Earnings Release

Honeywell Reports Full-Year 2015 Sales Of $38.6 Billion; Earnings Up 10% To $6.10

January 29, 2016

MORRIS PLAINS, N.J., Jan. 29, 2016 /PRNewswire/ -- Honeywell (NYSE: HON) today announced results for the fourth quarter and full-year of 2015:

Total Honeywell

     
       

($ Millions, except Earnings Per Share)     

FY 2014

FY 2015

Change

Sales

40,306

38,581

(4%)

Segment Margin

16.6%

18.8%

220 bps

Operating Income Margin (Ex-Pension MTM)

15.1%

17.9%

280 bps

Earnings Per Share (Reported)

$5.33

$6.04

13%

Earnings Per Share (Ex-Pension MTM)

$5.56

$6.10

10%

Cash Flow from Operations      

5,024

5,454

9%

Free Cash Flow (1)         

3,930

4,381

11%

       
 

4Q 2014

4Q 2015

Change

Sales

10,266

9,982

(3%)

Segment Margin

15.9%

18.8%

290 bps

Operating Income Margin (Ex-Pension MTM)

14.5%

18.0%

350 bps

Earnings Per Share (Reported)

$1.20

$1.53

28%

Earnings Per Share (Ex-Pension MTM)

$1.43

$1.58

10%

Cash Flow from Operations      

1,762

1,959

11%

Free Cash Flow (1)         

1,348

1,571

17%

       

(1)    Cash Flow from Operations Less Capital Expenditures

 

*Throughout this press release, core organic sales growth refers to reported sales growth less the impacts from foreign currency translation, M&A and raw materials pass-through pricing in the Resins & Chemicals business of PMT. The raw materials pricing impact is excluded in instances where raw materials costs are passed through to customers, which drives fluctuations in selling prices not tied to volume growth. A reconciliation of core organic sales growth to reported sales growth is provided in the attached financial tables.

"Honeywell delivered a strong fourth quarter, capping off another year of robust margin expansion, earnings growth, and cash flow," said Honeywell Chairman and CEO Dave Cote.  "We grew earnings 10% in a tough environment, representing our sixth consecutive year of double-digit earnings growth.  Segment margins grew by 220 basis points driven by strong execution across the portfolio and our key process initiatives, including HOS Gold.  Free Cash Flow for the full year increased 11% to $4.4 billion, which exceeded the high-end of our guidance range and included over 125% conversion in the fourth quarter.  We committed to more than $6 billion in acquisitions in 2015 to bolster our Great Positions in Good Industries, reinvested $1.1 billion in our businesses through high-return capital expenditure projects, and returned more than $3.5 billion to our shareowners, including a 15% increase in our dividend.  We also funded more than $160 million in new restructuring projects, including $60 million in the fourth quarter, which will put us in an even stronger position for the future." 

"We are planning conservatively in 2016 as we are expecting another year of slow global economic growth," continued Cote.  "But, we remain confident in Honeywell's ability to outperform.  We will support growth where there are opportunities to drive outperformance, be cautious in our sales planning, plan costs and spending conservatively, and continue to support the seed planting for new products, services, geographies, and process improvements that allow us to perform well now and in the future.  We expect continued margin expansion and earnings outperformance in 2016 and over the long term, supported by our balanced portfolio, HOS Gold breakthrough goals, further penetration of High Growth Regions, and funded restructuring projects."

The company also reaffirms its full-year 2016 guidance.

2016 Full-Year Guidance

   
     
 

2016
Current Guidance

Change
vs. 2015

Sales

$39.9B - $40.9B

3% - 6%

Core Organic Growth 

 

1% - 2%

Segment Margin

18.9% - 19.3%

10 - 50 bps (2)

Operating Income Margin (Ex-Pension MTM)

18.0% - 18.4%

10 - 50 bps (3)

Earnings Per Share (Ex-Pension MTM)  

$6.45 - $6.70

6% - 10%

Free Cash Flow (1)

$4.6 - $4.8B

5% - 10%

     

1.       Cash Flow from Operations Less Capital Expenditures

2.       Segment Margin Ex-M&A Up 80 - 110 bps

3.       Operating Margin Ex-M&A Up 80 - 110 bps

Full-year and fourth quarter 2015 results by business segment are provided below.         

Segment Performance

   
       

Aerospace

     
       

($ Millions)  

FY 2014

FY 2015

% Change

Sales

15,598

15,237

(2%)

Segment Profit 

2,915

3,218

10%

Segment Margin

18.7%

21.1%

240 bps

       

($ Millions)  

4Q 2014

4Q 2015

% Change

Sales

3,842

3,983

4%

Segment Profit 

663

856

29%

Segment Margin

17.3%

21.5%

420 bps

                                                                                                                                                              

  • Sales for the fourth quarter were up 2% on a core organic basis, and were up 4% reported driven by the $184 million OEM incentives incurred in the fourth quarter of 2014 partially offset by the unfavorable impact of foreign currency.  Commercial OE sales were up 9% on a core organic basis (45% reported) driven by strong Business and General Aviation (BGA) engine shipments and higher shipments to large Air Transport and Regional (ATR) OEMs.  Commercial Aftermarket sales were up 3% on a core organic basis (2% reported) driven by continued growth in repair and overhaul activities.  Defense & Space sales decreased (1%) on a core organic basis (down 3% reported) driven by lower sales to the U.S. government and a difficult prior year comparison in the international business.  Transportation Systems sales were up 1% on a core organic basis driven by new platform launches and higher diesel and gas turbo penetration on passenger vehicles, partially offset by lower commercial vehicle production.  TS sales were down (10%) reported due to the unfavorable impact of foreign currency.
  • Segment profit for the fourth quarter was up 29% and segment margins expanded 420 bps to 21.5%, driven by the fourth quarter 2014 OEM incentives, productivity net of inflation, and commercial excellence, partially offset by the margin impact of higher OE shipments and continued investments for growth.  Excluding the fourth quarter 2014 OEM incentives, segment profit was up 1%, and segment margins expanded 50 basis points.

 

Automation and Control Solutions

       

($ Millions)  

FY 2014

FY 2015

% Change

Sales

14,487

14,109

(3%)

Segment Profit 

2,200

2,313

5%

Segment Margin

15.2%

16.4%

120 bps

       

($ Millions)  

4Q 2014

4Q 2015

% Change

Sales

3,847

3,721

(3%)

Segment Profit 

613

616

Flat

Segment Margin

15.9%

16.6%

70 bps

 

  • Sales for the fourth quarter were flat on a core organic basis and down (3%) reported driven by the unfavorable impact of foreign currency.  Energy, Safety & Security (ESS) sales decreased (1%) on a core organic basis (down 3% reported) driven primarily by a difficult prior year comparison in Sensing & Productivity Solutions (S&PS), partially offset by continued growth in Security and Fire (HSF) on a global basis.  Building Solutions & Distribution (BSD) sales increased 3% on a core organic basis (down 3% reported) driven by continued strength in Americas Distribution partially offset by slowing Building Solutions backlog conversion.
  • Segment profit for the fourth quarter was flat and segment margins expanded 70 bps to 16.6% driven by productivity net of inflation, benefits of previously funded restructuring projects, and commercial excellence, partially offset by continued investments for growth.

 

Performance Materials and Technologies

       

($ Millions)  

FY 2014

FY 2015

% Change

Sales

10,221

9,235

(10%)

Segment Profit 

1,817

1,935

6%

Segment Margin

17.8%

21.0%

320 bps

       

($ Millions)  

4Q 2014

4Q 2015

% Change

Sales

2,577

2,278

(12%)

Segment Profit 

425

462

9%

Segment Margin

16.5%

20.3%

380 bps

 

  • Sales for the fourth quarter were down (4%) on a core organic basis and down (12%) reported driven by the unfavorable impact of foreign currency and lower raw materials pass-through pricing in Resins & Chemicals.  The decrease in core organic sales was primarily driven by lower UOP gas processing, equipment and licensing sales, HPS field products weakness, and lower volume in Resins & Chemicals, partially offset by higher UOP catalyst shipments and higher volume in Fluorine Products. 
  • Segment profit for the fourth quarter was up 9% and segment margins increased 380 bps to 20.3%, driven by productivity net of inflation, commercial excellence, and the favorable impact of raw materials pass-through pricing in Resins & Chemicals (pricing model protects profit dollars).

Honeywell will discuss its results during its investor conference call today starting at 9:30 a.m. EST.  To participate on the conference call, please dial (877) 780-3381 (domestic) or (719) 325-2336 (international) approximately ten minutes before the 9:30 a.m. EST start. Please mention to the operator that you are dialing in for Honeywell's fourth quarter 2015 earnings call. The live webcast of the investor call as well as related presentation materials will be available through the "Investor Relations" section of the company's Website (www.honeywell.com/investor).  Investors can hear a replay of the conference call from 12:30 p.m. EST, January 29, until 12:30 p.m. EST, February 5, by dialing (888) 203-1112 (domestic) or (719) 457-0820 (international). The access code is 4078904.

Honeywell (www.honeywell.com) is a Fortune 100 diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes, and industry; turbochargers; and performance materials.  For more news and information on Honeywell, please visit www.honeywellnow.com.

This release contains certain statements that may be deemed "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, that address activities, events or developments that we or our management intends, expects, projects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are based upon certain assumptions and assessments made by our management in light of their experience and their perception of historical trends, current economic and industry conditions, expected future developments and other factors they believe to be appropriate. The forward-looking statements included in this release are also subject to a number of material risks and uncertainties, including but not limited to economic, competitive, governmental, and technological factors affecting our operations, markets, products, services and prices. Such forward-looking statements are not guarantees of future performance, and actual results, developments and business decisions may differ from those envisaged by such forward-looking statements. We identify the principal risks and uncertainties that affect our performance in our Form 10-K and other filings with the Securities and Exchange Commission.

 

Honeywell International Inc

 

Consolidated Statement of Operations (Unaudited)

 

(Dollars in millions, except per share amounts)

 
                   
   

Three Months Ended

 

 Twelve Months Ended

 
   

December 31,

 

December 31,

 
   

2015

 

2014

 

2015

 

2014

 
                   

Product sales

$         7,960

 

$      8,185

 

$      30,695

 

$      32,398

 

Service sales

2,022

 

2,081

 

7,886

 

7,908

 

Net sales

9,982

 

10,266

 

38,581

 

40,306

 
                   

Costs, expenses and other

               

    Cost of products sold  (A)

5,649

 

6,203

 

21,775

 

23,889

 

    Cost of services sold  (A)

1,268

 

1,363

 

4,972

 

5,068

 
   

6,917

 

7,566

 

26,747

 

28,957

 

    Selling, general and administrative expenses (A)

1,332

 

1,460

 

5,006

 

5,518

 

    Other (income) expense

(4)

 

(146)

 

(68)

 

(305)

 

    Interest and other financial charges

84

 

82

 

310

 

318

 
   

8,329

 

8,962

 

31,995

 

34,488

 
                   

Income before taxes

1,653

 

1,304

 

6,586

 

5,818

 

Tax expense

450

 

329

 

1,739

 

1,489

 
                   

Net income

1,203

 

975

 

4,847

 

4,329

 
                   

Less: Net income attributable to the noncontrolling interest

9

 

19

 

79

 

90

 
                   

Net income attributable to Honeywell

$         1,194

 

$         956

 

$        4,768

 

$        4,239

 
                   

Earnings per share of common stock - basic

$           1.55

 

$        1.22

 

$          6.11

 

$          5.40

 
                   

Earnings per share of common stock - assuming dilution

$           1.53

 

$        1.20

 

$          6.04

 

$          5.33

 
                   

Weighted average number of shares outstanding - basic

771.8

 

783.8

 

779.8

 

784.4

 
                   

Weighted average number of shares outstanding - assuming dilution

780.8

 

794.1

 

789.3

 

795.2

 
                   
                   

(A) Cost of products and services sold and selling, general and administrative expenses include amounts for repositioning and other charges, pension and other postretirement (income) expense, and stock compensation expense.

 
                   

Below is a reconciliation of Earnings per share to Earnings per share, excluding mark-to-market pension expense.  We believe this measure is useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.

 
   
   

Three Months Ended

 

Twelve Months Ended

 
   

December 31,

 

December 31,

 
   

2015 1

 

2014 1

 

2015 1

 

2014 1

 
                   
 

Earnings per share of common stock - assuming dilution

$           1.53

 

$        1.20

 

$          6.04

 

$          5.33

 
 

Mark-to-market pension expense

0.05

 

0.23

 

0.06

 

0.23

 
                   
 

Earnings per share of common stock - assuming dilution,

               
 

excluding mark-to-market pension expense

$           1.58

 

$        1.43

 

$          6.10

 

$          5.56

 
                   
 

1- EPS utilizes weighted average shares outstanding and the effective tax rate for the period.  Mark-to-market uses a blended tax rate of 36.1% and 28.1% for 2015 and 2014.

 
                   

 

 

Honeywell International Inc

Segment Data (Unaudited)

(Dollars in millions)

                   
     

Three Months Ended

 

Twelve Months Ended

     

December 31,

 

December 31,

Net Sales

 

2015

 

2014

 

2015

 

2014

                   

Aerospace

 

$         3,983

 

$         3,842

 

$       15,237

 

$       15,598

                   

Automation and Control Solutions

 

3,721

 

3,847

 

14,109

 

14,487

                   

Performance Materials and Technologies

 

2,278

 

2,577

 

9,235

 

10,221

                   
 

Total

 

$         9,982

 

$       10,266

 

$       38,581

 

$       40,306

                   
                   

Reconciliation of Segment Profit to Income Before Taxes

                   
     

Three Months Ended

 

Twelve Months Ended

     

December 31,

 

December 31,

Segment Profit

 

2015

 

2014

 

2015

 

2014

                   

Aerospace

 

$            856

 

$            663

 

$         3,218

 

$         2,915

                   

Automation and Control Solutions

 

616

 

613

 

2,313

 

2,200

                   

Performance Materials and Technologies

 

462

 

425

 

1,935

 

1,817

                   

Corporate

 

(54)

 

(69)

 

(210)

 

(236)

                   
 

Total segment profit

 

1,880

 

1,632

 

7,256

 

6,696

                   

Other (expense) income (A)

 

(1)

 

137

 

38

 

269

Interest and other financial charges

 

(84)

 

(82)

 

(310)

 

(318)

Stock compensation expense (B)

 

(43)

 

(44)

 

(175)

 

(187)

Pension ongoing income (B)

 

131

 

67

 

430

 

254

Pension mark-to-market expense (B)

 

(67)

 

(249)

 

(67)

 

(249)

Other postretirement expense (B)

 

(10)

 

(12)

 

(40)

 

(49)

Repositioning and other charges (B)

 

(153)

 

(145)

 

(546)

 

(598)

                   

Income before taxes

 

$         1,653

 

$         1,304

 

$         6,586

 

$         5,818

                   
                   

(A) Equity income (loss) of affiliated companies is included in segment profit.

                   

(B) Amounts included in cost of products and services sold and selling, general and administrative expenses.

                   

 

 

Honeywell International Inc

Consolidated Balance Sheet (Unaudited)

(Dollars in millions)

           
     

December 31,

 

December 31,

     

2015

 

2014

           

ASSETS

         

Current assets:

       

    Cash and cash equivalents

 

$         5,455

 

$        6,959

    Accounts, notes and other receivables

 

8,075

 

7,960

    Inventories

 

4,420

 

4,405

    Deferred income taxes

 

-

 

722

    Investments and other current assets

 

2,103

 

2,145

 

Total current assets

 

20,053

 

22,191

           

Investments and long-term receivables

 

517

 

465

Property, plant and equipment - net

 

5,789

 

5,383

Goodwill

 

15,895

 

12,788

Other intangible assets - net

 

4,577

 

2,208

Insurance recoveries for asbestos related liabilities

 

426

 

454

Deferred income taxes

 

283

 

404

Other assets

 

1,776

 

1,558

           
 

Total assets

 

$       49,316

 

$      45,451

           

LIABILITIES AND SHAREOWNERS' EQUITY

       

Current liabilities:

       

    Accounts payable

 

$         5,580

 

$        5,365

    Commercial paper and other short-term borrowings

 

5,937

 

1,698

    Current maturities of long-term debt

 

577

 

939

    Accrued liabilities

 

6,277

 

6,771

 

Total current liabilities

 

18,371

 

14,773

           

Long-term debt

 

5,554

 

6,046

Deferred income taxes

 

558

 

236

Postretirement benefit obligations other than pensions

 

526

 

911

Asbestos related liabilities

 

1,251

 

1,200

Other liabilities

 

4,348

 

4,282

Redeemable noncontrolling interest

 

290

 

219

Shareowners' equity

 

18,418

 

17,784

           
 

Total liabilities, redeemable noncontrolling interest and shareowners' equity

 

$       49,316

 

$      45,451

           

 

 

Honeywell International Inc

 Consolidated Statement of Cash Flows (Unaudited)

(Dollars in millions)

                 
   

Three Months Ended

 

Twelve Months Ended

   

December 31,

 

December 31,

   

2015

 

2014

 

2015

 

2014

Cash flows from operating activities:

               

    Net income

 

$   1,203

 

$      975

 

$  4,847

 

$ 4,329

    Less: Net income attributable to the noncontrolling interest

 

9

 

19

 

79

 

90

    Net income attributable to Honeywell

 

1,194

 

956

 

4,768

 

4,239

    Adjustments to reconcile net income attributable to Honeywell to net

               

    cash provided by operating activities:

               

        Depreciation

 

169

 

168

 

672

 

667

        Amortization

 

53

 

58

 

211

 

257

        Loss on sale of non-strategic businesses and assets

 

2

 

-

 

1

 

11

        Gain on sale of available for sale investments

 

-

 

(116)

 

-

 

(221)

        Repositioning and other charges

 

153

 

145

 

546

 

598

        Net payments for repositioning and other charges

 

(208)

 

(229)

 

(537)

 

(530)

        Pension and other postretirement (income) expense

 

(54)

 

194

 

(323)

 

44

        Pension and other postretirement benefit payments

 

(38)

 

(44)

 

(122)

 

(167)

        Stock compensation expense

 

43

 

44

 

175

 

187

        Deferred income taxes

 

31

 

(123)

 

315

 

132

        Excess tax benefits from share based payment arrangements

 

(12)

 

(31)

 

(81)

 

(102)

        Other

 

(98)

 

(120)

 

(8)

 

(327)

        Changes in assets and liabilities, net of the effects of

               

        acquisitions and divestitures:

               

           Accounts, notes and other receivables

 

159

 

357

 

211

 

(172)

           Inventories

 

250

 

79

 

230

 

(200)

           Other current assets

 

191

 

(61)

 

80

 

120

           Accounts payable

 

(4)

 

153

 

(17)

 

307

           Accrued liabilities

 

128

 

332

 

(667)

 

181

Net cash provided by operating activities

 

1,959

 

1,762

 

5,454

 

5,024

                 

Cash flows from investing activities:

               

    Expenditures for property, plant and equipment

 

(388)

 

(414)

 

(1,073)

 

(1,094)

    Proceeds from disposals of property, plant and equipment

 

12

 

6

 

15

 

18

    Increase in investments

 

(1,013)

 

(935)

 

(6,714)

 

(4,074)

    Decrease in investments

 

2,537

 

1,164

 

6,587

 

3,288

    Cash paid for acquisitions, net of cash acquired

 

(5,043)

 

-

 

(5,228)

 

(4)

    Proceeds from sales of businesses, net of fees paid

 

(2)

 

3

 

1

 

160

    Other

 

(33)

 

(61)

 

(102)

 

(170)

Net cash used for investing activities

 

(3,930)

 

(237)

 

(6,514)

 

(1,876)

                 

Cash flows from financing activities:

               

    Net increase (decrease) in commercial paper and other short-term borrowings

 

2,254

 

(236)

 

4,265

 

309

    Proceeds from issuance of common stock

 

36

 

59

 

186

 

265

    Proceeds from issuance of long-term debt

 

12

 

18

 

60

 

97

    Payments of long-term debt

 

(732)

 

(2)

 

(880)

 

(609)

    Excess tax benefits from share based payment arrangements

 

12

 

31

 

81

 

102

    Repurchases of common stock

 

(163)

 

(235)

 

(1,884)

 

(924)

    Cash dividends paid

 

(465)

 

(409)

 

(1,726)

 

(1,510)

    Other

 

-

 

5

 

-

 

(2)

Net cash provided by (used for) financing activities

 

954

 

(769)

 

102

 

(2,272)

                 

Effect of foreign exchange rate changes on cash and cash equivalents

 

(91)

 

(225)

 

(546)

 

(339)

Net (decrease) increase in cash and cash equivalents

 

(1,108)

 

531

 

(1,504)

 

537

Cash and cash equivalents at beginning of period

 

6,563

 

6,428

 

6,959

 

6,422

Cash and cash equivalents at end of period

 

$   5,455

 

$   6,959

 

$  5,455

 

$ 6,959

                 

 

 

 

Honeywell International Inc

Reconciliation of Cash Provided by Operating Activities to Free Cash Flow and Calculation of Free Cash Flow Conversion (Unaudited)

(Dollars in millions)

               
               
 

Three Months Ended

 

 Twelve Months Ended

 

December 31,

 

December 31,

 

2015

 

2014

 

2015

 

2014

               

Cash provided by operating activities

$         1,959

 

$         1,762

 

$      5,454

 

$         5,024

Expenditures for property, plant and equipment

(388)

 

(414)

 

(1,073)

 

(1,094)

Free cash flow

$         1,571

 

$         1,348

 

$      4,381

 

$         3,930

               

Net income, attributable to Honeywell

$         1,194

 

$            956

 

$      4,768

 

$         4,239

Pension mark-to-market adjustment, net of tax (A)

43

 

179

 

43

 

179

Net income, attributable to Honeywell, excluding pension mark-to-market adjustment

$         1,237

 

$         1,135

 

$      4,811

 

$         4,418

               

Cash provided by operating activities

$         1,959

 

$         1,762

 

$      5,454

 

$         5,024

÷ Net income, attributable to Honeywell

$         1,194

 

$            956

 

$      4,768

 

$         4,239

Operating cash flow conversion

164%

 

184%

 

114%

 

119%

               

Free cash flow

$         1,571

 

$         1,348

 

$      4,381

 

$         3,930

÷ Net income, attributable to Honeywell, excluding pension mark-to-market adjustment

$         1,237

 

$         1,135

 

$      4,811

 

$         4,418

Free cash flow conversion

127%

 

119%

 

91%

 

89%

               

(A) Mark-to-market uses a blended tax rate of 36.1% and 28.1% for 2015 and 2014.

               

We define free cash flow as cash provided by operating activities less cash expenditures for property, plant and equipment.

               

We define free cash flow conversion as free cash flow divided by net income, attributable to Honeywell, excluding pension mark-to-market adjustment.

               

We believe that this metric is useful to investors and management as a measure of cash generated by business operations that will be used to repay scheduled debt maturities and can be used to invest in future growth through new business development activities or acquisitions, and to pay dividends, repurchase stock, or repay debt obligations prior to their maturities. This metric can also be used to evaluate our ability to generate cash flow from business operations and the impact that this cash flow has on our liquidity.

 

 

Honeywell International Inc

Reconciliation of Segment Profit to Operating Income and Calculation of Segment Profit and Operating Income Margins (Unaudited)

(Dollars in millions)

                 
 

Three Months Ended

 

 Twelve Months Ended

 

December 31,

 

December 31,

   

2015

 

2014

 

2015

 

2014

                 

Segment Profit

 

$         1,880

 

$        1,632

 

$      7,256

 

$      6,696

                 

Stock compensation expense (A)

 

(43)

 

(44)

 

(175)

 

(187)

Repositioning and other (A, B)

 

(158)

 

(154)

 

(576)

 

(634)

Pension ongoing income (A)

 

131

 

67

 

430

 

254

Pension mark-to-market adjustment (A)

 

(67)

 

(249)

 

(67)

 

(249)

Other postretirement expense (A)

 

(10)

 

(12)

 

(40)

 

(49)

                 

Operating Income

 

$         1,733

 

$        1,240

 

$      6,828

 

$      5,831

Pension mark-to-market adjustment (A)

 

(67)

 

(249)

 

(67)

 

(249)

Operating Income excluding pension mark-to-market adjustment

 

$         1,800

 

$        1,489

 

$      6,895

 

$      6,080

                 

Segment Profit

 

$         1,880

 

$        1,632

 

$      7,256

 

$      6,696

÷ Sales

 

$         9,982

 

$      10,266

 

$    38,581

 

$    40,306

Segment Profit Margin %

 

18.8%

 

15.9%

 

18.8%

 

16.6%

                 

Operating Income

 

$         1,733

 

$        1,240

 

$      6,828

 

$      5,831

÷ Sales

 

$         9,982

 

$      10,266

 

$    38,581

 

$    40,306

Operating Income Margin %

 

17.4%

 

12.1%

 

17.7%

 

14.5%

                 

Operating Income excluding pension mark-to-market adjustment

 

$         1,800

 

$        1,489

 

$      6,895

 

$      6,080

÷ Sales

 

$         9,982

 

$      10,266

 

$    38,581

 

$    40,306

Operating Income Margin excluding pension mark-to-market adjustment %

 

18.0%

 

14.5%

 

17.9%

 

15.1%

                 

(A) Included in cost of products and services sold and selling, general and administrative expenses.

(B) Includes repositioning, asbestos, environmental expenses and equity income adjustment.

                 

We believe these measures are useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.

 

 

 

Honeywell International Inc

Reconciliation of Core Organic Sales Growth (Unaudited)

     
 

Three Months Ended

 

 Twelve Months Ended

 

December 31,

 

December 31,

 

2015

 

2015

Honeywell

     

Reported sales growth

(3%)

 

(4%)

Foreign currency translation, acquisitions, divestitures and other

2%

 

4%

Raw materials pricing in R&C

1%

 

1%

       

Core organic sales growth

0%

 

1%

       

PMT

     

Reported sales growth

(12%)

 

(10%)

Foreign currency translation, acquisitions, divestitures and other

4%

 

4%

Raw materials pricing in R&C

4%

 

5%

       

Core organic sales growth

(4%)

 

(1%)

       

Throughout this press release, core organic sales growth refers to reported sales growth less the impacts from foreign currency translation, M&A and raw materials pass-through pricing in the Resins & Chemicals business of PMT. The raw materials pricing impact is excluded in instances where raw materials costs are passed through to customers, which drives fluctuations in selling prices not tied to volume growth.

       

We believe core organic sales growth is a measure that is useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.

 

Contacts:

 
   

Media

Investor Relations

Robert C. Ferris

Mark Macaluso 

(973) 455-3388

(973) 455-2222

rob.ferris@honeywell.com 

mark.macaluso@honeywell.com

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/honeywell-reports-full-year-2015-sales-of-386-billion-earnings-up-10-to-610-300212071.html

SOURCE Honeywell

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