10-KPeriod: FY2008

HONEYWELL INTERNATIONAL INC Annual Report, Year Ended Dec 31, 2008

Filed February 13, 2009For Securities:HONHONIV

Summary

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.

Financial Highlights

46 data points
Beta

Revenue

$36.56B

14.9% Gross Margin

Net Income

$806.00M

2.2% Net Margin

EPS (Diluted)

$1.08

Total Assets

$35.49B

Cash & Equivalents

$2.06B

Free Cash Flow

$2.91B

Financial Statements
Beta
Revenue$36.56B
Cost of Revenue$31.12B
Gross Profit$5.44B
R&D Expenses$1.54B
SG&A Expenses$5.13B
Net Income$806.00M
EPS (Basic)$1.09
EPS (Diluted)$1.08
Shares Outstanding (Diluted)743.60M

Key Highlights

  • 1Net sales increased by 6% to $36.6 billion in 2008, demonstrating resilience in a challenging economic climate.
  • 2Segment profit grew by 4% to $4.8 billion, with Aerospace and Automation and Control Solutions (ACS) segments showing significant contributions.
  • 3The company made strategic acquisitions, particularly in the ACS segment, to enhance its product and service offerings.
  • 4Honeywell maintained a strong balance sheet with total debt of $8.4 billion and a focus on cash flow generation.
  • 5Shareholder returns were prioritized through continued share repurchases ($1.3 billion remaining under program) and a planned 10% dividend increase for 2009.
  • 6The company is navigating potential headwinds from economic conditions and raw material price volatility through cost management and hedging strategies.
  • 7Research and development expenses increased by 6% to $1.54 billion, underscoring a commitment to innovation.

Frequently Asked Questions

Honeywell reported a 6% increase in net sales for 2008, reaching $36.6 billion. This growth was driven by strong performance across its segments, particularly Aerospace and Automation and Control Solutions, which benefited from increased volume, pricing, and strategic acquisitions.

For 2009, Honeywell's key priorities included driving profitable growth through innovative products, expanding global presence, proactively managing raw material costs, optimizing working capital for cash flow, and continuing cost-saving initiatives. The company also aimed to align investments with long-term growth while managing short-term demand volatility.

Honeywell is addressing the challenging economic environment through a multi-pronged approach. This includes proactive cost management, productivity actions, effective working capital management, prioritizing investments, and actively monitoring customers and suppliers for liquidity constraints. The company's diversified business model also provides a degree of resilience.

Honeywell demonstrated a commitment to shareholder returns by continuing its share repurchase program, with $1.3 billion available for future repurchases as of year-end 2008. The company also planned a 10% increase in its 2009 dividend, reflecting confidence in its cash flow generation and financial position.