New Civil Helicopter Deliveries Expected to Reach 3,750-4,250 Between 2010 and 2014

New Helicopter Purchase Plans Continue to Reflect Cautious Buying Stance

Middle East and Latin America Post Increased Purchase Plans

Light Single and Twin Engine Models Remain Most Popular

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Feb 25, 2010, 05:20 ET

PHOENIX, Feb. 25 /PRNewswire-FirstCall/ -- Honeywell (NYSE: HON) announced today that its 12th Turbine-Powered Civil Helicopter Purchase Outlook projects flat overall deliveries of new civil use helicopters during the five-year period 2010 – 2014 compared to the 2005 - 2009 period. Continued soft economic growth prospects in key markets, lingering tight credit conditions, high inventories of used current production models for sale, and weak new order intake are still constraining growth.

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New OEM order intake remained weak throughout 2009; however, utilization of turbine-powered helicopters has begun to rise in the past few months. On an upbeat note, European usage rates moved into positive territory in November and December and the inventory growth of current production helicopters for sale has stabilized since July 2009. Deliveries in 2009 fell below peak 2008 levels and are expected to decline further in 2010 and 2011 as backlogs depleted over the last year will not support sustained deliveries until order rates significantly recover.

Five year purchase plans fell eight percent in 2010, after declining over 20 percent last year. The timing of new helicopter purchase plans indicates fairly firm plans for 2010, but exhibited considerable uncertainty thereafter with a notable decline in 2011-2012. Many operators surveyed said they remain undecided about the specific timing for their next new purchase, waiting for clearer signals of sustained economic recovery in their business or region. Honeywell's 2009 survey data indicated a reduction in demand for new helicopters was likely during the 2009-2011 period. Actual industry performance in 2009 was weak and relatively consistent with survey projections. 2010 survey findings continue to indicate additional pressure on delivery rates is likely for the next one-to-two years absent a rapid recovery in order intake. Five-year new helicopter purchase expectations fell another 26 percent in North America and by 40 percent in Europe, which was relatively stable last year. In Latin America, purchase expectations were up significantly, increasing over 100 percent from sharply lower levels posted in 2009. Asia results declined modestly by about 10 percent over a year ago, and in Africa/Middle East purchase plans rose by 17 percent.