TIDMHON 
 
Honeywell Reports Second Quarter 2015 Sales Of $9.8 Billion; EPS Of $1.51 Per 
                       Share; Raising 2015 EPS Guidance 
 
 
- EPS Up 9% Reported, Up 10% Normalized at 26.5% Tax Rate 
 
- Core Organic Sales Growth 3%* Driven By Commercial Aero, ESS and Advanced 
Materials 
 
- Reported Sales Decline 5% Due to Foreign Currency and FM Divestiture 
 
- Segment Margin Improvement of 170 bps to 18.4% 
 
- Raising 2015 EPS Guidance Range to $6.05 - $6.15, Up 9%-11% 
 
MORRIS TOWNSHIP, N.J., July 17, 2015 -- Honeywell (NYSE: HON) today announced 
its results for the second quarter of 2015: 
 
Total Honeywell 
 
($ Millions, except Earnings Per Share) 2Q 2014 2Q 2015 Change 
 
Sales                                    10,253   9,775    (5%) 
 
Segment Margin                            16.7%   18.4% 170 bps 
 
Operating Income Margin                   15.4%   17.6% 220 bps 
 
Earnings Per Share                        $1.38   $1.51      9% 
 
Earnings Per Share (At 26.5% Tax Rate)    $1.37   $1.51     10% 
 
Cash Flow from Operations                 1,341   1,408      5% 
 
Free Cash Flow (1)                        1,112   1,165      5% 
 
(1)  Cash Flow from Operations Less Capital Expenditures 
 
 
"Honeywell had a terrific second quarter capping off a strong first half of 
2015," said Honeywell Chairman and CEO Dave Cote. "We delivered 3% core organic 
sales growth and had another quarter of double-digit earnings growth when 
normalized for tax. We saw growth acceleration in both the short- and 
long-cycle businesses within Aerospace, continued growth in our commercial and 
industrial businesses within ACS, and higher volume across our Advanced 
Materials portfolio, particularly in Fluorine Products. We saw margin expansion 
in each segment, with a significant portion from gross margin, as our new 
products, process focus, disciplined cost management, and restructuring 
continue to distinguish Honeywell's performance. We remain committed to seed 
planting and process improvements throughout our portfolio. Once again we 
proactively funded repositioning actions that will improve our cost position 
and drive the efficiencies necessary for winning in a slow growth global 
economy. Our great first half performance gives us confidence to again raise 
the low end of our full-year EPS guidance range by $0.05 to $6.05-$6.15, and we 
remain committed to our full-year core organic sales growth and free cash flow 
estimates. We believe that our balanced portfolio of short- and long-cycle 
businesses, penetration in High Growth Regions, and the deployment of our key 
process initiatives will continue to drive results this year and over the long 
term." 
 
The company is updating its full-year 2015 guidance and now expects: 
 
2015 Full-Year Guidance 
 
                                                                     Change 
 
                                         Prior        Revised      vs. 2014 
                                       Guidance      Guidance 
 
Sales                                   $39.0 -       $39.0 -     (2%) - (3%) 
                                        $39.6B        $39.6B 
 
Core Organic Growth                       3%           3% 
 
Segment Margin                       18.3% - 18.6% 18.4% - 18.6% 180 - 200 bps 
                                                                      (2) 
 
Operating Income Margin (Ex-Pension  17.4% - 17.7% 17.5% - 17.7% 240 - 260 bps 
MTM)                                                                  (3) 
 
Earnings Per Share (Ex-Pension MTM)  $6.00 - $6.15 $6.05 - $6.15    9% - 11% 
 
Free Cash Flow (1)                    $4.2 - $4.3B  $4.2 - $4.3B    8% - 10% 
 
1. Cash Flow from Operations Less Capital Expenditures 
 
2. Segment Margin ex-4Q14 $184M OEM Incentives Up 140 - 160 bps 
 
3. Operating Margin ex-4Q14 $184M OEM Incentives Up 200 - 220 bps 
 
Second Quarter Segment Performance 
 
Aerospace 
 
($ Millions)   2Q 2014 2Q 2015 % Change 
 
Sales            4,010   3,827     (5%) 
 
Segment Profit     759     777       2% 
 
Segment Margin   18.9%   20.3%  140 bps 
 
  * Sales for the second quarter were up 3% on a core organic basis, and were 
    down 5% reported driven by the Friction Materials divestiture and the 
    unfavorable impact of foreign currency in Transportation Systems. 
    Commercial OE sales were up 6% on a reported and core organic basis driven 
    by strong Business and General Aviation (BGA) engine shipments. Commercial 
    Aftermarket sales were up 3% on a core organic basis (2% reported) driven 
    by continued growth in repair and overhaul activities and Air Transport and 
    Regional (ATR) spares growth, partially offset by a decline in RMU 
    (Retrofit, Modifications, and Upgrades) sales in BGA. Defense & Space sales 
    increased 1% on a core organic basis (flat reported) driven by strong 
    international growth, partially offset by lower sales to the U.S. 
    government. Transportation Systems sales were up 5% on a core organic basis 
    driven by new platform launches and higher gas turbo penetration globally. 
    TS sales were down 25% reported due to the Friction Materials divestiture 
    and the unfavorable impact of foreign currency. 
  * Segment profit was up 2% and segment margins expanded 140 bps to 20.3%, 
    driven by commercial excellence, the favorable impact of the Friction 
    Materials divestiture, foreign currency hedges, and productivity net of 
    inflation, partially offset by the margin impact of higher OE shipments. 
 
 
 
 
Automation and Control Solutions 
 
 
 
 
($ Millions)                     2Q 2014 2Q 2015 % Change 
 
Sales                              3,607   3,553     (1%) 
 
Segment Profit                       533     567       6% 
 
Segment Margin                     14.8%   16.0%  120 bps 
 
  * Sales for the second quarter were up 4% on a core organic basis and down 1% 
    reported driven by the unfavorable impact of foreign currency. Energy, 
    Safety, and Security (ESS) sales increased 5% on a core organic basis (flat 
    reported) driven primarily by continued growth in Scanning & Mobility, 
    Security, and Fire Safety. Building Solutions & Distribution (BSD) sales 
    increased 3% on a core organic basis (down 4% reported) driven by continued 
    strength in Americas Distribution. 
  * Segment profit was up 6% and segment margins expanded 120 bps to 16.0% 
    driven by productivity net of inflation and higher volume, partially offset 
    by continued investments for growth. 
 
 
 
 
Performance Materials and Technologies 
 
 
 
 
($ Millions)                           2Q 2014 2Q 2015 % Change 
 
Sales                                    2,636   2,395     (9%) 
 
Segment Profit                             475     509       7% 
 
Segment Margin                           18.0%   21.3%  330 bps 
 
  * Sales were down 1% on a core organic basis and down 9% reported driven by 
    the unfavorable impact of foreign currency and raw materials pricing in 
    Resins & Chemicals. The decrease in core organic sales was primarily driven 
    by lower volume in UOP and HPS associated with delays in customer projects 
    and lower UOP catalyst shipments, partially offset by higher volume across 
    Advanced Materials, particularly in Fluorine Products. 
  * Segment profit was up 7% and segment margins increased 330 bps to 21.3%, 
    driven by productivity net of inflation, commercial excellence, and the 
    impact of raw materials pricing in Resins & Chemicals. 
 
Honeywell will discuss its results during its investor conference call today 
starting at 9:30 a.m. EDT. To participate, please dial (888) 298-3451 
(domestic) or (719) 457-2605 (international) approximately ten minutes before 
the 9:30 a.m. EDT start. Please mention to the operator that you are dialing in 
for Honeywell's second quarter 2015 earnings call or provide the conference 
code HON2Q15. The live webcast of the investor call as well as related 
presentation materials will be available through the "Investor Relations" 
section of the company's Website (www.honeywell.com/investor). Investors can 
hear a replay of the conference call from 12:30 p.m. EDT, July 17, until 12:30 
p.m. EDT, July 24, by dialing (888) 203-1112 (domestic) or (719) 457-0820 
(international). The access code is 8213026. 
 
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. 
 
*Throughout this press release, core organic sales growth refers to reported 
sales growth less the impacts from foreign currency movement, M&A and raw 
materials 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 
necessarily tied to volume growth. A reconciliation of core organic sales 
growth to reported sales growth is provided in the attached financial tables. 
 
                         Honeywell International Inc. 
 
               Consolidated Statement of Operations (Unaudited) 
 
               (Dollars in millions, except per share amounts) 
 
                                  Three Months Ended       Six Months Ended 
 
                                       June 30,                June 30, 
 
                                   2015        2014        2015        2014 
 
Product sales                     $              $           $           $ 
                                      7,798      8,278      15,162      16,123 
 
Service sales                         1,977      1,975       3,826       3,809 
 
Net sales                             9,775     10,253      18,988      19,932 
 
Costs, expenses and other 
 
    Cost of products sold  (A)        5,541      6,047      10,754      11,826 
 
    Cost of services sold  (A)        1,273      1,249       2,422       2,437 
 
                                      6,814      7,296      13,176      14,263 
 
    Selling, general and              1,242      1,375       2,472       2,714 
administrative expenses (A) 
 
    Other (income) expense             (20)       (21)        (40)       (138) 
 
    Interest and other                   77         80         154         159 
financial charges 
 
                                      8,113      8,730      15,762      16,998 
 
Income before taxes                   1,662      1,523       3,226       2,934 
 
Tax expense                             440        397         858         772 
 
Net income                            1,222      1,126       2,368       2,162 
 
Less: Net income attributable            28         27          58          46 
to the noncontrolling interest 
 
Net income attributable to        $              $         $           $ 
Honeywell                             1,194      1,099       2,310       2,116 
 
Earnings per share of common    $              $         $           $ 
stock - basic                          1.52       1.40        2.95        2.70 
 
Earnings per share of common    $              $         $           $ 
stock - assuming dilution              1.51       1.38        2.91        2.66 
 
Weighted average number of            783.3      784.5       783.5       784.7 
shares outstanding - basic 
 
Weighted average number of            792.9      795.4       793.4       795.9 
shares outstanding - assuming 
dilution 
 
 
 
 
(A) Cost of products and services sold and selling, general and administrative 
expenses include amounts for repositioning and other charges, pension and other 
postretirement (income) expense, and stock compensation expense. 
 
 
 
                         Honeywell International Inc. 
 
                           Segment Data (Unaudited) 
 
                            (Dollars in millions) 
 
                              Three Months Ended          Six Months Ended 
 
                                   June 30,                   June 30, 
 
Net Sales                     2015          2014         2015         2014 
 
Aerospace                    $             $            $            $ 
                                 3,827         4,010        7,434        7,861 
 
Automation and Control           3,553         3,607        6,817        6,969 
Solutions 
 
Performance Materials and        2,395         2,636        4,737        5,102 
Technologies 
 
     Total                   $               $            $            $ 
                                 9,775        10,253       18,988       19,932 
 
           Reconciliation of Segment Profit to Income Before Taxes 
 
                              Three Months Ended          Six Months Ended 
 
                                   June 30,                   June 30, 
 
Segment Profit                2015          2014         2015         2014 
 
Aerospace                  $             $              $            $ 
                                   777           759        1,529        1,462 
 
Automation and Control             567           533        1,083        1,004 
Solutions 
 
Performance Materials and          509           475        1,012          948 
Technologies 
 
Corporate                         (50)          (58)        (100)        (109) 
 
     Total segment profit        1,803         1,709        3,524        3,305 
 
Other income (A)                    12            10           24          121 
 
Interest and other                (77)          (80)        (154)        (159) 
financial charges 
 
Stock compensation                (39)          (50)         (91)        (102) 
expense (B) 
 
Pension ongoing income             103            64          203          125 
(B) 
 
Other postretirement              (11)          (13)         (20)         (25) 
expense (B) 
 
Repositioning and other          (129)         (117)        (260)        (331) 
charges (B) 
 
Income before taxes          $             $            $            $ 
                                 1,662         1,523        3,226        2,934 
 
 
 
 
(A) Equity income (loss) of affiliated companies is included in segment profit. 
 
(B) Amounts included in cost of products and services sold and selling, general 
    and administrative expenses. 
 
 
 
                         Honeywell International Inc. 
 
                    Consolidated Balance Sheet (Unaudited) 
 
                             (Dollars in millions) 
 
                                                             June 30,  December 
                                                                         31, 
 
                                                               2015      2014 
 
ASSETS 
 
Current assets: 
 
    Cash and cash equivalents                                   $         $ 
                                                                5,954     6,959 
 
    Accounts, notes and other receivables                       8,237     7,960 
 
    Inventories                                                 4,447     4,405 
 
    Deferred income taxes                                         659       722 
 
    Investments and other current assets                        3,883     2,145 
 
       Total current assets                                    23,180    22,191 
 
Investments and long-term receivables                             491       465 
 
Property, plant and equipment - net                             5,381     5,383 
 
Goodwill                                                       12,763    12,788 
 
Other intangible assets - net                                   2,141     2,208 
 
Insurance recoveries for asbestos related liabilities             433       454 
 
Deferred income taxes                                             365       404 
 
Other assets                                                    1,658     1,558 
 
       Total assets                                               $         $ 
                                                               46,412    45,451 
 
LIABILITIES AND SHAREOWNERS' EQUITY 
 
Current liabilities: 
 
    Accounts payable                                            $         $ 
                                                                5,352     5,365 
 
    Short-term borrowings                                          25        51 
 
    Commercial paper                                            2,795     1,647 
 
    Current maturities of long-term debt                        1,337       939 
 
    Accrued liabilities                                         6,065     6,771 
 
       Total current liabilities                               15,574    14,773 
 
Long-term debt                                                  5,562     6,046 
 
Deferred income taxes                                             300       236 
 
Postretirement benefit obligations other than pensions            921       911 
 
Asbestos related liabilities                                    1,198     1,200 
 
Other liabilities                                               4,001     4,282 
 
Redeemable noncontrolling interest                                259       219 
 
Shareowners' equity                                            18,597    17,784 
 
       Total liabilities, redeemable noncontrolling               $         $ 
       interest and shareowners' equity                        46,412    45,451 
 
 
 
 
                          Honeywell International Inc. 
 
                Consolidated Statement of Cash Flows (Unaudited) 
 
                             (Dollars in millions) 
 
                                                Three Months    Six Months Ended 
                                                   Ended 
 
                                                  June 30,          June 30, 
 
                                               2015     2014     2015     2014 
 
Cash flows from operating activities: 
 
    Net income                                    $        $          $  $ 2,162 
                                                1,222    1,126    2,368 
 
    Less: Net income attributable to the           28       27       58       46 
noncontrolling interest 
 
    Net income attributable to Honeywell        1,194    1,099    2,310    2,116 
 
    Adjustments to reconcile net income 
attributable to Honeywell to net 
 
    cash provided by operating activities: 
 
        Depreciation                              172      165      335      333 
 
        Amortization                               54       68      107      138 
 
        Loss on sale of non-strategic               -       10        -       10 
businesses and assets 
 
        Gain on sale of available for sale          -        -        -    (105) 
investments 
 
        Repositioning and other charges           129      117      260      331 
 
        Net payments for repositioning and      (115)      (9)    (215)    (134) 
other charges 
 
        Pension and other postretirement         (92)     (51)    (183)    (100) 
income 
 
        Pension and other postretirement         (39)     (49)     (48)     (85) 
benefit payments 
 
        Stock compensation expense                 39       50       91      102 
 
        Deferred income taxes                      33       66      126       68 
 
        Excess tax benefits from share based      (9)     (19)     (56)     (49) 
payment arrangements 
 
        Other                                     205       91      103       67 
 
        Changes in assets and liabilities, 
net of the effects of 
 
        acquisitions and divestitures: 
 
           Accounts, notes and other             (80)    (271)    (250)    (425) 
receivables 
 
           Inventories                             61    (107)     (25)    (222) 
 
           Other current assets                  (96)    (104)     (38)      132 
 
           Accounts payable                        88      141     (24)      100 
 
           Accrued liabilities                  (136)      144    (664)    (248) 
 
Net cash provided by operating activities       1,408    1,341    1,829    2,029 
 
Cash flows from investing activities: 
 
    Expenditures for property, plant and        (243)    (229)    (408)    (421) 
equipment 
 
    Proceeds from disposals of property,            2        4        3       11 
plant and equipment 
 
    Increase in investments                   (2,365)  (1,093)  (3,866)  (1,724) 
 
    Decrease in investments                       953      533    2,059      943 
 
    Cash paid for acquisitions, net of cash         -      (2)    (185)      (2) 
acquired 
 
    Proceeds from sales of businesses, net          -        1        2        1 
of fees paid 
 
    Other                                          28     (74)    (150)     (13) 
 
Net cash used for investing activities        (1,625)    (860)  (2,545)  (1,205) 
 
Cash flows from financing activities: 
 
    Net increase (decrease) in commercial         100    (150)    1,148      950 
paper 
 
    Net (decrease) increase in short-term        (23)        4     (19)      (6) 
borrowings 
 
    Proceeds from issuance of common stock         47       69      125      161 
 
    Proceeds from issuance of long-term debt       11       20       14       45 
 
    Payments of long-term debt                   (22)      (4)     (57)    (606) 
 
    Excess tax benefits from share based            9       19       56       49 
payment arrangements 
 
    Repurchases of common stock                 (123)    (231)    (486)    (551) 
 
    Cash dividends paid                         (436)    (373)    (851)    (736) 
 
Net cash used for financing activities          (437)    (646)     (70)    (694) 
 
Effect of foreign exchange rate changes on         33       75    (219)       30 
cash and cash equivalents 
 
Net (decrease) increase in cash and cash        (621)     (90)  (1,005)      160 
equivalents 
 
Cash and cash equivalents at beginning of       6,575    6,672    6,959    6,422 
period 
 
Cash and cash equivalents at end of period        $        $          $  $ 6,582 
                                                5,954    6,582    5,954 
 
 
 
 
                         Honeywell International Inc. 
 
   Reconciliation of Cash Provided by Operating Activities to Free Cash Flow 
                                  (Unaudited) 
 
                             (Dollars in millions) 
 
                                                      Three Months Ended 
 
                                                           June 30, 
 
                                                    2015             2014 
 
Cash provided by operating activities          $         1,408  $         1,341 
 
Expenditures for property, plant and equipment           (243)            (229) 
 
Free cash flow                                 $         1,165  $         1,112 
 
 
 
We define free cash flow as cash provided by operating activities less cash 
expenditures for property, plant and equipment. 
 
We believe that this metric is useful to investors and management as a measure 
of cash generated by business operations that will be used to repay scheduled 
debt maturities and can be used to invest in future growth through new business 
development activities or acquisitions, and to pay dividends, repurchase stock, 
or repay debt obligations prior to their maturities. This metric can also be 
used to evaluate our ability to generate cash flow from business operations and 
the impact that this cash flow has on our liquidity. 
 
 
 
                         Honeywell International Inc. 
 
Reconciliation of Segment Profit to Operating Income and Calculation of Segment 
                Profit and Operating Income Margins (Unaudited) 
 
                             (Dollars in millions) 
 
                                 Three Months Ended         Six Months Ended 
 
                                      June 30,                  June 30, 
 
                                 2015          2014         2015        2014 
 
Segment Profit                  $               $             $           $ 
                                    1,803         1,709       3,524       3,305 
 
Stock compensation expense           (39)          (50)        (91)       (102) 
(A) 
 
Repositioning and other (A,         (137)         (128)       (276)       (348) 
B) 
 
Pension ongoing income (A)            103            64         203         125 
 
Other postretirement                 (11)          (13)        (20)        (25) 
expense (A) 
 
Operating Income                $               $             $           $ 
                                    1,719         1,582       3,340       2,955 
 
Segment Profit                  $               $             $           $ 
                                    1,803         1,709       3,524       3,305 
 
÷ Sales                         $                 $             $           $ 
                                    9,775        10,253      18,988      19,932 
 
Segment Profit Margin %             18.4%         16.7%       18.6%       16.6% 
 
Operating Income                $               $             $           $ 
                                    1,719         1,582       3,340       2,955 
 
÷ Sales                         $                 $             $           $ 
                                    9,775        10,253      18,988      19,932 
 
Operating Income Margin %           17.6%         15.4%       17.6%       14.8% 
 
 
 
 
(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, 
 
                                                                     2014 
 
Segment Profit                                                   $        6,696 
 
Stock compensation expense (A)                                            (187) 
 
Repositioning and other (A, B)                                            (634) 
 
Pension ongoing income (A)                                                  254 
 
Pension mark-to-market adjustment (A)                                     (249) 
 
Other postretirement expense (A)                                           (49) 
 
Operating Income                                                 $        5,831 
 
Pension mark-to-market adjustment (A)                                     (249) 
 
Operating Income excluding pension mark-to-market adjustment     $        6,080 
 
Segment Profit                                                   $        6,696 
 
÷ Sales                                                           $      40,306 
 
Segment Profit Margin %                                                   16.6% 
 
Operating Income                                                 $        5,831 
 
÷ Sales                                                           $      40,306 
 
Operating Income Margin %                                                 14.5% 
 
Operating Income excluding pension mark-to-market adjustment     $        6,080 
 
÷ Sales                                                           $      40,306 
 
Operating Income Margin excluding pension mark-to-market                  15.1% 
adjustment % 
 
 
 
 
(A) Included in cost of products and services sold and selling, general and 
administrative expenses. 
 
(B) Includes repositioning, asbestos, environmental expenses and equity income 
adjustment. 
 
We believe these measures are useful to investors and management in 
understanding our ongoing operations and in analysis of ongoing operating 
trends. 
 
 
 
                         Honeywell International Inc. 
 
               Calculation of EPS at 26.5% Tax Rate (Unaudited) 
 
                (Dollars in millions, except per share amounts) 
 
                                                          Three Months Ended 
 
                                                               June 30, 
 
                                                          2015         2014 
 
Income before taxes                                        $            $ 
                                                             1,662        1,523 
 
Taxes at 26.5%                                                 440          404 
 
Net income at 26.5% tax rate                                 1,222        1,119 
 
Less: Net income attributable to the noncontrolling             28           27 
interest 
 
Net income attributable to Honeywell at 26.5% tax          $            $ 
rate                                                         1,194        1,092 
 
Weighted average number of shares outstanding -              792.9        795.4 
assuming dilution 
 
EPS at 26.5% tax rate                                    $            $ 
                                                              1.51         1.37 
 
 
 
 
We believe EPS adjusted to expected full-year tax rate at 26.5% is a measure 
that is useful to investors and management in understanding our ongoing 
operations and in analysis of ongoing operating trends. 
 
 
 
                      Honeywell International Inc. 
 
         Reconciliation of Core Organic Sales Growth (Unaudited) 
 
                                                       Three Months Ended 
 
                                                            June 30, 
 
                                                              2015 
 
Honeywell 
 
Reported sales growth                                                (5%) 
 
Foreign currency, acquisitions, divestitures and other                 7% 
 
Raw Materials Pricing in R&C                                           1% 
 
Core organic sales growth                                              3% 
 
PMT 
 
Reported sales growth                                                (9%) 
 
Foreign currency, acquisitions, divestitures and other                 4% 
 
Raw Materials Pricing in R&C                                           4% 
 
Core organic sales growth                                            (1%) 
 
 
 
 
Throughout this press release, core organic sales growth refers to reported 
sales growth less the impacts from foreign currency movement, M&A and raw 
materials 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 
necessarily 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. 
 
 
 
                         Honeywell International Inc. 
 
   Reconciliation of Cash Provided by Operating Activities to Free Cash Flow 
                                  (Unaudited) 
 
                             (Dollars in millions) 
 
                                                            Twelve Months Ended 
 
                                                               December 31, 
 
                                                                   2014 
 
Cash provided by operating activities                              $      5,024 
 
Expenditures for property, plant and equipment                          (1,094) 
 
Free cash flow                                                     $      3,930 
 
 
 
 
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 Earnings Per Share to Earnings Per Share, Excluding Pension 
                     Mark-to-Market Adjustment (Unaudited) 
 
                                                                      Twelve 
                                                                      Months 
                                                                       Ended 
 
                                                                     December 
                                                                        31, 
 
                                                                       2014 
 
EPS                                                                   $ 
                                                                           5.33 
 
Pension mark-to-market adjustment                                          0.23 
 
EPS, excluding pension mark-to-market                                 $ 
adjustment                                                                 5.56 
 
 
 
 
We believe EPS, excluding pension mark-to-market adjustment is a measure that 
is useful to investors and management in understanding our ongoing operations 
and in analysis of ongoing operating trends. 
 
EPS utilizes weighted average shares outstanding - assuming dilution of 795.2 
million. Pension mark-to-market adjustment uses a blended tax rate of 28.1%. 
 
 
 
Contacts: 
 
Media                    Investor Relations 
 
Robert C. Ferris         Mark Macaluso 
 
(973) 455-3388           (973) 455-2222 
 
rob.ferris@honeywell.com mark.macaluso@honeywell.com 
 
 
 
 
 
 
END 
 

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