Honeywell To Discuss Performance Track Record And Progress On 5 Year Plan At Annual Investor Conference

-- Reaffirming 1Q And Full-Year 2013 Outlook

-- On Track To Achieve 2014 Targets Despite Slow Global Economic Growth Outlook

-- Great Positions In Good Industries Contributing To Growth And Margin Expansion

-- Continued Robust Cash Flow Generation Provides Flexibility To Deliver Value

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Mar 06, 2013, 08:00 ET

MORRIS TOWNSHIP, N.J., March 6, 2013 /PRNewswire/ -- Honeywell (NYSE: HON) will hold its annual investor conference in New York City today to discuss its innovation, execution and commitment to continued outperformance led by its disciplined operating principles that will drive continued sales and earnings growth, margin expansion and robust cash generation over the long-term.

"Our business model is working," said Honeywell Chairman and CEO Dave Cote. "Our One Honeywell performance culture is now pervasive and is being applied across our terrific portfolio with a relentless focus on improving our internal processes, driving productivity and sustainable growth. Today we're achieving top-tier performance with a differentiated and balanced mix of long- and short-cycle businesses, a robust pipeline of new products, and geographic expansion. The Honeywell Operating System, Functional Transformation, Organizational Effectiveness, and Velocity Product Development™, will continue to be long-term differentiators for the company and meaningful contributors to achieving our 2014 sales and segment margin targets set in 2010."

"The 'Diversity of Opportunity' at Honeywell will continue to position the company for growth over the long-term," continued Cote. "While we anticipate another slow growth macro environment in 2013, Honeywell's Great Positions in Good Industries, links to key macro trends like safety, security, energy, and productivity, and more global positioning will help us achieve our sales, margins, earnings and free cash flow targets for the year. We'll deliver on these results while continuing to invest in our future."

"Honeywell will continue to fund smart seed planting investments, including disciplined acquisitions, high growth region expansion, differentiated technologies and increased capacity to deliver on business we've already won," continued Cote. "We also intend to return cash to shareowners through opportunistic buy-backs and increased dividends."

"We're not even at the halfway point yet, and there's a lot of runway in front of us," concluded Cote. "The more we do, the more opportunity that we uncover. The best is certainly yet to come for Honeywell."

The company reaffirms its 1Q and full-year 2013 sales and proforma EPS¹ guidance:

1Q13 Guidance
	1Q13	Change
	Current Guidance	vs. 2012
Sales	$9.3 - $9.5B	0 - 2%
Earnings Per Share	$1.10 - $1.15	6 - 11%

Full Year Guidance
	2013	Change
	Current Guidance	vs. 2012
Sales	$39.0 - $39.5B	4 - 5%
Segment Margin	15.8 - 16.1%	20 - 50 bps
Operating Income Margin¹	14.2 - 14.5%	60 - 90 bps
Earnings Per Share¹	$4.75 - $4.95	6 - 11%
Free Cash Flow²	~$3.7B	~Flat
1. Proforma, V% / bps Exclude Any Pension Mark-to-Market Adjustment
2. Free Cash Flow (Cash Flow from Operations Less Capital Expenditures) Prior to Any NARCO Related Payments and Cash Pension Contributions

Related presentation materials and webcast information for the Honeywell annual investor conference are available at www.honeywell.com/investor prior to the investor meeting. A replay of the webcast will be available following the presentation at the same link listed above for 30 days.

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; automotive products; turbochargers; and performance materials. Based in Morris Township, N.J., Honeywell's shares are traded on the New York, London, and Chicago Stock Exchanges. 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.

Reconciliation of Segment Profit to Operating Income Excluding Pension Mark-to-Market Adjustment and Calculation of Segment Profit and Operating Income Margin Excluding Pension Mark-to-Market Adjustment
(Dollars in billions)

	Twelve Months Ended
	December 31, 2012

Segment Profit	$5.9

Stock compensation expense (A)	(0.2)
Repositioning and other (A, B)	(0.5)
Pension ongoing expense (A)	0.0
Pension mark-to-market adjustment (A)	(1.0)
Other postretirement income/(expense) (A)	(0.1)

Operating Income	$4.2
Pension mark-to-market adjustment (A)	($1.0)
Operating Income excluding pension mark-to-market adjustment	$5.1

Segment Profit	$5.9
÷ Sales	$37.7
Segment Profit Margin %	15.6%

Operating Income	$4.2
÷ Sales	$37.7
Operating Income Margin %	11.0%

Operating Income excluding pension mark-to-market adjustment	$5.1
÷ Sales	$37.7
Operating Income Margin excluding pension mark-to-market adjustment %	13.6%

(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.
Reconciliation of EPS to EPS, Excluding Pension Mark-to-Market Adjustment

	Twelve Months Ended
	December 31, 2012

EPS	$3.69
Pension Mark-To-Market Adjustment (1)	0.79
EPS, Excluding Pension Mark-to-Market Adjustment	$4.48

(1) Utilizes weighted average shares outstanding and the effective tax rate for the period. Mark-to-market uses a blended tax rate of 35.0% for 2012.

We believe this measure 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, Prior to Cash Pension Contributions
(Dollars in billions)

	Twelve Months Ended
	December 31, 2012

Cash provided by operating activities	$3.5

Expenditures for property, plant and equipment	(0.9)

Free cash flow	$2.6

Cash pension contributions	1.1

Free cash flow, prior to cash pension contributions	$3.7

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, repay debt obligations prior to their maturities, or make cash pension contributions. 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.