred income
taxes
|
|
558
|
|
236
|
Postretirement
benefit obligations other than pensions
|
|
526
|
|
911
|
Asbestos related
liabilities
|
|
1,251
|
|
1,200
|
Other
liabilities
|
|
4,348
|
|
4,282
|
Redeemable
noncontrolling interest
|
|
290
|
|
219
|
Shareowners'
equity
|
|
18,418
|
|
17,784
|
|
|
|
|
|
|
|
Total liabilities,
redeemable noncontrolling interest and shareowners'
equity
|
|
$ 49,316
|
|
$ 45,451
|
|
|
|
|
|
|
Honeywell
International Inc
|
Consolidated
Statement of Cash Flows (Unaudited)
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net income
|
|
$ 1,203
|
|
$ 975
|
|
$ 4,847
|
|
$ 4,329
|
Less: Net income attributable to the noncontrolling
interest
|
|
9
|
|
19
|
|
79
|
|
90
|
Net income attributable to Honeywell
|
|
1,194
|
|
956
|
|
4,768
|
|
4,239
|
Adjustments to reconcile net income attributable to Honeywell to
net
|
|
|
|
|
|
|
|
|
cash provided by operating activities:
|
|
|
|
|
|
|
|
|
Depreciation
|
|
169
|
|
168
|
|
672
|
|
667
|
Amortization
|
|
53
|
|
58
|
|
211
|
|
257
|
Loss on
sale of non-strategic businesses and assets
|
|
2
|
|
-
|
|
1
|
|
11
|
Gain on
sale of available for sale investments
|
|
-
|
|
(116)
|
|
-
|
|
(221)
|
Repositioning and other charges
|
|
153
|
|
145
|
|
546
|
|
598
|
Net
payments for repositioning and other charges
|
|
(208)
|
|
(229)
|
|
(537)
|
|
(530)
|
Pension
and other postretirement (income) expense
|
|
(54)
|
|
194
|
|
(323)
|
|
44
|
Pension
and other postretirement benefit payments
|
|
(38)
|
|
(44)
|
|
(122)
|
|
(167)
|
Stock
compensation expense
|
|
43
|
|
44
|
|
175
|
|
187
|
Deferred
income taxes
|
|
31
|
|
(123)
|
|
315
|
|
132
|
Excess tax
benefits from share based payment arrangements
|
|
(12)
|
|
(31)
|
|
(81)
|
|
(102)
|
Other
|
|
(98)
|
|
(120)
|
|
(8)
|
|
(327)
|
Changes in
assets and liabilities, net of the effects of
|
|
|
|
|
|
|
|
|
acquisitions and divestitures:
|
|
|
|
|
|
|
|
|
Accounts, notes and other receivables
|
|
159
|
|
357
|
|
211
|
|
(172)
|
Inventories
|
|
250
|
|
79
|
|
230
|
|
(200)
|
Other current assets
|
|
191
|
|
(61)
|
|
80
|
|
120
|
Accounts payable
|
|
(4)
|
|
153
|
|
(17)
|
|
307
|
Accrued liabilities
|
|
128
|
|
332
|
|
(667)
|
|
181
|
Net cash provided by
operating activities
|
|
1,959
|
|
1,762
|
|
5,454
|
|
5,024
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Expenditures for property, plant and equipment
|
|
(388)
|
|
(414)
|
|
(1,073)
|
|
(1,094)
|
Proceeds from disposals of property, plant and equipment
|
|
12
|
|
6
|
|
15
|
|
18
|
Increase in investments
|
|
(1,013)
|
|
(935)
|
|
(6,714)
|
|
(4,074)
|
Decrease in investments
|
|
2,537
|
|
1,164
|
|
6,587
|
|
3,288
|
Cash paid for acquisitions, net of cash acquired
|
|
(5,043)
|
|
-
|
|
(5,228)
|
|
(4)
|
Proceeds from sales of businesses, net of fees paid
|
|
(2)
|
|
3
|
|
1
|
|
160
|
Other
|
|
(33)
|
|
(61)
|
|
(102)
|
|
(170)
|
Net cash used for
investing activities
|
|
(3,930)
|
|
(237)
|
|
(6,514)
|
|
(1,876)
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Net increase (decrease) in commercial paper and other short-term
borrowings
|
|
2,254
|
|
(236)
|
|
4,265
|
|
309
|
Proceeds from issuance of common stock
|
|
36
|
|
59
|
|
186
|
|
265
|
Proceeds from issuance of long-term debt
|
|
12
|
|
18
|
|
60
|
|
97
|
Payments of long-term debt
|
|
(732)
|
|
(2)
|
|
(880)
|
|
(609)
|
Excess tax benefits from share based payment
arrangements
|
|
12
|
|
31
|
|
81
|
|
102
|
Repurchases of common stock
|
|
(163)
|
|
(235)
|
|
(1,884)
|
|
(924)
|
Cash dividends
paid
|
|
(465)
|
|
(409)
|
|
(1,726)
|
|
(1,510)
|
Other
|
|
-
|
|
5
|
|
-
|
|
(2)
|
Net cash provided by
(used for) financing activities
|
|
954
|
|
(769)
|
|
102
|
|
(2,272)
|
|
|
|
|
|
|
|
|
|
Effect of foreign
exchange rate changes on cash and cash equivalents
|
|
(91)
|
|
(225)
|
|
(546)
|
|
(339)
|
Net (decrease)
increase in cash and cash equivalents
|
|
(1,108)
|
|
531
|
|
(1,504)
|
|
537
|
Cash and cash
equivalents at beginning of period
|
|
6,563
|
|
6,428
|
|
6,959
|
|
6,422
|
Cash and cash
equivalents at end of period
|
|
$ 5,455
|
|
$ 6,959
|
|
$ 5,455
|
|
$ 6,959
|
|
|
|
|
|
|
|
|
|
Honeywell
International Inc
|
Reconciliation of
Cash Provided by Operating Activities to Free Cash Flow and
Calculation of Free Cash Flow Conversion (Unaudited)
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
Cash provided by
operating activities
|
$ 1,959
|
|
$ 1,762
|
|
$ 5,454
|
|
$ 5,024
|
Expenditures for
property, plant and equipment
|
(388)
|
|
(414)
|
|
(1,073)
|
|
(1,094)
|
Free cash
flow
|
$ 1,571
|
|
$ 1,348
|
|
$ 4,381
|
|
$ 3,930
|
|
|
|
|
|
|
|
|
Net income,
attributable to Honeywell
|
$ 1,194
|
|
$
956
|
|
$ 4,768
|
|
$ 4,239
|
Pension
mark-to-market adjustment, net of tax (A)
|
43
|
|
179
|
|
43
|
|
179
|
Net income,
attributable to Honeywell, excluding pension mark-to-market
adjustment
|
$ 1,237
|
|
$ 1,135
|
|
$ 4,811
|
|
$ 4,418
|
|
|
|
|
|
|
|
|
Cash provided by
operating activities
|
$ 1,959
|
|
$ 1,762
|
|
$ 5,454
|
|
$ 5,024
|
÷ Net income,
attributable to Honeywell
|
$ 1,194
|
|
$
956
|
|
$ 4,768
|
|
$ 4,239
|
Operating cash flow
conversion
|
164%
|
|
184%
|
|
114%
|
|
119%
|
|
|
|
|
|
|
|
|
Free cash
flow
|
$ 1,571
|
|
$ 1,348
|
|
$ 4,381
|
|
$ 3,930
|
÷ Net income,
attributable to Honeywell, excluding pension mark-to-market
adjustment
|
$ 1,237
|
|
$ 1,135
|
|
$ 4,811
|
|
$ 4,418
|
Free cash flow
conversion
|
127%
|
|
119%
|
|
91%
|
|
89%
|
|
|
|
|
|
|
|
|
(A) Mark-to-market uses a blended tax rate of 36.1%
and 28.1% for 2015 and 2014.
|
|
|
|
|
|
|
|
|
We define free cash flow as cash provided by
operating activities less cash expenditures for property, plant and
equipment.
|
|
|
|
|
|
|
|
|
We define free cash flow conversion as free cash flow
divided by net income, attributable to Honeywell, excluding pension
mark-to-market adjustment.
|
|
|
|
|
|
|
|
|
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
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
Segment
Profit
|
|
$ 1,880
|
|
$ 1,632
|
|
$ 7,256
|
|
$ 6,696
|
|
|
|
|
|
|
|
|
|
Stock compensation
expense (A)
|
|
(43)
|
|
(44)
|
|
(175)
|
|
(187)
|
Repositioning and
other (A, B)
|
|
(158)
|
|
(154)
|
|
(576)
|
|
(634)
|
Pension ongoing
income (A)
|
|
131
|
|
67
|
|
430
|
|
254
|
Pension
mark-to-market adjustment (A)
|
|
(67)
|
|
(249)
|
|
(67)
|
|
(249)
|
Other postretirement
expense (A)
|
|
(10)
|
|
(12)
|
|
(40)
|
|
(49)
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
$ 1,733
|
|
$ 1,240
|
|
$ 6,828
|
|
$ 5,831
|
Pension
mark-to-market adjustment (A)
|
|
(67)
|
|
(249)
|
|
(67)
|
|
(249)
|
Operating Income
excluding pension mark-to-market adjustment
|
|
$ 1,800
|
|
$ 1,489
|
|
$ 6,895
|
|
$ 6,080
|
|
|
|
|
|
|
|
|
|
Segment
Profit
|
|
$ 1,880
|
|
$ 1,632
|
|
$ 7,256
|
|
$ 6,696
|
÷ Sales
|
|
$ 9,982
|
|
$ 10,266
|
|
$ 38,581
|
|
$ 40,306
|
Segment Profit Margin
%
|
|
18.8%
|
|
15.9%
|
|
18.8%
|
|
16.6%
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
$ 1,733
|
|
$ 1,240
|
|
$ 6,828
|
|
$ 5,831
|
÷ Sales
|
|
$ 9,982
|
|
$ 10,266
|
|
$ 38,581
|
|
$ 40,306
|
Operating Income
Margin %
|
|
17.4%
|
|
12.1%
|
|
17.7%
|
|
14.5%
|
|
|
|
|
|
|
|
|
|
Operating Income
excluding pension mark-to-market adjustment
|
|
$ 1,800
|
|
$ 1,489
|
|
$ 6,895
|
|
$ 6,080
|
÷ Sales
|
|
$ 9,982
|
|
$ 10,266
|
|
$ 38,581
|
|
$ 40,306
|
Operating Income
Margin excluding pension mark-to-market adjustment %
|
|
18.0%
|
|
14.5%
|
|
17.9%
|
|
15.1%
|
|
|
|
|
|
|
|
|
|
(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
Core Organic Sales Growth (Unaudited)
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2015
|
|
2015
|
Honeywell
|
|
|
|
Reported sales
growth
|
(3%)
|
|
(4%)
|
Foreign currency
translation, acquisitions, divestitures and other
|
2%
|
|
4%
|
Raw materials pricing
in R&C
|
1%
|
|
1%
|
|
|
|
|
Core organic sales
growth
|
0%
|
|
1%
|
|
|
|
|
PMT
|
|
|
|
Reported sales
growth
|
(12%)
|
|
(10%)
|
Foreign currency
translation, acquisitions, divestitures and other
|
4%
|
|
4%
|
Raw materials pricing
in R&C
|
4%
|
|
5%
|
|
|
|
|
Core organic sales
growth
|
(4%)
|
|
(1%)
|
|
|
|
|
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.
|
Contacts:
|
|
|
|
Media
|
Investor
Relations
|
Robert C.
Ferris
|
Mark
Macaluso
|
(973)
455-3388
|
(973)
455-2222
|
rob.ferris@honeywell.com
|
mark.macaluso@honeywell.com
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/honeywell-reports-full-year-2015-sales-of-386-billion-earnings-up-10-to-610-300212071.html
SOURCE Honeywell