What were the main drivers of Honeywell's sales growth in the second quarter of 2012?

Sales growth was primarily driven by organic growth in key segments such as Aerospace and Performance Materials and Technologies, along with contributions from acquisitions. Specifically, Aerospace saw increased commercial OE and aftermarket sales, while Performance Materials and Technologies benefited from strong UOP performance and the acquisition of a phenol plant.

How did Honeywell's profitability change in the second quarter compared to the prior year?

Honeywell demonstrated improved profitability, with Net income attributable to Honeywell increasing to $902 million, up from $810 million in the second quarter of 2011. Diluted EPS also rose to $1.14 from $1.02. This improvement was supported by increased segment profits, particularly in Aerospace and Performance Materials and Technologies, and lower pension expense, partially offset by higher other postretirement expenses and repositioning charges.

What is the status of Honeywell's financial liquidity and capital resources?

Honeywell maintained strong liquidity. Cash provided by operating activities more than doubled to $1.17 billion in the first six months of 2012. The company has a $3 billion credit agreement, a substantial share repurchase program, and continues to manage its cash effectively through operational improvements, investments, debt reduction, and returning capital to shareholders.

Are there any significant legal or environmental matters that investors should be aware of?

Honeywell is involved in various legal and environmental matters, including ongoing assessments and remediation related to environmental contamination and asbestos liabilities from predecessor companies. While the company has recorded reserves for these matters and does not currently expect them to materially impact its consolidated financial position, it notes that the ultimate costs could be material to operating results in the periods they are recognized or paid. Specific ongoing litigation includes environmental investigations at the Hopewell, Virginia facility and a dispute with the UAW regarding retiree healthcare coverage.

HON 10-Q Quarterly Report Q2 FY2012 — Revenue, Net Income, EPS

Summary

Honeywell International Inc. reported solid financial results for the second quarter and first half of 2012, demonstrating growth in net sales and net income attributable to Honeywell. Net sales for the second quarter increased by 4% to $9.4 billion, and by 6% for the first half to $18.7 billion, driven by organic growth across key segments like Aerospace and Performance Materials and Technologies, along with contributions from acquisitions. Net income attributable to Honeywell for the second quarter rose to $902 million ($1.14 per diluted share) from $810 million ($1.02 per diluted share) in the prior year. For the first half of 2012, net income attributable to Honeywell was $1.73 billion ($2.19 per diluted share), up from $1.52 billion ($1.90 per diluted share) in the same period last year. The company's balance sheet remains strong, with total assets of $40.2 billion at June 30, 2012, and improved cash flow from operations, which nearly doubled for the first six months of the year compared to the previous year, underscoring effective working capital management and operational execution.

Financial Highlights

48 data points

Beta

Revenue

$9.44B

0.3% Gross Margin

Net Income

$902.00M

0.1% Net Margin

EPS (Diluted)

$1.14

Total Assets

$40.17B

Cash & Equivalents

$4.22B

Free Cash Flow

$973.00M

Financial Statements

Beta

Revenue	$9.44B
Cost of Revenue	$6.92B
Gross Profit	$2.51B
SG&A Expenses	$1.23B
Operating Income	$902.00M
Net Income	$902.00M
EPS (Basic)	$1.15
EPS (Diluted)	$1.14
Shares Outstanding (Basic)	781.40M
Shares Outstanding (Diluted)	790.50M

Key Highlights

1Net sales increased 4% to $9.4 billion in Q2 2012 and 6% to $18.7 billion for the first six months of 2012.
2Net income attributable to Honeywell grew to $902 million ($1.14 per diluted share) in Q2 2012 and $1.73 billion ($2.19 per diluted share) for the first six months.
3Aerospace segment profit saw a significant increase of 25% in Q2 and 19% for the first half, driven by organic growth and favorable OEM payments.
4Performance Materials and Technologies segment also showed strong growth with a 10% sales increase in Q2 and 14% for the first half, boosted by acquisitions and organic growth.
5Cash provided by operating activities significantly increased to $1.17 billion for the first six months of 2012, up from $695 million in the prior year period.
6The company continues to manage its portfolio, with ongoing repositioning actions aimed at cost savings and operational improvements.
7The company has access to a $3 billion credit agreement and a $1.9 billion share repurchase program remained available as of June 30, 2012.

HONEYWELL INTERNATIONAL INC Quarterly Report for Q2 Ended Jun 30, 2012

Summary

Financial Highlights

Key Highlights

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