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HON · Honeywell International

30 filings

10-K

HON 10-K Annual Reports

Honeywell International - 30 annual reports

Filing record · 2016–202610-K1110-Q348-K196

2025
Honeywell International Annual Report, Year Ended Dec 31, 2025
Honeywell International Inc. reported a solid performance in 2025, driven by broad-based growth across its business segments and strategic portfolio actions. The company achieved an 8% increase in sales, reaching $37.4 billion, with its Aerospace Technologies segment delivering a third consecutive year of double-digit growth. Honeywell's strategic focus on portfolio optimization was evident through the spin-off of its Advanced Materials business and the acquisition of Sundyne. The company also announced its intent to separate its Aerospace Technologies business into an independent entity, a move expected to be completed in the third quarter of 2026. Financially, Honeywell demonstrated strong operational cash flow generation and continued its commitment to capital deployment through share repurchases and dividend increases. The company's robust backlog of $37.5 billion provides a strong foundation for future growth. Despite macroeconomic headwinds such as inflation and supply chain disruptions, Honeywell's mitigation strategies proved effective, allowing it to navigate these challenges while focusing on long-term shareowner value.
Feb 17, 2026
2024
Honeywell International Annual Report, Year Ended Dec 31, 2024
Honeywell International Inc. reported a strong fiscal year 2024, with net sales increasing by 5% to $38.5 billion, driven by robust performance in three of its four segments, particularly Aerospace Technologies which saw double-digit growth. The company demonstrated a commitment to portfolio transformation through significant capital deployment, including four acquisitions totaling $9 billion and strategic divestitures of non-core businesses. Key acquisitions like Carrier Global Corporation's Global Access Solutions, CAES Systems Holdings LLC, and Air Products' LNG business are expected to bolster growth in their respective segments. Looking ahead, Honeywell announced significant strategic moves, including the planned spin-off of its Advanced Materials business and the separation of its Automation and Aerospace Technologies businesses into independent, publicly traded companies. These actions aim to create three distinct industry-leading entities focused on core strengths. The company also highlighted a robust backlog of $35.3 billion as of December 31, 2024, providing a strong foundation for future growth and continued capital deployment, including opportunistic share repurchases and dividend increases.
Feb 14, 2025
2023
Honeywell International Annual Report, Year Ended Dec 31, 2023
Honeywell International Inc. reported strong performance in 2023, driven by its Honeywell Accelerator operating model and strategic alignment with key megatrends: automation, the future of aviation, and the energy transition. The company achieved sales growth of 3% to $36.7 billion, with notable strength in Commercial Aviation, Defense and Space, and Process Solutions. Capital deployment remained robust, with $8.3 billion allocated to capital expenditures, dividends, and share repurchases, reflecting a continued commitment to shareholder returns through a 5% dividend increase and opportunistic share buybacks. Looking ahead, Honeywell maintains a solid foundation with a backlog of $31.8 billion, positioning it well for continued growth. The company announced a significant acquisition of Carrier Global Corporation's Global Access Solutions business, further bolstering its portfolio. Honeywell is also preparing for a business segment realignment in early 2024 to better align with its strategic focus areas, creating new segments like Industrial Automation and Energy and Sustainability Solutions. Despite navigating macroeconomic challenges and supply chain constraints, Honeywell's mitigation strategies and diversified business segments demonstrate resilience.
Feb 16, 2024
2022
Honeywell International Annual Report, Year Ended Dec 31, 2022
Honeywell International Inc. reported solid performance in 2022, navigating macroeconomic challenges like supply chain disruptions and inflation through strategic pricing and operational adjustments. The company achieved a 3% reported sales growth (6% organically), reaching $35.5 billion in backlog, which bodes well for future revenue conversion. Key strategic objectives include driving profitable growth through innovation, expanding its software-industrial capabilities with Honeywell Forge, and optimizing operational performance. The company demonstrated financial discipline by deploying $7.9 billion in capital towards expenditures, dividends, and share repurchases, exceeding operating cash flow. Looking ahead, Honeywell anticipates continued market turbulence but remains confident in its robust backlog and diversified business segments to deliver future growth, with a focus on high-return opportunities in software and sustainable technologies.
Feb 10, 2023
2021
Honeywell International Annual Report, Year Ended Dec 31, 2021
Honeywell International Inc. reported a solid financial performance for the fiscal year ending December 31, 2021, with net sales increasing by 5% to $34.4 billion, driven by strong demand across key segments like Warehouse and Workflow Solutions, Productivity Solutions and Services, Advanced Materials, and Commercial Aviation. The company successfully navigated challenges posed by the COVID-19 pandemic, demonstrating resilience and market share growth. Honeywell emphasized its commitment to strategic growth through portfolio optimization, innovation, and Environmental, Social, and Governance (ESG) objectives. The company completed four acquisitions and invested significantly in capital expenditures, dividends, and share repurchases, totaling $8.2 billion, exceeding operating cash flow by $2.2 billion. Looking ahead, Honeywell plans to continue deploying capital towards high-return opportunities, particularly in software and services with recurring revenue streams and sustainable technologies, supported by a robust backlog of $27.7 billion.
Feb 11, 2022
2020
Honeywell International Annual Report, Year Ended Dec 31, 2020
Honeywell International Inc. reported a challenging but resilient fiscal year 2020, with net sales of $32.6 billion, a decrease of 11% year-over-year, primarily impacted by the global recession and volatility in the oil and gas industry due to COVID-19. Despite the downturn, the company demonstrated strong execution by reducing costs, securing liquidity, and strategically investing in growth areas. Notably, the Aerospace segment saw an 18% decline in sales, while Performance Materials and Technologies also experienced a 13% drop. Conversely, the Safety and Productivity Solutions segment grew by 6%, driven by increased demand for Personal Protective Equipment (PPE) and warehouse automation solutions. The company maintained its commitment to shareholder value by deploying $7.5 billion in capital expenditures, dividends, and share repurchases, and ended the year with a strengthened cash position of $15.2 billion. Looking ahead, Honeywell is focused on leveraging its software-industrial strategy, particularly its Honeywell Forge solutions, to drive growth in recurring revenue streams. The company ended 2020 with a substantial backlog of $26.4 billion, indicating robust demand for its key offerings. Management expressed confidence in the company's ability to navigate economic uncertainties and capitalize on opportunities for future growth, emphasizing innovation, operational efficiency, and disciplined portfolio management.
Feb 12, 2021
2019
Honeywell International Annual Report, Year Ended Dec 31, 2019
Honeywell International Inc. reported its financial results for the fiscal year ended December 31, 2019. The company experienced a net sales decrease of 12% year-over-year, primarily due to the spin-offs of its Transportation Systems and Homes and Global Distribution businesses in 2018. Excluding these divestitures, sales grew by 4%. Net income attributable to Honeywell decreased by 9% to $6.143 billion, with diluted EPS falling to $8.41 from $8.98 in the prior year. This decline was attributed to the absence of profits from the spun-off entities and higher income tax expenses, partially offset by improved operational segment profits. The company's strategic focus remains on becoming a leading software-industrial company, emphasizing growth through innovation, expansion in high-growth regions, and the development of its Honeywell Forge connected solutions. Honeywell continues to optimize its cost structure through operational improvements and aims for disciplined M&A to drive growth. The company deployed $7.8 billion in capital during 2019, including significant share repurchases and dividend payments, reflecting a commitment to shareholder value.
Feb 14, 2020
2018
Honeywell International Annual Report, Year Ended Dec 31, 2018
Honeywell International Inc. reported solid financial performance for the fiscal year ending December 30, 2018, with net sales of $41.8 billion, a 3% increase year-over-year. The company highlighted strong operational improvements contributing to a 8% increase in income before taxes. This growth was underpinned by the rigorous deployment of the Honeywell Operating System and investments in productivity initiatives, alongside a strategic focus on becoming a leading software-industrial company. Significant strategic moves during the year included the spin-off of its Transportation Systems business and its Homes and Global Distribution business. Honeywell also continued its commitment to shareholder returns, deploying $7.6 billion in capital, including $2.3 billion in dividends (a 10% increase year-over-year) and $4.0 billion in share repurchases. The company's robust capital deployment strategy and focus on high-growth, high-margin businesses position it for continued value creation.
Feb 8, 2019
2017
Honeywell International Annual Report, Year Ended Dec 31, 2017
Honeywell International Inc. reported net sales of $40.53 billion for the fiscal year ended December 31, 2017, a 3% increase from the prior year, driven by organic sales growth and operational improvements. Net income attributable to Honeywell was $1.66 billion, a significant decrease from $4.81 billion in 2016, largely impacted by a provisional charge of approximately $3.8 billion related to the U.S. Tax Cuts and Jobs Act. The company continued its strategy of portfolio review and capital deployment, announcing its intent to spin off its Homes and Global Distribution business and its Transportation Systems business into two separate publicly-traded companies. Key financial activities in 2017 included deploying over $6 billion in capital, with $2.9 billion allocated to share repurchases and $2.1 billion for dividends, which saw a 12% increase in the annual rate. Capital expenditures totaled over $1 billion, focused on high-return projects. The company's diversified business segments—Aerospace, Home and Building Technologies, Performance Materials and Technologies, and Safety and Productivity Solutions—all contributed to overall performance, with Aerospace and Home and Building Technologies showing sales growth.
Feb 9, 2018
2016
Honeywell International Annual Report, Year Ended Dec 31, 2016
Honeywell International Inc. reported solid financial performance for the fiscal year ending December 30, 2016, navigating a challenging macroeconomic environment. Net sales increased by 2% to $39.3 billion, with net income attributable to Honeywell rising 1% to $4.8 billion. Diluted earnings per share (EPS) saw a 3% increase to $6.20. The company successfully executed strategic initiatives including cost reduction, capital deployment, and portfolio optimization through acquisitions and divestitures, notably the sale of Honeywell Technology Solutions Inc. and the spin-off of AdvanSix. Honeywell also realigned its reporting segments and completed leadership transitions in key areas, reinforcing its focus on becoming a software-industrial company. Significant capital was deployed towards acquisitions, dividends, share repurchases, and capital investments in growth-oriented facilities, underscoring a commitment to shareholder value enhancement. Looking ahead, Honeywell is focused on executing its leadership transition, driving profitable organic growth through innovation and high-growth region expansion, and further embedding software capabilities across its product and service offerings. The company also continues to manage its cost structure for margin expansion and maintain disciplined capital deployment, balancing investments in core businesses, strategic acquisitions, share repurchases, and dividends.
Feb 10, 2017
2015
Honeywell International Annual Report, Year Ended Dec 31, 2015
Honeywell International Inc. reported strong financial performance in 2015, with diluted Earnings Per Share (EPS) growing 13% to $6.04 and net income attributable to Honeywell increasing 12% to $4,768 million. This growth was achieved despite a challenging macroeconomic environment, driven by strategic deployment of capital, which included over $5 billion in acquisitions focused on technology and alignment with global trends like energy efficiency and security. The company also returned significant capital to shareholders through a 15% dividend increase and share repurchases aimed at offsetting dilution. Operationally, Honeywell saw segment margin expansion and maintained its commitment to R&D, investing 5% of sales. Productivity initiatives, including the Honeywell Operating System (HOS) Gold and Honeywell User Experience (HUE), were intensified to drive efficiency across manufacturing, supply chain, and operations. The company's diversified business segments—Aerospace, Automation and Control Solutions (ACS), and Performance Materials and Technologies (PMT)—collectively contributed to the positive results, with Aerospace showing growth in commercial original equipment and aftermarket, ACS benefiting from security and sensing solutions, and PMT navigating market shifts. Looking ahead, Honeywell highlighted its focus on profitable growth, margin expansion through operational improvements, strong cash flow generation, and disciplined M&A. The company is well-positioned with a stable outlook and credit ratings, supported by its strong liquidity and diverse end-market exposure.
Feb 12, 2016
2014
Honeywell International Annual Report, Year Ended Dec 31, 2014
Honeywell International Inc. reported strong performance in 2014, with revenues reaching $40.3 billion, a 3% increase from the previous year. The company demonstrated effective operational excellence, with segment profit growing by 5%, outpacing revenue growth. This was driven by strategic reinvestments in research and development (R&D), capital expenditures for facility expansion, and a focus on high-growth regions. Honeywell also continued its portfolio management strategy, divesting non-core assets like the Friction Materials business while actively pursuing strategic acquisitions, such as the planned acquisition of Datamax-O’Neil. The company's financial health remained robust, with operating cash flow increasing by 16% to $5,024 million. This strong cash generation enabled significant returns to shareholders, including a 15% increase in dividends and substantial share repurchases. Honeywell maintained a stable credit rating outlook, underscoring its sound financial management and ability to fund its strategic initiatives.
Feb 13, 2015
2013
Honeywell International Annual Report, Year Ended Dec 31, 2013
Honeywell International Inc.'s 2013 10-K filing reveals a robust year with a 4% increase in revenue to $39.1 billion, driven by strong performance across its diversified business segments. The company demonstrated effective operational excellence, with segment profit growing 8%, outpacing revenue growth. This profitability was supported by the "Honeywell Enablers" – the Honeywell Operating System (HOS), Velocity Product Development (VPD), and Functional Transformation (FT) – which drive efficiency and cost-effectiveness. Key strategic initiatives in 2013 included significant investments in Research and Development (R&D) at 4.6% of revenue, focusing on high-growth areas, and capital expenditures of $947 million. The company also completed strategic acquisitions, notably Intermec, Inc. and RAE Systems, Inc., enhancing its capabilities in mobile computing and detection systems, while also actively divesting non-core assets. Honeywell generated strong operating cash flow, enabling increased capital expenditures, acquisitions, a 10% dividend increase, and significant share repurchases, underscoring a commitment to returning value to shareholders.
Feb 14, 2014
2012
Honeywell International Annual Report, Year Ended Dec 31, 2012
Honeywell International Inc. reported robust performance in 2012, marked by a 3% increase in revenue to $37.7 billion, despite a challenging global economic environment. The company demonstrated strong operational excellence, with segment profit growing by 10%, significantly outpacing revenue growth. This was attributed to the effective implementation of "Honeywell Enablers" such as the Honeywell Operating System (HOS) and Velocity Product Development (VPD). Key strategic initiatives for 2013 include driving profitable growth through innovation and R&D, expanding margins via process improvements, proactive cost management, and increasing market penetration in high-growth regions. Honeywell's financial health remains solid, evidenced by a 24% increase in operating cash flow to $3.5 billion, enabling investments in capital expenditures, acquisitions, dividends, and share repurchases. The company's diversified business segments—Aerospace, Automation and Control Solutions, Performance Materials and Technologies, and Transportation Systems—each contributed to the overall growth, with particular strength noted in commercial aerospace aftermarket and process solutions within Automation and Control Solutions.
Feb 15, 2013
2011
Honeywell International Annual Report, Year Ended Dec 31, 2011
Honeywell International Inc. reported a strong performance for the fiscal year ending December 31, 2011, with net sales increasing by 13% to $36.5 billion. This growth was driven by volume, price improvements, acquisitions, and favorable foreign exchange. The company's diversified business model across Aerospace, Automation and Control Solutions, Performance Materials and Technologies, and Transportation Systems contributed to this robust top-line expansion. Profitability saw a significant increase in segment profit, up 19% year-over-year to $5.4 billion, reflecting effective cost management, productivity gains, and the positive impact of acquisitions. While the company faced increased pension and other post-retirement expenses, it successfully navigated these challenges through operational improvements. Honeywell also demonstrated a commitment to shareholder returns, repurchasing $1.1 billion of its common stock during the year. The company's financial position remained solid, with significant cash flow generation and a clear focus on driving profitable growth and optimizing its business portfolio in the year ahead.
Feb 17, 2012
2010
Honeywell International Annual Report, Year Ended Dec 31, 2010
Honeywell International Inc. reported robust financial performance for the fiscal year ended December 31, 2010. The company demonstrated resilience and growth, with net sales increasing by 8% to $33.37 billion, driven by strong performance across most segments, particularly Automation and Control Solutions and Transportation Systems. Net income attributable to Honeywell saw a significant increase to $2.02 billion, or $2.59 per diluted share, up from $1.55 billion, or $2.05 per diluted share, in the prior year. Key drivers for the improved profitability included organic growth, effective cost management, and the benefits of strategic acquisitions. The company's diverse business segments—Aerospace, Automation and Control Solutions, Specialty Materials, and Transportation Systems—collectively contributed to this positive result. Management highlighted a focus on driving profitable growth through innovation, global expansion, and operational efficiency. Despite facing economic uncertainties and raw material price volatility, Honeywell maintained a strong liquidity position and continued to invest in its businesses, signaling confidence in its future prospects.
Feb 11, 2011
2009
Honeywell International Annual Report, Year Ended Dec 31, 2009
Honeywell International Inc. reported significant net sales of $30.9 billion for the year ended December 31, 2009. The company experienced a 15% year-over-year decline in sales, largely attributed to challenging global economic conditions affecting demand across its key segments, particularly Aerospace and Transportation Systems. Despite the sales contraction, Honeywell demonstrated resilience through focused cost-saving initiatives and operational efficiencies, which helped to improve gross margins in certain segments. The company's strategic areas of focus for 2010 include driving profitable growth through innovation, global expansion in emerging markets, and proactive cost management. The financial performance in 2009 was impacted by lower sales volumes across most segments, with Transportation Systems and Specialty Materials seeing the most pronounced decreases. However, the company's diversified business model, spanning Aerospace, Automation and Control Solutions, Specialty Materials, and Transportation Systems, provided a degree of stability. Honeywell continued to invest in research and development, albeit at a slightly lower absolute level than the previous year, while maintaining its commitment to returning value to shareholders through dividends and strategic share repurchases under its existing program. The company's liquidity remained strong, supported by operating cash flows and available credit facilities.
Feb 12, 2010
2008
Honeywell International Annual Report, Year Ended Dec 31, 2008
Honeywell International Inc.'s 2008 10-K filing reveals a company with resilient top-line growth, driven by its diversified segments, particularly Aerospace and Automation and Control Solutions (ACS). Despite a challenging global economic environment, net sales increased by 6% to $36.6 billion, with segment profit growing to $4.8 billion. The company demonstrated strong operational execution, managing raw material costs and driving productivity savings. The company strategically invested in acquisitions, notably in the ACS segment, to expand its offerings and market reach. Honeywell also maintained a strong commitment to shareholder returns through share repurchases and dividend increases, signaling confidence in its financial health and future prospects. The report highlights proactive management of costs and capacity, and a focus on innovation and global expansion as key priorities for the upcoming year.
Feb 13, 2009
2007
Honeywell International Annual Report, Year Ended Dec 31, 2007
Honeywell International Inc.'s 2007 Form 10-K filing reveals a company with robust sales growth and strong performance across its diverse segments. Net sales increased by 10% to $34.6 billion, driven by growth in Aerospace and Automation and Control Solutions (ACS). The company demonstrated improved profitability, with income from continuing operations rising to $2.44 billion, a 17.6% increase year-over-year. This growth was supported by higher gross margins, effective cost management (as SG&A as a percentage of sales decreased), and strategic acquisitions. Financially, Honeywell maintained a strong liquidity position, with significant operating cash flow and a substantial backlog of $12.3 billion. The company continued its commitment to returning value to shareholders through share repurchases, having bought back approximately $3.9 billion in shares during 2007. While facing industry-specific challenges and risks such as raw material price volatility and international operational risks, Honeywell appears well-positioned due to its diversified business model and focus on innovation and cost efficiency.
Feb 15, 2008
2006
Honeywell International Annual Report, Year Ended Dec 31, 2006
Honeywell International Inc. reported strong growth and improved profitability in its 2006 fiscal year, as detailed in its 2007 10-K filing. The company experienced a significant increase in net sales, primarily driven by acquisitions and robust volume growth across its key segments, including Aerospace and Automation and Control Solutions. The acquisition of full ownership of UOP significantly boosted the Specialty Materials segment. Honeywell also demonstrated a commitment to shareholder returns, actively repurchasing shares under its authorized program and increasing dividends. Despite facing challenges such as rising raw material costs and a competitive global market, Honeywell highlighted its strategic focus on driving profitable growth through innovation, global expansion, and disciplined operational execution. The company's management emphasized initiatives aimed at improving efficiency, reducing costs, and enhancing productivity through its Honeywell Operating System (HOS), Velocity Product Development (VPD)™, and Functional Transformation programs. Key areas of focus for 2007 included continued innovation, expansion in emerging markets, and disciplined M&A activity, positioning the company for sustained growth and value creation.
Feb 16, 2007
2005
Honeywell International Annual Report, Year Ended Dec 31, 2005
Honeywell International Inc.'s 2005 10-K report highlights a year of substantial growth and strategic acquisitions. Net sales increased by 8% to $27.65 billion, driven by strong performance across its core segments, particularly Aerospace and Automation and Control Solutions. The company completed several key acquisitions, including Novar plc and the remaining stake in UOP LLC, bolstering its market position and expanding its product and service offerings. These strategic moves, coupled with ongoing operational improvements and productivity initiatives, contributed to a significant increase in segment profit. Despite economic headwinds and challenges within certain industries, Honeywell demonstrated resilience and a commitment to shareholder value. The company continued its share repurchase program and increased its dividend, reflecting confidence in its financial strength and future prospects. Management focused on integrating acquisitions, driving innovation, and managing costs effectively, positioning Honeywell for continued growth and profitability in the competitive global marketplace. Key areas of focus include expanding the aftermarket in Aerospace, extending technology leadership in Automation and Control Solutions, optimizing its Specialty Materials portfolio, and sustaining turbocharger technology in Transportation Systems.
Mar 1, 2006
2004
Honeywell International Annual Report, Year Ended Dec 31, 2004
Honeywell International Inc.'s 2004 10-K filing highlights a strong year for the company, with net sales increasing by 11% to $25.6 billion, driven by broad-based growth across its four reportable segments: Aerospace, Automation and Control Solutions (ACS), Specialty Materials, and Transportation Systems. Net income remained robust at $1.28 billion, though slightly down from the prior year, impacted by significant charges including environmental matters and increased pension expenses. The company saw a significant recovery in its Aerospace segment, benefiting from an improving commercial air transport market and favorable impacts from safety mandates. The filing also details Honeywell's ongoing strategic initiatives, including investments in new product development and efforts to improve manufacturing productivity. The company is actively managing its portfolio, with notable divestitures of non-strategic businesses. Management expresses confidence in the company's liquidity and its ability to fund future capital expenditures, debt repayments, and strategic acquisitions, including the significant pending acquisition of Novar plc. However, ongoing legal and environmental matters, particularly asbestos-related liabilities and a significant charge related to the Interfaith Community Organization v. Honeywell International Inc. case, represent notable risks and potential impacts on future results.
Feb 25, 2005
2003
Honeywell International Annual Report, Year Ended Dec 31, 2003
Honeywell International's 2003 Form 10-K shows a company recovering from a difficult 2002. Net sales rose 4% to $23.1 billion, driven mainly by acquisitions (+3%) and favorable foreign exchange (+3%), while volume and price were flat. Net income swung to $1.32 billion ($1.54 per diluted share) from a $220 million loss in 2002, largely because repositioning, litigation, and impairment charges fell from $3.06 billion to $278 million. Segment profit was roughly flat at $2.52 billion, and gross margin edged up to 21.1%. Operating cash flow was $2.2 billion, modestly down from $2.4 billion, mainly because of a $540 million increase in voluntary U.S. pension contributions. The balance sheet strengthened, with shareowners' equity rising to $10.7 billion from $8.9 billion, largely from currency translation gains and the removal of a prior-year pension-related equity charge. Total debt was roughly flat at $5.2 billion. Honeywell ended the year with $2.95 billion in cash and no commercial paper outstanding. Aerospace, the largest segment at 38% of sales, remained under pressure from the commercial air transport downturn. Segment profit there fell 7%, and the three rating agencies kept negative outlooks on the company's credit ratings. The key risks for investors are asbestos and environmental liabilities. Asbestos cash payments were expected to reach about $730 million in 2004, against roughly $1.4 billion of insurance recoveries still probable. The Jersey City chromium case could require excavation costs that the plaintiff's expert estimated at $400 million, and Honeywell is appealing. Pension expense is also set to rise by about $241 million in 2004, to $380 million.
Mar 4, 2004
2002
Honeywell International Annual Report, Year Ended Dec 31, 2002
Honeywell's 2002 Form 10-K shows a company in a difficult year: net sales fell 6% to $22,274 million, and the company posted a net loss of $220 million ($0.27 per share), compared with net income of $1,659 million in 2000. The loss was driven almost entirely by $3,059 million of pretax repositioning, litigation, business impairment and other charges, most notably a $1,548 million asbestos charge tied to NARCO and a $877 million business impairment charge. Excluding these items, the core business remained profitable, with segment profit of $2,508 million, though it declined from $2,748 million in 2001. Operating cash flow was solid at $2,380 million, up from $1,996 million. The Aerospace segment, roughly 40% of sales, was the main pressure point. Its sales fell 8% and segment profit fell 22%, reflecting the post-September 11 collapse in commercial air transport, including a 32% drop in OE sales to air transport customers. Automation and Control Solutions was the most resilient segment, with segment profit up 9% to $890 million. Specialty Materials earned only $57 million, hurt by pricing pressure and a 44% decline in Advanced Circuits sales. Management guided to roughly $400 million of incremental pretax savings from repositioning actions in 2003. For investors, the central issue is the asbestos exposure. Honeywell recorded $2.0 billion of probable insurance recoveries against an accrued asbestos liability, and it is negotiating settlements covering about 90% of current NARCO claimants. The outcome depends on court approval of a trust structure and on the Bendix sale to Federal-Mogul, which remains subject to definitive agreements and bankruptcy court confirmation. The balance sheet remains sound, with a $2 billion revolving credit facility undrawn at year-end and total debt of $5,089 million. Ratings agencies, however, carry negative outlooks due to Aerospace weakness.
Mar 6, 2003
2001
Honeywell International Annual Report, Year Ended Dec 31, 2001
Honeywell International Inc.'s 2001 10-K filing reveals a challenging year marked by a net loss of $99 million, a significant shift from the $1.66 billion net income in 2000. This decline was primarily driven by substantial "repositioning and other charges" totaling $2.8 billion, which included workforce reductions, asset impairments, and charges related to litigation and business disposals. The Aerospace segment, which represents the largest portion of sales, experienced a significant downturn due to the post-September 11th impact on the aviation industry, with sales down 3% and segment profit down 21%. The Specialty Materials segment also saw a sharp decline in sales and profit, largely attributed to weakness in the electronics and telecommunications markets. Despite the net loss and operational challenges, the company generated strong operating cash flow of $1.996 billion. Management has been actively implementing cost-reduction measures, including significant workforce reductions, and is focused on improving working capital performance. The company's liquidity remains strong, supported by available cash and credit lines. While the report highlights ongoing restructuring and cost-saving initiatives, the significant charges and the impact of the economic slowdown, particularly in the aerospace sector, are key factors for investors to consider.
Mar 20, 2002
2000
Honeywell International Annual Report, Year Ended Dec 31, 2000
Honeywell International's fiscal 2000 10-K (filed March 30, 2001) reports net sales of $25.0 billion, up 5% from $23.7 billion in 1999, with growth driven mainly by the Pittway acquisition (6 points) partially offset by foreign exchange (-2 points). Reported net income rose 8% to $1.66 billion, or $2.05 per diluted share, from $1.54 billion ($1.90). Excluding one-time items in both years (2000 included a $634 million net after-tax charge from asset impairments, repositioning and environmental charges, partly offset by a gain on the TCAS divestiture; 1999 included a $624 million net charge), underlying earnings grew about 6%. Segment profit rose 11% to $3.63 billion, with Aerospace Solutions and Automation & Control leading and Performance Materials declining 24% on higher raw material costs. The most important context for investors is that the company is being acquired by General Electric. Under the October 2000 merger agreement, each Honeywell share converts into 1.055 GE shares, and shareowners approved the deal on January 10, 2001. The deal remains subject to regulatory review, with closing targeted for as early as 2001. Honeywell also rescinded its share repurchase program, and the agreement carries a $1.35 billion termination fee plus a GE option on 19.9% of outstanding shares. Management expects over $600 million of pretax savings from 2000-2001 actions in 2001, rising to $780 million in 2002, and plans a further restructuring charge in Q1 2001. Balance sheet leverage increased, with total debt rising 11% to $5.6 billion following the $2.2 billion Pittway acquisition, while cash used in investing activities was $2.7 billion. Material legal exposure remains in the Litton antitrust case, where a $660 million judgment plus about $35 million in fees is under appeal and no provision has been recorded, and in shareowner securities suits that management believes lack merit.
Mar 30, 2001
1997
Honeywell International Annual Report, Year Ended Dec 31, 1997
AlliedSignal Inc. reported 1997 net sales of $14.47 billion, up from $13.97 billion in 1996, with net income of $1.17 billion, or $2.07 per share basic ($2.02 assuming dilution), compared with $1.02 billion, or $1.80 per share, in 1996. Aerospace was the strongest segment, with net sales of $6.41 billion and adjusted net income of $529 million, up 37% from 1996. Automotive sales declined 10% to $3.80 billion after the divestiture of the braking and safety restraints businesses, while Engineered Materials sales rose 6% to $4.25 billion. Reported net income includes a $250 million pretax provision for repositioning and other charges and a $226 million pretax net gain on business sales. The company spent heavily on acquisitions in 1997, including Prestone, Grimes Aerospace, Astor and Holt Lloyd, and in January 1998 it acquired the Hardware Group and PacAero unit of Banner Aerospace for about $350 million. It also sold its automotive safety restraints business to Breed Technologies for $710 million in cash. Backlog for aerospace products reached $5.09 billion at year-end 1997, and the company anticipates that about $4.25 billion of it will be filled during 1998. Total assets rose to $13.71 billion, and shareowners' equity was $4.39 billion. Long-term debt as a percent of total capital fell to 19.7%, while total debt as a percent of total capital rose to 31.7%. The company repurchased 21.0 million shares for $814 million in 1997 and approved a 15% increase in its quarterly dividend, from $0.13 to $0.15 per share, effective in the first quarter of 1998. Management expects aerospace earnings to remain strong and plans capital expenditures of about $700 million in 1998.
Feb 26, 1998
1995
Honeywell International Annual Report, Year Ended Dec 31, 1995
Important note: the filing provided is the Form 10-K of AlliedSignal Inc. (Commission file 1-8974, Morristown, NJ), filed February 27, 1996 for fiscal 1995. It is not a Honeywell International filing. AlliedSignal took the Honeywell name only after its 1999 merger with Honeywell Inc., so this analysis covers AlliedSignal. Investors checking HON should verify the filing source. AlliedSignal reported record 1995 results. Net sales rose 12% to $14,346 million, and net income rose 15% to $875 million, or $3.09 per share. Income from operations was $1,260 million, a 9% increase, or 13% excluding nonrecurring items. Return on average shareowners' equity was 26.7%, and operating cash flow was $1,216 million. Growth came mainly from Engineered Materials and Aerospace. Engineered Materials net income rose to $473 million, including a $71 million gain on exiting the HDPE joint venture, and adjusted net income was $402 million, up 22%. Aerospace net income rose 17% to $303 million on $5,084 million of sales, supported by commercial avionics, TCAS and the Lycoming engine acquisition. Automotive was the weak spot. Reported net income was $146 million after a $115 million pretax charge to exit the light-vehicle anti-lock braking (ABS) business. Adjusted net income was flat at $217 million. The balance sheet improved, with long-term debt falling to 25.6% of total capital from 30.4%. Management plans 1996 capital spending of about $765 million, funded internally, and raised the quarterly dividend 15% to $0.225.
Feb 27, 1996
1994
Honeywell International Annual Report, Year Ended Dec 31, 1994
This Form 10-K for fiscal 1994 was filed on March 2, 1995, by AlliedSignal Inc. (Commission file 1-8974). The filing does not match the requested ticker: it is AlliedSignal's report, not Honeywell International's. AlliedSignal later merged with Honeywell in 1999 and adopted the Honeywell name and HON ticker, so this document predates that combination. The company reported record results in 1994. Net sales rose 8% to $12,817 million, and income from operations rose 21% to $1,152 million, with the operating margin improving from 7.9% to 9.0%. Net income was $759 million, or $2.68 per share, compared with $411 million ($1.45 per share) in 1993. The 1993 figure included a $245 million after-tax accounting charge, so 1993 income before that charge was $656 million ($2.31 per share). Management attributed the improvement to productivity programs, business consolidations, and volume gains in the Automotive and Engineered Materials segments. The company operates three segments: Aerospace ($4,623 million in sales, $260 million in net income), Automotive ($4,922 million, $223 million), and Engineered Materials ($3,272 million, $331 million). Aerospace backlog was $4,730 million at year-end, and management expects the commercial aviation downturn to bottom in 1995. Growth initiatives included the $375 million purchase of Textron's Lycoming Turbine Engine Division, the acquisition of General Safety's seat belt business, and the purchase of a Ford spark plug plant. The board raised the quarterly dividend 16% to $0.195 per share, effective in the first quarter of 1995. Balance sheet and cash flow were solid. Operating cash flow was $1,043 million, capital expenditures were $639 million (projected at about $700 million for 1995), and total debt fell $273 million to $1,687 million. The long-term debt to capital ratio improved to 30.4% from 37.9%. Shareowners' equity rose to $2,982 million, and the company had 283.1 million shares outstanding. Risks include declining U.S. defense spending, commercial aerospace cyclicality, and environmental liabilities, which were recorded at $494 million. Management does not expect environmental matters to have a material adverse effect on financial position. The Goodrich patent suit was ruled in the company's favor at the district court level and is on appeal.
Mar 2, 1995
1993-A
Honeywell International Annual Report (Amendment), Year Ended Dec 31, 1993
AlliedSignal Inc. reported net sales of $11.83 billion for 1993, down 2% from $12.04 billion in 1992, with income from operations rising to $954 million from $415 million. Income before the cumulative effect of accounting changes was $656 million, or $2.31 a share, compared with $535 million, or $1.90 a share, in 1992. After a $245 million after-tax charge for adopting FASB No. 112 (postemployment benefits), net income was $411 million, or $1.45 a share, versus a net loss of $712 million in 1992. The company stated that excluding nonrecurring items and the FASB 112 impact, 1993 net income was $659 million, or $2.33 a share. Management expects revenue growth in 1994 and profit increases "significantly" based on its growth strategy and productivity gains. By segment, Aerospace sales fell 8% to $4.53 billion while adjusted net income was $228 million; Automotive sales were essentially flat at $4.51 billion with adjusted net income of $184 million (per the segment table, adjusted net income was $184 million against $226 million reported); and Engineered Materials sales rose 7% to $2.79 billion with adjusted net income of $272 million. The balance sheet showed total assets of $10.83 billion, cash of $892 million, total debt of $1.96 billion, and a long-term debt-to-capital ratio of 37.9%. The company repurchased 6.7 million shares for $220 million in 1993 and declared a two-for-one stock split payable March 14, 1994, along with a 16% increase in the quarterly dividend to $0.1675 per post-split share beginning in the second quarter of 1994. The filing also details significant portfolio moves: the acquisition of Sundstrand's Data Control business for $195 million, the formation of truck brake ventures with Knorr-Bremse, a planned carpet fiber joint venture with BASF, and a pending environmental catalysts combination with General Motors. A pending Goodrich patent suit seeks damages of approximately $350 million before trebling, which the company believes is without merit, and management does not expect a material adverse effect on its financial position.
Mar 15, 1994