01—Abstract
Summary
Summary of the 10-K filed February 17, 2012. Cited figures are marked; the original filing is the authoritative source.
Honeywell International Inc. reported a strong performance for the fiscal year ending December 31, 2011, with net sales increasing by 13% to $36.5 billiona.
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 billionb, 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 billionc 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.
02—Key points
Key Highlights
- Net sales increased by 13% to $36.5 billion in 2011, driven by growth across all major segments.
- Segment profit rose by 19% to $5.4 billion, indicating strong operational performance and cost management.
- Aerospace segment sales grew 7% to $11.5 billion, supported by commercial aftermarket strength and business/general aviation rebound.
- Automation and Control Solutions (ACS) segment sales increased 13% to $15.5 billion, boosted by acquisitions and organic growth in Energy, Safety & Security.
- Performance Materials and Technologies (PMT) sales saw a significant 20% increase to $5.7 billion, driven by Advanced Materials and UOP performance.
- Transportation Systems reported a strong 21% sales increase to $3.9 billion, primarily due to higher turbocharger sales.
- The company repurchased $1.1 billion of common stock in 2011, with $1.9 billion remaining on its repurchase authorization, demonstrating commitment to shareholder returns.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2011, Honeywell International kept $0.06.
- Revenue$36.53B100.0%
- Cost of revenue−$28.56B78.2%
- Gross profit$7.97B21.8%
- Operating costs−$6.12B16.7%
- Operating income$1.86B5.1%
- Interest, other & tax$209.0M0.6%
- Net income$2.07B5.7%
04—Financials
Financial Highlights
Figures from 10-KFY2011filed February 17, 2012Financial Statements
FY2011 against FY2010
| Line item | FY2011FY2010 | Change |
|---|---|---|
| Revenue | $36.53B$32.35B | +12.9% |
| Cost of Revenue | $28.56B$24.72B | +15.5% |
| Gross Profit | $7.97B$7.63B | +4.5% |
| R&D Expenses | $1.80B$1.45B | +24.1% |
| SG&A Expenses | $5.40B$4.62B | +16.9% |
| Operating Income | $1.86B$1.94B | −4.4% |
| Net Income | $2.07B$2.02B | +2.2% |
| EPS (Basic) | $2.65$2.61 | +1.5% |
| EPS (Diluted) | $2.61$2.59 | +0.8% |
| Shares Outstanding (Basic) | 780.80M773.50M | +0.9% |
| Shares Outstanding (Diluted) | 791.60M780.90M | +1.4% |
05—Questions
Frequently Asked Questions
What were Honeywell's key financial results for the fiscal year ended December 31, 2011?
For the fiscal year ended December 31, 2011, Honeywell reported net sales of $36.5 billion, a 13% increase compared to the previous year. Segment profit increased by 19% to $5.4 billion. Net income attributable to Honeywell was $2.1 billion, or $2.61 per diluted share.
Which business segments performed strongest in 2011?
All segments showed growth, but Transportation Systems had the highest percentage sales increase at 21%, reaching $3.9 billion. Performance Materials and Technologies also demonstrated strong growth with a 20% increase in sales to $5.7 billion. The Aerospace and Automation and Control Solutions segments also reported solid increases of 7% and 13% respectively.
How did Honeywell manage its costs and profitability in 2011?
Honeywell focused on driving productivity savings, managing raw material costs, and integrating acquisitions. Despite increased pension and other post-retirement expenses, the company was able to expand its segment profit due to higher sales volumes, price realization, and operational efficiencies across its diversified businesses.
What is Honeywell's outlook for 2012 based on this filing?
For 2012, Honeywell's areas of focus included driving profitable growth through innovation, expanding global presence (especially in emerging regions), proactively managing costs, driving cash flow, and maintaining a flexible cost structure. They expected continued growth, though moderating in some areas like European light vehicle production and foreign exchange impacts.
06—Continue