10-KPeriod: FY2011

HONEYWELL INTERNATIONAL INC Annual Report, Year Ended Dec 31, 2011

Filed February 17, 2012For Securities:HONHONIV

Summary

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.

Financial Highlights

54 data points
Beta

Revenue

$36.53B

21.8% Gross Margin

Net Income

$2.07B

5.7% Net Margin

EPS (Diluted)

$2.61

Total Assets

$39.81B

Cash & Equivalents

$3.70B

Free Cash Flow

$2.04B

Financial Statements
Beta
Revenue$36.53B
Cost of Revenue$28.56B
Gross Profit$7.97B
R&D Expenses$1.80B
SG&A Expenses$5.40B
Operating Income$1.86B
Net Income$2.07B
EPS (Basic)$2.65
EPS (Diluted)$2.61
Shares Outstanding (Basic)780.80M
Shares Outstanding (Diluted)791.60M

Key Highlights

  • 1Net sales increased by 13% to $36.5 billion in 2011, driven by growth across all major segments.
  • 2Segment profit rose by 19% to $5.4 billion, indicating strong operational performance and cost management.
  • 3Aerospace segment sales grew 7% to $11.5 billion, supported by commercial aftermarket strength and business/general aviation rebound.
  • 4Automation and Control Solutions (ACS) segment sales increased 13% to $15.5 billion, boosted by acquisitions and organic growth in Energy, Safety & Security.
  • 5Performance Materials and Technologies (PMT) sales saw a significant 20% increase to $5.7 billion, driven by Advanced Materials and UOP performance.
  • 6Transportation Systems reported a strong 21% sales increase to $3.9 billion, primarily due to higher turbocharger sales.
  • 7The company repurchased $1.1 billion of common stock in 2011, with $1.9 billion remaining on its repurchase authorization, demonstrating commitment to shareholder returns.

Frequently Asked Questions

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.

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.

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.

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.