HONEYWELL INTERNATIONAL INC: Final Results

Honeywell Reports Full Year Sales Up 3% to $37.7 Billion; Proforma Earnings Per 
 Share Up 11% to $4.48 Per Share; Reported Earnings Per Share of $3.69      
- 2012 Earnings Growth Driven By Strong Operational Performance 
- Record Segment Margin Of 15.6%, Up 90 bps YoY; Operating Margin 13.6% Up 160 
bps YoY 
- Pension Mark-to-Market Adjustment As Expected - ($0.79) Per Share 
- Reaffirming 2013 Proforma EPS Guidance Of $4.75-4.95, Up Another 6-11% Over 
2012 
MORRIS TOWNSHIP, N.J., Jan. 25, 2013 -- Honeywell (NYSE: HON) today announced 
its results for the fourth quarter and full year 2012: 
Total Honeywell                                                                 
                                                                           
  ($ Millions, except Earnings Per Share)         FY 2011   FY 2012      Change  
Sales                                              36,529    37,665           
3%     
                                                                           
Segment Margin                                       14.7%     15.6%      90 
bps   
Operating Income Margin(1)                           12.0%     13.6%     160 
bps   
                                                                           
Earnings Per Share (Reported)                       $2.61     $3.69          
41%    
Earnings Per Share (Proforma)(1)                    $4.05     $4.48          
11%   
                                                                           
Cash Flow from Operations                           2,833     3,517          
24%   
Free Cash Flow(2)                                   3,780     3,672          
(3%)    


                                                                               
                                                                               
                                                  4Q 2011   4Q 2012      Change 

Sales                                               9,473     9,581           
1%   


                                                                           
Segment Margin                                       15.1%     15.6%      50 
bps   
Operating Income Margin(1)                           12.9%     13.9%     100 
bps   
                                                                           
Earnings Per Share (Reported)                      ($0.40)    $0.32          
N/A   
Earnings Per Share (Proforma)(1)                    $1.05     $1.10           
5%      
                                                                           
Cash Flow from Operations                           1,477     1,349          
(9%)   
Free Cash Flow(2)                                   1,417     1,311          
(7%)    
                                                                            
                                                                           
1. Proforma, V%/bps Exclude Any Pension Mark-to-Market Adjustment               
                                                                           
2. Free Cash Flow (Cash Flow from Operations Less Capital Expenditures) Prior   
to Cash Pension Contributions               
"Honeywell had another year of terrific performance in 2012," said Honeywell
Chairman and CEO Dave Cote. "In a weak global economy, we grew sales 3% and
earnings by 11%, while expanding margins to record levels and continuing to
generate strong cash flow. We outperformed while also continuing to invest in
seed planting initiatives like new products and services, global growth, cost
competitiveness, and strengthening our key processes -- Honeywell Operating
System, Velocity Product Development™, and Functional Transformation. Our
balanced mix of long- and short-cycle businesses and expansion in high growth
regions has offset lower demand in some of our short-cycle businesses, European
weakness, and foreign exchange headwinds. We've also maintained a strong
long-cycle backlog, now a record $15.8 billion, with new platform wins across
many of our businesses last year. These positive trends, combined with our
great positions in good industries, conservative planning, and the continued
evolution of our internal processes will help Honeywell drive sales, margin
growth, cash generation, and EPS outperformance in 2013 and over the
long-term." 
The company is also reaffirming its full-year 2013 sales and EPS guidance: 
Full Year Guidance                                     


                                                      
                                 2013           Change     
                            Current Guidance   vs. 2012   


                                                  
Sales                       $39.0 - $39.5B      4 - 5%      
                                                  
Segment Margin               15.8 - 16.1%      20 - 50 bps 
                                                  
Operating Income Margin(1)   14.2 - 14.5%      60 - 90 bps 
                                                  
Earnings Per Share(1)       $4.75 - $4.95       6 - 11%     
                                                  
Free Cash Flow(2)              ~$3.7B           ~Flat       
                                                   
1. Proforma, V% / bps Exclude 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 
Segment Performance 
Aerospace       
                                   
 ($ Millions)   FY 2011 FY 2012 % Change 
                                   
Sales            11,475  12,040        5%      
Segment Profit    2,023   2,279       13%     
Segment Margin     17.6%   18.9%  130 bps  
                                    
            4Q 2011 4Q 2012 % Change
Sales             3,047   3,020       (1%)  
Segment Profit      573     601        5%    
Segment Margin     18.8%   19.9%  110 bps  


                                       

  * Sales were down (1%) compared with the fourth quarter of 2011 driven by a
    (6%) decline in Defense and Space, partially offset by a 3% increase in our
    commercial end markets. Commercial original equipment (OE) sales were up 5%
    driven by increased production rates at our major OE customers. Commercial


aftermarket sales were up 3% driven by higher maintenance activity.
  * Segment profit was up 5%, and segment margins expanded 110 bps to 19.9%, 
primarily due to commercial excellence, productivity net of inflation, and 
lower BGA OE payments, partially offset by investments for growth. 
Automation and Control Solutions                         
 ($ Millions)                     FY 2011 FY 2012  % Change
Sales                              15,535  15,880        2%    
Segment Profit                      2,083   2,232        7%    
Segment Margin                       13.4%   14.1%   70 bps   
                                                     
($ Millions)                      4Q 2011 4Q 2012  % Change
Sales                               4,051   4,172        3%      
Segment Profit                        584     645       10%     
Segment Margin                       14.4%   15.5%  110 bps  


                                                         

  * Sales were up 3% compared with the fourth quarter of 2011 as volume growth
    and the favorable impact of acquisitions, net of divestitures was partially
    offset by foreign exchange headwinds. Energy, Safety, and Security was up
    4% organically due to acceleration of growth in Environmental and
    Combustion Controls and continued growth in Scanning & Mobility and
    Security. Process Solutions and Building Solutions and Distribution grew at
    a slower rate, reflecting a more challenging capital investment


environment.
  * Segment profit was up 10% and segment margins were up 110 bps to 15.5% 


    driven by commercial excellence and strong productivity net of inflation
    and other investments for growth, including the favorable impact of
    previously completed restructuring actions.

Performance Materials and Technologies                          
 ($ Millions)                           FY 2011 FY 2012  % Change 
Sales                                     5,659   6,184        9%   
Segment Profit                            1,042   1,154       11%   
Segment Margin                             18.4%   18.7%   30 bps   


                                                            
($ Millions)                            4Q 2011 4Q 2012  % Change 
Sales                                     1,430   1,545        8%   
Segment Profit                              223     210       (6%) 
Segment Margin                             15.6%   13.6% (200 bps) 


                                                                

  * Sales were up 8% reported, 2% organic, compared with the fourth quarter of
    2011, resulting from the Thomas Russell acquisition in UOP, partially
    offset by lower volume of petrochemical and refining catalysts. Advanced
    Materials sales were up 5% driven by new products and applications,


partially offset by challenging end market conditions.
  * Segment profit declined (6%) and segment margins contracted (200 bps) to 


    13.6% in the fourth quarter primarily due to lower catalyst sales in UOP,
    unfavorable price/raws spread in Resins and Chemicals and challenging end
    market conditions, partially offset by productivity net of labor inflation
    and investments for growth.


Transportation Systems                          
 ($ Millions)           FY 2011 FY 2012 % Change  
                                            
Sales                     3,859   3,561       (8%)     
Segment Profit              485     432      (11%)    
Segment Margin             12.6%   12.1%  (50 bps)  
                                             
                                            
 ($ Millions)           4Q 2011 4Q 2012 % Change 
Sales                       944     844      (11%)    
Segment Profit              117     94       (20%)    
Segment Margin             12.4%   11.1% (130 bps) 


                                                

  * Sales were down (11%), down (8%) organic, compared with the fourth quarter
    of 2011, driven by lower European light vehicle production and aftermarket
    sales, partially offset by new platform launches and higher gas turbo


penetration, primarily in the U.S. and China.
  * Segment profit was down (20%) in the fourth quarter and segment margins 


    decreased (130 bps) to 11.1% primarily driven by lower sales volumes and
    price, unfavorable foreign exchange, and ongoing projects to drive
    operational improvement in the Friction Materials business, partially
    offset by productivity benefits.

Honeywell will discuss its results during its investor conference call today
starting at 9:00 a.m. EST. To participate on the conference call, please dial
(800) 862-9098 (domestic) or (785) 424-1051 (international) a few minutes
before the 9:00 a.m. EST start. Please mention to the operator that you are
dialing in for Honeywell's fourth quarter 2012 earnings call or provide the
conference code, HONQ412. You can hear a replay of the conference call from 12:
00 p.m. EST, January 25, until 11:59 p.m. EST, February 1, by dialing (800)
374-1216 (domestic) or (402) 220-0681 (international).

A real-time audio webcast of the presentation can be accessed at 
http://www.honeywell.com/investor , where related materials will be posted 
prior to the presentation. The presentation materials will be in Adobe Acrobat 
format. A replay of the webcast will be available following the presentation 
at the same link listed above for 30 days.

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; automotive
products; turbochargers; and performance 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 
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.

Contacts:                                        


                                             
Media                     Investor Relations  
Robert C. Ferris          Elena Doom              
(973) 455-3388            (973) 455-2222          
rob.ferris@honeywell.com  elena.doom@honeywell.com 


                                                 
                                 Honeywell International Inc
                      Consolidated Statement of Operations (Unaudited)
                             (In millions, except per share amounts) 
                                                                                
               


                                                         Three Months       
 Twelve Months      


                                                                 Ended          
     Ended   


                                                          December 31,       
December 31,    
                                                         2012     2011      
 2012        2011     
                                                                             
           
Product sales                                             $ 7,628   $ 7,478   $ 
29,812    $ 28,745
Service sales                                               1,953     1,995     
 7,853       7,784   
Net sales                                                   9,581     9,473     
37,665      36,529   
                                                                             
           
Costs, expenses and other                                                        
            
  Cost of products sold (A)                             6,302     6,862     
22,929      23,220   
  Cost of services sold (A)                             1,379     1,573     
 5,362       5,336    
                                                        7,681     8,435     
28,291      28,556   
  Selling, general and administrative expenses (A)      1,523     1,616     
 5,218       5,399   
  Other (income) expense                                  (16)      (12)     
(70)        (84)    
  Interest and other financial charges                     87        91      
351         376     


                                                                                
               


                                                        9,275    10,130     
33,790      34,247   
                                                                             
           
Income (loss) from continuing operations before taxes         306      (657)    
 3,875       2,282   
Tax expense (benefit)                                          51      (350)     
944         417      
                                                                             
           
Income (loss) from continuing operations after taxes          255      (307)    
 2,931       1,865    
                                                                             
           
Income from discontinued operations after taxes                -         -       
-           209      
                                                                             
           
Net income (loss)                                             255      (307)    
 2,931       2,074    
                                                                             
           
Less: Net income attributable to the noncontrolling       
 interest                                                       4         3      
 5           7   
Net income (loss) attributable to Honeywell                 $ 251    $ (310)   
$ 2,926     $ 2,067  
                                                                             
             
Amounts attributable to Honeywell:                                               
            
Income (loss) from continuing operations less net income                      
              
attributable to the noncontrolling interest               251      (310)    
 2,926       1,858    
Income from discontinued operations                         -         -       
-           209      
Net income (loss) attributable to Honeywell              $ 251    $ (310)   
$ 2,926     $ 2,067  
                                                                             
           
Earnings per share of common stock - basic:                                      
           
  Income (loss) from continuing operations                   0.32     (0.40)    
  3.74        2.38  
  Income from discontinued operations                          -        -        
-         0.27  
  Net income (loss) attributable to Honeywell              $ 0.32   $ (0.40)    
$ 3.74      $ 2.65   
                                                                             
           
Earnings per share of common stock - assuming dilution:                          
           
  Income (loss) from continuing operations                   0.32     (0.40)    
  3.69        2.35  
  Income from discontinued operations                         -         -        
-          0.26  
  Net income (loss) attributable to Honeywell              $ 0.32   $ (0.40)    
$ 3.69      $ 2.61  
                                                                             
           
Weighted average number of shares outstanding-basic         787.2     774.7     
 782.4       780.8   
                                                                             
           
Weighted average number of shares outstanding -                                  
           
 assuming dilution                                          796.4     784.3     
 791.9       791.6   


                                                                                
               


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


                                                          2012(1)    
2011(1)   2012(1)     2011(1)    
                                                                             
           
 Earnings per share of common stock - assuming dilution     $ 0.32   $ (0.40)   
 $ 3.69      $ 2.61  
 Mark-to-market pension expense                               0.78      1.45     
0.79        1.44     
                                                                             
           
 Earnings per share of common stock - assuming dilution,                         
           
  excluding mark-to-market pension expense                  $ 1.10    $ 1.05    
 $ 4.48      $ 4.05   


                                                                                
               
                                                                                


           
 1- EPS utilizes weighted average shares outstanding and the effective tax rate  
           
 for the period. Mark-to-market uses a blended tax rate of 35.0% and 36.9% for   
           
 2012 and 2011, respectively                                                     


               
                                        Honeywell International Inc 
                                      Segment Data (Unaudited)      
                                        (Dollars in millions)
                                                                               


                                    Three Months Ended       Twelve Months 
Ended      
                                        December 31,              December 
31,      
Net Sales                                 2012        2011          2012        
 2011   
                                                                           
Aerospace                             $   3,020   $   3,047    $   12,040   $   
 11,475 
                                                                           
Automation and Control Solutions          4,172       4,051        15,880       
 15,535      
                                                                           
Performance Materials and Technologies    1,545       1,430         6,184       
  5,659    
                                                                           
Transportation Systems                      844         944         3,561       
  3,859     
                                                                           
Corporate                                     -           1            -         


      1   
    


 Total                            $   9,581   $   9,473    $   37,665    $  
 36,529  
Reconciliation of Segment Profit to Income From Continuing Operations Before 
Taxes  
                                                                            
                                  Three Months Ended       Twelve Months 
Ended      
                                        December 31,             December 
31,     
                                                                           
Segment Profit                            2012        2011         2012         
2011      
                                                                           
Aerospace                            $      601  $      573   $     2,279  $    
 2,023 
                                                                           
Automation and Control Solutions            645         584         2,232       
 2,083     
                                                                           
Performance Materials and Technologies      210         223         1,154       
 1,042     
                                                                           
Transportation Systems                       94         117           432        
485      
                                                                           
Corporate                                   (54)        (68)         (218)      
  (276)       
                                                                            
 Total Segment Profit                 1,496       1,429         5,879       
 5,357       
                                                                            
                                                                           
Other income (expense) (A)                    7          (3)           25        
33      
Interest and other financial charges        (87)        (91)         (351)      
  (376)   
Stock compensation expense (B)              (39)        (39)         (170)      
  (168)  
Pension ongoing expense (B)                  (7)        (22)          (36)      
  (105)  
Pension mark-to-market expense (B)         (957)     (1,802)         (957)      
(1,802) 
Other postretirement 
 income/(expense) (B)                       (20)        (23)          (72)       
86     
Repositioning and other charges (B)         (87)       (106)         (443)      
  (743)   
Income (loss) from continuing 
 operations before taxes             $      306  $     (657)  $     3,875   $   
 2,282  
                                                                            
(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,   
    
                                                 2012               2011        


  
ASSETS                                                                          
                                                                           
Current assets:                                                                 


                                                                               
    Cash and cash equivalents              $         4,634   $           3,698 
    Accounts, notes and other receivables            7,429               7,228  
        Inventories                                      4,235               4,264  
    
    Deferred income taxes                              669                 460  
    Investments and other current assets               631                 484  
          Total current assets                         17,598              16,134  
      


                                                                           
Investments and long-term receivables                  623                 494   
Property, plant and equipment - net                  5,001               4,804   
Goodwill                                            12,425              11,858   
Other intangible assets - net                        2,449               2,477   
Insurance recoveries for asbestos related                   
 liabilities                                           663                 709   
Deferred income taxes                                1,889               2,132   


    Other assets                                         1,205               1,200  
                                                                                 
       Total assets                         $       41,853    $         39,808  
                                                                               


                                                                           
LIABILITIES AND SHAREOWNERS' EQUITY                                            
Current liabilities:                                                            


    Accounts payable                       $         4,736   $           4,738 
    Short-term borrowings                               76                  60  
    Commercial paper                                   400                 599  
    Current maturities of long-term debt               625                  15
    Accrued liabilities                              7,208               6,863  
       Total current liabilities                    13,045              12,275  


                                                                             
Long-term debt                                       6,395               6,881   
Deferred income taxes                                  628                 676   
Postretirement benefit obligations other             
 than pensions                                       1,365               1,417   
Asbestos related liabilities                         1,292               1,499   
Other liabilities                                    5,913               6,158   
   
Redeemable noncontrolling interest                     150                 -     
Shareowners' equity                                 13,065              10,902   


      
                                                                               
                                                                               
       Total liabilities, redeemable                                           
        noncontrolling interest and          
        shareowners' equity                $        41,853    $         39,808  
    
                                                                               
                                               Honeywell International Inc


                                Consolidated Statement of Cash Flows 
(Unaudited)    


                                                  (Dollars in millions)         
                                                                                


                                                                         
Three Months       Twelve Months      
                                                                            
Ended               Ended          
                                                                         
December 31,         December 31,       
                                                                       2012  
 2011       2012     2011     
Cash flows from operating activities:                                            
                                 
Net income (loss) attributable to Honeywell                         $    
251  $   (310)  $ 2,926   $ 2,067   


    Adjustments to reconcile net income (loss) attributable to 
     Honeywell to net cash provided  by operating activities: 
                                                                    


    Depreciation and amortization                                        
245       253       926       957       
    Gain on sale of non-strategic businesses and assets                   
(2)       (9)       (5)     (362)     
    Repositioning and other charges                                       
87       106       443       743       
    Net payments for repositioning and other charges                    
(151)     (133)     (503)     (468)     
    Pension and other postretirement expense                             
984     1,847     1,065     1,823     
    Pension and other postretirement benefit payments                   
(295)     (315)   (1,183)   (1,883)   
    Stock compensation expense                                            
39        39       170       168       
    Deferred income taxes                                               
(235)     (528)       84      (331)     
    Excess tax benefits from share based payment arrangements            
(28)      (11)      (56)      (42)      
    Other                                                                 
69       233       108       289       


        Changes in assets and liabilities, net of the effects of                
            
         acquisitions and divestitures:                                         
              
                                                                                
             


       Accounts, notes and other receivables                              
41       117      (119)     (316)     
       Inventories                                                        
78       130        25      (310)     
       Other current assets                                               
(1)       78       (78)       25        
       Accounts payable                                                  
207       162       (13)      527       
       Accrued liabilities                                                
60      (182)     (273)      (54)      
                                                                             
                      
Net cash provided by operating activities                                  
1,349     1,477     3,517     2,833     
                                                                           
Cash flows from investing activities:                                         
                                                                            
Expenditures for property, plant and equipment                          
(298)     (332)     (884)     (798)     
Proceeds from disposals of property, plant and equipment                   
3         3         5         6       
Increase in investments                                                 
(220)      (58)     (702)     (380)     
Decrease in investments                                                  
272        66       559       354       
Cash paid for acquisitions, net of cash acquired                        
(376)     (346)     (438)     (973)   
Proceeds from sales of businesses, net of fees paid                        
3       (14)       21     1,156  
Other                                                                     
53       (43)       11        24    
                                                                             
                     
Net cash used for investing activities                                      
(563)     (724)   (1,428)     (611)     
                                                                             
              
Cash flows from financing activities:                                            
               
Net (decrease)/increase in commercial paper                             
(499)     (101)     (199)      300       
Net increase/(decrease) in short-term borrowings                           
3         2        22        (2)    


    Payment of debt assumed with acquisitions                                 - 
       (33)       -        (33)     


Proceeds from issuance of common stock                                   
163        72       342       304       
Proceeds from issuance of long-term debt                                  
16         1       102     1,390     
Payments of long-term debt                                                
(1)     (500)       (1)     (939)     
Excess tax benefits from share based payment arrangements                 
28        11        56        42      
Repurchases of common stock                                             
(317)      (76)     (317)   (1,085)   
Cash dividends paid                                                     
(331)     (295)   (1,211)   (1,091)   
                                                                             
                                
Net cash used for financing activities                                      
(938)     (919)    (1,206)  (1,114)   
                                                                             
                 
Effect of foreign exchange rate changes on cash and cash equivalents          
26       (21)        53      (60)    
Net (decrease)/increase in cash and cash equivalents                        
(126)     (187)       936    1,048    
Cash and cash equivalents at beginning of period                           
4,760     3,885      3,698    2,650    
Cash and cash equivalents at end of period                               $ 
4,634   $ 3,698    $ 4,634  $ 3,698   


                                                                                
    
                                                                                
                                      Honeywell International Inc  


          Reconciliation of Cash Provided by Operating Activities to Free 
Cash Flow,      


                           Prior to Cash Pension Contributions (Unaudited)      
                                              (Dollars in millions)     
                                                                               


                                                       Three Months Ended    
Twelve Months Ended     


                                                              December 31,      
        December 31,        
                                                          2012         2011     
    2012          2011      
                                                                               


                                                                           
Cash provided by operating activities                  $     1,349  $  1,477    
$      3,517  $    2,833 
                                                                           
Expenditures for property, plant and equipment                (298)     (332)    
    (884)       (798)      
                                                                           
Free cash flow                                         $     1,051  $  1,145    
$      2,633  $    2,035 
                                                                           
Cash pension contributions                                     260       272     
   1,039       1,745      
                                                                           
Free cash flow, prior to cash pension contributions    $     1,311  $  1,417    
$      3,672  $    3,780 
                                                                            
                                                                           
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 
(Unaudited)    


                                      (Dollars in millions)        
                                                                               


                                           Three Months Ended       Twelve 
Months Ended      
                                               December 31,              
December 31,              


                                                                               
                                               2012          2011         2012  
       2011        


                                                                           
Segment Profit                            $      1,496  $    1,429   $    5,879 
 $   5,357    
                                                                           
Stock compensation expense (A)                     (39)        (39)        
(170)      (168)        
                                                               
Repositioning and other (A, B)                     (96)       (121)        
(488)      (794)        
                                                                     
Pension ongoing expense (A)                         (7)        (22)         
(36)      (105)        
                                                                           
Pension mark-to-market adjustment (A)             (957)     (1,802)        
(957)    (1,802)      
                                                                           
Other postretirement income/(expense) (A)          (20)        (23)         
(72)        86           
                                                                           
Operating Income (Loss)                   $        377  $     (578)  $    4,156 
 $   2,574    
                                                                    
                                                                           
Pension mark-to-market adjustment (A)     $       (957) $   (1,802)  $     
(957) $  (1,802)   
                                                                           
Operating Income excluding pension            
 mark-to-market adjustment                $      1,334  $    1,224   $    5,113 
 $   4,376     
                                                                             
Segment Profit                            $      1,496  $    1,429   $    5,879 
 $   5,357   
÷ Sales                                   $      9,581  $    9,473   $   
37,665  $  36,529    
Segment Profit Margin %                           15.6%       15.1%        
15.6%      14.7%        
                                                                           
Operating Income (Loss)                   $        377  $     (578)  $    4,156 
 $   2,574   
÷ Sales                                   $      9,581  $    9,473   $   
37,665  $  36,529    
Operating Income (Loss) Margin %                   3.9%       (6.1%)       
11.0%       7.0%         
                                                                           
Operating Income excluding pension                                               
            
 mark-to-market adjustment                $      1,334  $    1,224   $    5,113 
 $   4,376  
÷ Sales                                   $      9,581  $    9,473   $   
37,665  $  36,529    
Operating Income Margin excluding 
 pension mark-to-market adjustment %              13.9%       12.9%        
13.6%      12.0%  


                                                                              
                                                                               


                                                                           
(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.                                                                         

SOURCE  Honeywell 
                                                                           
END 
-0- Jan/25/2013 13:50 GMT