Honeywell Reports
First Quarter 2016 Sales Of $9.5
Billion; Earnings Up 9% To $1.53 Per Share
- Core Organic Sales Growth 1%*; Reported Up 3% Due to Sales From
Acquisitions
- Segment Margin Improvement of 20 bps Excluding the Impact of
M&A
- Repurchased Over $1 Billion of
Shares, Deployed ~$1 Billion to
Acquisitions
- Raising Low-End of 2016 EPS Guidance Range (Ex-Pension MTM) to
$6.55 - $6.70, Up 7% - 10%
MORRIS PLAINS, N.J.,
April 22, 2016 -- Honeywell (NYSE:
HON) today announced its results for the first quarter of
2016:
| Total Honeywell |
|
|
|
|
| ($ Millions, Except Earnings Per
Share) |
1Q 2015 |
1Q 2016 |
Change |
| Sales |
9,213 |
9,522 |
3% |
| Segment Margin |
18.7% |
18.1% |
(60) bps |
| Operating Income Margin |
17.6% |
17.8% |
20 bps |
| Earnings Per Share |
$1.41 |
$1.53 |
9% |
| Cash Flow from Operations |
421 |
257 |
(39%) |
| Free Cash Flow
(1) |
256 |
63 |
(75%) |
|
| (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 had a strong start to 2016, delivering on our sales
and earnings commitments in the first quarter," said Honeywell
Chairman and CEO, Dave Cote.
"Earnings per share increased 9% on continued execution across the
portfolio. Core organic sales were up 1%, above the high-end of our
guidance, driven by acceleration in Commercial Aftermarket and
Transportation Systems within Aerospace, continued growth in our
residential, commercial, and China
businesses within ACS, and higher sales in Process Solutions and
Fluorine Products in PMT. We announced and closed three
acquisitions within ACS and acquired the remaining 30% interest in
UOP Russell, which further strengthens our Great Positions in Good
Industries. We also opportunistically repurchased over $1 billion of shares during the quarter, and
funded approximately $40 million in
new restructuring projects. As a result of the first quarter
performance, we are raising the low-end of our full-year earnings
guidance range to $6.55-$6.70, up
7%-10%, and remain committed to our full-year core organic sales
growth and free cash flow outlook."
"Looking ahead, our message and our planning will not change. 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," concluded
Cote.
The company is updating its full-year 2016 guidance and now
expects:
| 2016 Full-Year Guidance |
|
|
|
|
|
|
|
|
Prior Guidance |
Revised
Guidance |
Change vs.
2015 |
| Sales |
$39.9 -
$40.9B |
$40.3 -
$40.9B |
4% - 6% |
| Core Organic Growth |
1% -2% |
1% -2% |
|
| Segment Margin |
18.9% - 19.3% |
18.9% - 19.3% |
10 - 50 bps
(2) |
| Operating Income Margin
(Ex-Pension MTM) |
18.0% - 18.4% |
18.0% - 18.4% |
10 - 50 bps
(3) |
|
|
|
|
| Earnings Per Share (Ex-Pension
MTM) |
$6.45 - $6.70 |
$6.55 - $6.70 |
7% - 10% |
|
|
|
|
| Free Cash Flow (1) |
$4.6 -
$4.8B |
$4.6 -
$4.8B |
5% - 10% |
|
| 1. Cash Flow from
Operations Less Capital Expenditures |
| 2. Segment Margin
ex-M&A Up 80 - 110 bps |
| 3. Operating Margin
ex-M&A Up 80 - 110 bps |
First quarter 2016 results by business segment are provided
below.
| Segment Performance |
| Aerospace |
|
|
|
|
|
|
|
|
|
|
| ($ Millions) |
1Q 2015 |
1Q 2016 |
% Change |
| Sales |
3,607 |
3,705 |
3% |
| Segment Profit |
752 |
798 |
6% |
| Segment Margin |
20.8% |
21.5% |
70 bps |
- Sales for the first quarter were up 3% on a reported and core
organic basis. Core organic sales growth was driven by higher
repair and overhaul activities, new platform launches and higher
global turbo penetration on passenger vehicles, and strong
shipments to Business and General Aviation (BGA) and Air Transport
and Regional (ATR) OEMs.
- Segment profit was up 6% and segment margin expanded 70 bps to
21.5%, driven by productivity net of inflation, and commercial
excellence, partially offset by continued investments for growth
including higher OEM incentives, and the dilutive impact of
acquisitions. Excluding the impact of acquisitions, segment margin
expanded 90 bps.
| Automation and Control
Solutions |
|
|
|
|
| ($ Millions) |
1Q 2015 |
1Q 2016 |
% Change |
| Sales |
3,264 |
3,677 |
13% |
| Segment Profit |
516 |
530 |
3% |
| Segment Margin |
15.8% |
14.4% |
(140) bps |
- Sales for the first quarter were up 4% on a core organic basis
and up 13% reported primarily driven by sales from the Elster
acquisition partially offset by the unfavorable impact of foreign
currency. Energy, Safety & Security (ESS) sales were flat on a
core organic basis (up 16% reported) driven by continued growth in
Security and Fire (HSF) on a global basis and further penetration
of High Growth Regions (HGR), particularly in China, offset by lower volume in Sensing &
Productivity Solutions (S&PS). Building Solutions &
Distribution (BSD) sales increased 11% on a core organic basis (up
5% reported) driven by continued strength in Americas Distribution
and growth in project installation and services in Building
Solutions (HBS).
- Segment profit was up 3% and segment margin contracted (140)
bps to 14.4% driven by the unfavorable impact of acquisitions.
Excluding the impact of acquisitions, segment margin expanded 10
bps driven by productivity, net of inflation, benefits of
previously funded restructuring projects, and commercial
excellence, partially offset by the unfavorable impact of project
installation, services, and distribution sales on margin, and
continued investments for growth.
| Performance Materials and
Technologies |
|
|
|
|
| ($ Millions) |
1Q 2015 |
1Q 2016 |
% Change |
| Sales |
2,342 |
2,140 |
(9%) |
| Segment Profit |
503 |
441 |
(12%) |
| Segment Margin |
21.5% |
20.6% |
(90) bps |
- Sales for the first quarter were down (8%) on a core organic
basis and down (9%) reported driven by the unfavorable impact of
foreign currency and lower raw materials pass-through pricing in
Resins & Chemicals, partially offset by the favorable impact of
acquisitions. The decrease in core organic sales was primarily
driven by lower UOP gas processing, catalyst, and equipment sales
as anticipated, partially offset by higher projects and services
sales in HPS and higher volume in Fluorine Products.
- Segment profit was down (12%) and segment margins contracted
(90) bps to 20.6%, driven by the unfavorable impact of lower UOP
catalyst shipments and acquisitions, partially offset by the
benefits of previously funded restructuring, commercial excellence,
and the impact of raw materials pass-through pricing in Resins
& Chemicals. Excluding the impact of acquisitions, segment
margin contracted (70) bps.
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) 879-6207 (domestic) or (719) 325-4942 (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 first quarter 2016 earnings call or
provide the conference code HON1Q16. 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, April 22, until
12:30 p.m. EDT, April 29, by dialing (888) 203-1112 (domestic) or
(719) 457-0820 (international). The access code is 3464694.
Honeywell (http://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 |
|
|
March 31, |
|
|
2016 |
|
2015 |
|
|
|
|
|
| Product sales |
$
7,619 |
|
$
7,364 |
| Service sales |
1,903 |
|
1,849 |
| Net sales |
9,522 |
|
9,213 |
|
|
|
|
|
| Costs, expenses and other |
|
|
|
| Cost of products
sold (A) |
5,349 |
|
5,213 |
| Cost of services
sold (A) |
1,198 |
|
1,149 |
|
|
6,547 |
|
6,362 |
| Selling, general
and administrative expenses (A) |
1,280 |
|
1,230 |
| Other (income)
expense |
(18) |
|
(20) |
| Interest and other
financial charges |
85 |
|
77 |
|
|
7,894 |
|
7,649 |
|
|
|
|
|
| Income before taxes |
1,628 |
|
1,564 |
| Tax expense |
432 |
|
418 |
|
|
|
|
|
| Net income |
1,196 |
|
1,146 |
|
|
|
|
|
| Less: Net income attributable to the
noncontrolling interest |
10 |
|
30 |
|
|
|
|
|
| Net income attributable to
Honeywell |
$
1,186 |
|
$
1,116 |
|
|
|
|
|
| Earnings per share of common stock -
basic |
$
1.54 |
|
$
1.42 |
|
|
|
|
|
| Earnings per share of common stock -
assuming dilution |
$
1.53 |
|
$
1.41 |
|
|
|
|
|
| Weighted average number of shares
outstanding - basic |
767.9 |
|
783.8 |
|
|
|
|
|
| Weighted average number of shares
outstanding - assuming dilution. |
776.9 |
|
794.0 |
|
|
|
|
|
| (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 |
|
|
|
|
March 31, |
|
|
| Net Sales |
2016 |
|
2015 |
|
|
|
|
|
|
|
|
|
| Aerospace |
$
3,705 |
|
$
3,607 |
|
|
|
|
|
|
|
|
|
| Automation and Control Solutions |
3,677 |
|
3,264 |
|
|
|
|
|
|
|
|
|
| Performance Materials and
Technologies |
2,140 |
|
2,342 |
|
|
|
|
|
|
|
|
|
| Total |
$
9,522 |
|
$
9,213 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation of
Segment Profit to Income Before Taxes |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
March 31, |
|
|
| Segment Profit |
2016 |
|
2015 |
|
|
|
|
|
|
|
|
|
| Aerospace |
$
798 |
|
$
752 |
|
|
|
|
|
|
|
|
|
| Automation and Control Solutions |
530 |
|
516 |
|
|
|
|
|
|
|
|
|
| Performance Materials and
Technologies |
441 |
|
503 |
|
|
|
|
|
|
|
|
|
| Corporate |
(49) |
|
(50) |
|
|
|
|
|
|
|
|
|
| Total segment
profit |
1,720 |
|
1,721 |
|
|
|
|
|
|
|
|
|
| Other income (A) |
12 |
|
12 |
|
|
| Interest and other financial
charges |
(85) |
|
(77) |
|
|
| Stock compensation expense (B) |
(53) |
|
(52) |
|
|
| Pension ongoing income (B) |
150 |
|
100 |
|
|
| Other postretirement income (expense)
(B) |
9 |
|
(9) |
|
|
| Repositioning and other charges
(B) |
(125) |
|
(131) |
|
|
|
|
|
|
|
|
|
| Income before taxes |
$
1,628 |
|
$
1,564 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (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) |
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
|
|
2016 |
|
2015 |
| ASSETS |
|
|
|
|
|
| Current assets: |
|
|
|
|
| Cash and cash
equivalents |
|
$
4,473 |
|
$
5,455 |
| Accounts, notes and
other receivables |
|
8,397 |
|
8,075 |
| Inventories |
|
4,743 |
|
4,420 |
| Investments and
other current assets |
|
1,919 |
|
2,103 |
|
Total current assets |
|
19,532 |
|
20,053 |
|
|
|
|
|
|
| Investments and long-term
receivables |
|
592 |
|
517 |
| Property, plant and equipment -
net |
|
6,027 |
|
5,789 |
| Goodwill |
|
16,708 |
|
15,895 |
| Other intangible assets - net |
|
4,706 |
|
4,577 |
| Insurance recoveries for asbestos
related liabilities |
|
431 |
|
426 |
| Deferred income taxes |
|
318 |
|
283 |
| Other assets |
|
2,051 |
|
1,776 |
|
|
|
|
|
|
|
Total assets |
|
$ 50,365 |
|
$ 49,316 |
|
|
|
|
|
|
| LIABILITIES AND SHAREOWNERS'
EQUITY |
|
|
|
|
| Current liabilities: |
|
|
|
|
| Accounts
payable |
|
$
5,511 |
|
$
5,580 |
| Commercial paper
and other short-term borrowings |
|
3,631 |
|
5,937 |
| Current maturities
of long-term debt |
|
626 |
|
577 |
| Accrued
liabilities |
|
5,891 |
|
6,277 |
|
Total current liabilities |
|
15,659 |
|
18,371 |
|
|
|
|
|
|
| Long-term debt |
|
9,700 |
|
5,554 |
| Deferred income taxes |
|
626 |
|
558 |
| Postretirement benefit obligations
other than pensions |
|
506 |
|
526 |
| Asbestos related liabilities |
|
1,252 |
|
1,251 |
| Other liabilities |
|
4,247 |
|
4,348 |
| Redeemable noncontrolling
interest |
|
3 |
|
290 |
| Shareowners' equity |
|
18,372 |
|
18,418 |
|
|
|
|
|
|
|
Total liabilities, redeemable
noncontrolling interest and shareowners' equity |
|
$
50,365 |
|
$ 49,316 |
| Honeywell
International Inc. |
| Consolidated
Statement of Cash Flows (Unaudited) |
| (Dollars in
millions) |
|
|
|
|
|
|
|
Three Months Ended |
|
|
March 31, |
|
|
2016 |
|
2015 |
| Cash flows from operating
activities: |
|
|
|
|
| Net income |
|
$
1,196 |
|
$ 1,146 |
| Less: Net income
attributable to the noncontrolling interest |
|
10 |
|
30 |
| Net income
attributable to Honeywell |
|
1,186 |
|
1,116 |
| Adjustments to
reconcile net income attributable to Honeywell to net |
|
|
|
|
| cash provided by
operating activities: |
|
|
|
|
|
Depreciation |
|
179 |
|
163 |
|
Amortization |
|
74 |
|
53 |
|
Repositioning and other
charges |
|
125 |
|
131 |
|
Net payments for
repositioning and other charges |
|
(134) |
|
(100) |
|
Pension and other
postretirement income |
|
(159) |
|
(91) |
|
Pension and other
postretirement benefit payments |
|
(38) |
|
(9) |
|
Stock compensation
expense |
|
53 |
|
52 |
|
Deferred income
taxes |
|
48 |
|
93 |
|
Excess tax benefits from
share based payment arrangements |
|
(30) |
|
(47) |
|
Other |
|
86 |
|
(102) |
|
Changes in assets and
liabilities, net of the effects of |
|
|
|
|
|
acquisitions and
divestitures: |
|
|
|
|
|
Accounts, notes and other receivables |
|
(203) |
|
(170) |
|
Inventories |
|
(241) |
|
(86) |
|
Other
current assets |
|
(59) |
|
58 |
|
Accounts payable |
|
(113) |
|
(112) |
|
Accrued liabilities |
|
(517) |
|
(528) |
| Net cash provided by operating
activities |
|
257 |
|
421 |
|
|
|
|
|
| Cash flows from investing
activities: |
|
|
|
|
| Expenditures for
property, plant and equipment |
|
(194) |
|
(165) |
| Proceeds from
disposals of property, plant and equipment |
|
1 |
|
1 |
| Increase in
investments |
|
(836) |
|
(1,501) |
| Decrease in
investments |
|
880 |
|
1,106 |
| Cash paid for
acquisitions, net of cash acquired |
|
(1,056) |
|
(185) |
| Proceeds from sales
of businesses, net of fees paid |
|
- |
|
2 |
| Other |
|
9 |
|
(178) |
| Net cash used for investing
activities |
|
(1,196) |
|
(920) |
|
|
|
|
|
| Cash flows from financing
activities: |
|
|
|
|
| Net (decrease)
increase in commercial paper and other short-term borrowings |
|
(2,450) |
|
1,052 |
| Proceeds from
issuance of common stock |
|
105 |
|
78 |
| Proceeds from
issuance of long-term debt |
|
4,448 |
|
3 |
| Payments of
long-term debt |
|
(419) |
|
(35) |
| Excess tax benefits
from share based payment arrangements |
|
30 |
|
47 |
| Repurchases of
common stock |
|
(1,156) |
|
(363) |
| Cash dividends
paid |
|
(499) |
|
(415) |
| Payments to
purchase the noncontrolling interest |
|
(238) |
|
- |
| Other |
|
18 |
|
- |
| Net cash (used for) provided by
financing activities |
|
(161) |
|
367 |
|
|
|
|
|
| Effect of foreign exchange rate
changes on cash and cash equivalents |
|
118 |
|
(252) |
| Net decrease in cash and cash
equivalents |
|
(982) |
|
(384) |
| Cash and cash equivalents at beginning
of period |
|
5,455 |
|
6,959 |
| Cash and cash equivalents at end of
period |
|
$
4,473 |
|
$ 6,575 |
| Honeywell
International Inc. |
|
| Reconciliation of Cash
Provided by Operating Activities to Free Cash Flow (Unaudited) |
|
| (Dollars in
millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Twelve Months
Ended |
|
|
March 31, |
|
December 31, |
|
|
2016 |
|
2015 |
|
2015 |
|
|
|
|
|
|
|
|
|
|
| Cash provided by operating activities |
|
$
257 |
|
$
421 |
|
$
5,454 |
|
| Expenditures for property, plant
and equipment |
|
(194) |
|
(165) |
|
(1,073) |
|
| Free cash flow |
|
$
63 |
|
$
256 |
|
$
4,381 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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 |
|
|
|
March 31, |
|
|
|
2016 |
|
2015 |
|
|
|
|
|
|
|
| Segment Profit |
|
$
1,720 |
|
$
1,721 |
|
|
|
|
|
|
|
| Stock compensation expense (A) |
|
(53) |
|
(52) |
|
| Repositioning and other (A, B) |
|
(131) |
|
(139) |
|
| Pension ongoing income (A) |
|
150 |
|
100 |
|
| Other postretirement income
(expense) (A) |
|
9 |
|
(9) |
|
| Operating Income |
|
$
1,695 |
|
$
1,621 |
|
|
|
|
|
|
|
| Segment Profit |
|
$
1,720 |
|
$
1,721 |
|
| ÷ Sales |
|
$
9,522 |
|
$
9,213 |
|
| Segment Profit Margin % |
|
18.1% |
|
18.7% |
|
|
|
|
|
|
|
| Segment Profit excluding mergers and
acquisitions |
|
$
1,705 |
|
|
|
| ÷ Sales excluding mergers and acquisitions |
|
$
9,043 |
|
|
|
| Segment Profit Margin excluding mergers and
acquisitions % |
|
18.9% |
|
|
|
|
|
|
|
|
|
| Operating Income |
|
$
1,695 |
|
$
1,621 |
|
| ÷ Sales |
|
$
9,522 |
|
$
9,213 |
|
| Operating Income Margin % |
|
17.8% |
|
17.6% |
|
|
|
|
|
|
|
(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 Segment
Profit Margin Excluding Mergers and Acquisitions (Unaudited) |
|
| (Dollars in
millions) |
|
|
|
|
|
|
|
Three Months Ended |
|
|
March 31, |
|
|
|
2016 |
|
|
| Aerospace |
|
|
|
|
| Segment Profit excluding mergers and
acquisitions |
|
$ 801 |
|
|
| ÷ Sales excluding mergers and
acquisitions |
|
$ 3,685 |
|
|
| Segment Profit Margin excluding
mergers and acquisitions % |
|
21.7% |
|
|
|
|
|
|
|
| Automation and Control
Solutions |
|
|
|
|
| Segment Profit excluding mergers and
acquisitions |
|
$ 522 |
|
|
| ÷ Sales excluding mergers and
acquisitions |
|
$ 3,290 |
|
|
| Segment Profit Margin excluding
mergers and acquisitions % |
|
15.9% |
|
|
|
|
|
|
|
| Performance Materials and
Technologies |
|
|
|
|
| Segment Profit excluding mergers and
acquisitions |
|
$ 431 |
|
|
| ÷ Sales excluding mergers and
acquisitions |
|
$ 2,068 |
|
|
| Segment Profit Margin excluding
mergers and acquisitions % |
|
20.8% |
|
|
|
|
|
|
|
|
|
|
|
|
| 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 |
|
|
March
31, |
|
|
2016 |
|
| Honeywell |
|
|
| Reported sales
growth |
3% |
|
| Less: Foreign currency
translation, acquisitions, divestitures and other |
3% |
|
| Less: Raw materials
pricing in R&C |
(1%) |
|
|
|
|
| Core organic sales
growth |
1% |
|
|
|
|
| Performance
Materials and Technologies |
|
|
| Reported sales
growth |
(9%) |
|
| Less: Foreign currency
translation, acquisitions, divestitures and other |
1% |
|
| Less: Raw materials
pricing in R&C |
(2%) |
|
|
|
|
| Core organic sales
growth |
(8%) |
|
|
|
|
|
|
|
|
|
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. |
|
|
|
|
|
|
|
|
|
| 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 |
| (Unaudited) |
|
|
|
|
|
Twelve Months
Ended |
|
December 31, |
|
|
2015 |
|
|
|
|
|
| EPS |
|
$
6.04 |
|
|
|
|
|
| Pension mark-to-market adjustment (A) |
|
0.06 |
|
|
|
|
|
| EPS, excluding pension mark-to-market
adjustment |
|
$
6.10 |
|
|
|
|
|
|
|
|
|
| (A) - Utilizes weighted average shares
of 789.3 million. Mark-to-market uses a blended tax rate of
36.1%. |
|
|
|
|
|
| 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. |
|
|