Honeywell Forecasts 2013 Sales Of $39.0-39.5 Billion, Up 4-5%; Proforma Earnings Per Share Of $4.75-4.95, Up 6-11%

   Honeywell Forecasts 2013 Sales Of $39.0-39.5 Billion, Up 4-5%; Proforma
                  Earnings Per Share Of $4.75-4.95, Up 6-11%

Company Also Reaffirms 2012 Outlook At Midpoint Of Previous Guidance And
Announces Plan To Acquire Intermec For Approximately $600 Million

PR Newswire

MORRIS TOWNSHIP, N.J., Dec. 10, 2012

MORRIS TOWNSHIP, N.J., Dec. 10, 2012 /PRNewswire/ --

  oCompany Forecasts 1-3% Organic Sales Increase, Up 4-5% Including
    Acquisitions And F/X
  o2013 Earnings Growth Driven By Strong Operational Performance And Sales
  oContinued Robust Cash Flow Generation Provides Flexibility To Deliver
  oIntermec Reflected In 2013 Outlook; Expands Scale And Global Reach In
    Scanning & Mobility

Honeywell (NYSE: HON) today announced its 2013 financial forecast and
reaffirmed its 2012 outlook at the midpoint of its previous guidance ranges,
reflected below.

2013 Guidance
                            2012         2013                Change
                            Guidance     Guidance            vs. 2012
Sales                       ~$37.5B     $39.0 - $39.5B     4 - 5%
Segment Margin              ~15.6%       15.8 - 16.1%        20 - 50 bps
Operating Income Margin^1   ~13.7%       14.2 - 14.5%        50 - 80 bps
Earnings Per Share^1        ~$4.47       $4.75 - $4.95       6% - 11%
Free Cash Flow^2            ~$3.7B      ~$3.7B             ~Flat
1. Proforma, V% / BPS Excludes Any Pension Mark to Market Adjustment
2. Free Cash Flow (Cash Flow from Operations Less Capital Expenditures) Prior
to Any NARCO Related Payments and Cash Pension Contributions

"We expect 2012 to be another year of strong execution for Honeywell, building
on an established track record over the past decade," said Honeywell Chairman
and CEO Dave Cote. "We're achieving good sales growth, record margins, and
double digit EPS growth while continuing to generate strong free cash flow.
Importantly, we'll have achieved these results while continuing to invest in
our future growth. We've done a lot over the past decade to transform
Honeywell and today we're achieving top-tier performance with a differentiated
and balanced mix of long- and short-cycle businesses, a successful pipeline of
new products, geographic expansion, and continued focus on our key
initiatives. While we're planning for a continued slow-growth macro
environment in 2013, we will remain flexible and adhere to our disciplined
focus on growth, efficiency and competitiveness, driving sales and margins
higher. Our productivity enablers, including the Honeywell Operating System,
Functional Transformation, Organizational Efficiency, and Velocity Product
Development™, will continue to be long-term differentiators for the company
and we anticipate that each will be a meaningful contributor to strong
earnings growth and cash generation in 2013."

Intermec Acquisition

Honeywell also announced today that it has signed a definitive agreement to
acquire Intermec (NYSE: IN), a leading provider of mobile computing, radio
frequency identification solutions (RFID) and bar code, label and receipt
printers for use in warehousing, supply chain, field service and manufacturing
environments for $10 per share in cash, or an aggregate purchase price of
approximately $600 million, net of cashand debt acquired. The transaction is
expected to further enhance Honeywell's scale in rugged mobile computing
devices, building on its Scanning & Mobility franchise within the company's
Automation and Control Solutions portfolio.

The purchase price translates to approximately ten times Intermec's trailing
12 months (TTM) earnings before interest, taxes, depreciation and amortization
(EBITDA) as of September 30, 2012, excluding certain corporate and public
company costs, or approximately five times on a synergy adjusted run-rate
basis. The transaction is expected to close by the end of the second quarter
of 2013 pending Intermec shareholder approval and following customary
regulatory reviews.

"The addition of Intermec is a natural extension to our Scanning & Mobility
business, which was established through the successful acquisitions of Hand
Held Products, Metrologic and EMS," said Honeywell Automation and Control
Solutions President and Chief Executive Officer Roger Fradin. "While Intermec
strengthens our core scanning and mobile computing business, it opens up
entirely new opportunities in RFID, voice solutions and barcode and receipt
printing segments that we currently don't serve. It expands our product
offerings and strengthens our intellectual property portfolio putting us in
position to be a technology leader for years to come in the highly attractive
automatic identification and data capture (AIDC) industry. Intermec has
extensive engineering capability and broad sales reach that we look forward to
integrating into our existing organization in an effort to build a leading
position in the AIDC marketplace. Once again, our world class acquisition
integration process will deliver value to shareholders."

Upon completion of the acquisition, Intermec would become part of Honeywell
Scanning & Mobility in Honeywell's Automation and Control Solutions business.
Intermec employs approximately 2,200 employees and operates more than 65
offices worldwide, serving nearly every region globally. The company is
headquartered in Everett, Washington.

Although the transaction would be dilutive in 2013 by three to four cents, the
estimated impact is included in the company's announced 2013 earnings per
share guidance range, and Honeywell anticipates Intermec to be accretive in

Honeywell will discuss its 2013 Outlook during its investor conference call
today starting at 10:00 a.m. EST. To participate, please dial (800) 862-9098
(domestic) or (785) 424-1051 (international) a few minutes before the 10:00
a.m. EST start. Please mention to the operator that you are dialing in for
Honeywell's December Outlook Call or use the conference ID HON1212. The live
webcast of the investor call and related presentation materials will be
available through the "Investor Relations" section of the company's Website
( The presentation materials will be in
Adobe Acrobat format. Investors can access a replay of the conference call
from 12:00 p.m. EST, December 10, until midnight, December 17, dialing (800)
388-6509 (domestic) or (402) 220-1111 (international).

Additional Information and Where to Find It
This press release relates to a proposed transaction between Honeywell and
Intermec. This press release is not a substitute for the proxy statement that
Intermec intends to file with the SEC or any other documents that Intermec may
file with the SEC or send to its stockholders in connection with the proposed
transaction. Before making any voting decision, Intermec investors and
stockholders are urged to read the proxy statement and all other relevant
documents filed or that will be filed by Intermec with the SEC in connection
with the proposed transaction as they become available because they will
contain important information about the proposed transaction and related

The proxy statement and any other relevant documents (when they become
available) that are filed or that will be filed with the SEC by Intermec are
available free of charge through the website maintained by the SEC at or by contacting Intermec Investor Relations at (425) 348-2600.

Participants in the Solicitation
Intermec and its directors, executive officers and other members of their
management may be deemed to be participants in the solicitation of proxies
from Intermec's stockholders in connection with the proposed transaction.
Information regarding Intermec's directors and executive officers is available
in Intermec's proxy statement for its 2012 annual meeting of stockholders,
which was filed with the SEC on April 12, 2012, and is available free of
charge through the website maintained by the SEC at or by
contacting Intermec Investor Relations at (425) 348-2600. Additional
information regarding participants in the proxy solicitation and a description
of their direct and indirect interests will be included in the proxy statement
Intermec intends to file with the SEC.

Honeywell ( is a Fortune 100 diversified technology and
manufacturing leader, serving customers worldwide with aerospace products and
services; control technologies for buildings, homes, and industry; automotive
products; turbochargers; andperformance materials. Based in Morris Township,
N.J., Honeywell's shares are traded on the New York, London, and Chicago Stock
Exchanges. For more news and information on Honeywell, please visit

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.

Honeywell International Inc.
Reconciliation of Cash Provided by Operating Activities to Free Cash
Flow, Prior to Cash Pension Contributions (Unaudited)
(Dollars in millions)
                                                2012 Guidance
Cash provided by operating activities           ~$3,600
Expenditures for property, plant and            ~(900)
Free cash flow                                  ~$2,700
Cash pension contributions                      ~1,000
Free cash flow, prior to cash pension           ~$3,700
We define free cash flow as cash provided by operating activities, less cash
expenditures for property, plant and equipment.
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, repay debt obligations prior to their maturities, or make
cash pension contributions. 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 Excluding Pension Mark to
Market Adjustment and Calculation of Segment Profit and Operating Income
Margin Excluding Pension Mark to Market Adjustment
(Dollars in millions)
                                     2012 Guidance
Segment Profit                       ~$5,900
Stock compensation expense (A)       ~(175)
Repositioning and other (A, B)       ~(450)
Pension ongoing expense (A)          ~(50)
Pension mark to market               TBD
adjustment (A)
Other postretirement                 ~(75)
income/(expense) (A)
Operating Income                     ~$5,150
Pension mark to market               TBD
adjustment (A)
Operating Income excluding
pension mark to market               ~$5,150
Segment Profit                       ~$5,900
÷ Sales                              ~$37,500
Segment Profit Margin %              ~15.6%
Operating Income                     ~$5,150
÷ Sales                              ~$37,500
Operating Income Margin %            ~13.7%
Operating Income excluding
pension mark to market               ~$5,150
÷ Sales                              ~$37,500
Operating Income Margin
excluding pension mark to            ~13.7%
market adjustment %
(A) Included in cost of products and services sold and selling, general and
administrative expenses.
(B) Includes repositioning, asbestos, environmental expenses and equity income

Media                          Investor Relations
Robert C. Ferris               Elena Doom
(973) 455-3388                 (973) 455-2222 

SOURCE Honeywell

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