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HONEYWELL OUTLINES CHANGES IN ANTICIPATION OF MARKET TRENDS; EXECUTIVES MEET WITH SECURITIES ANALYSTS

 HONEYWELL OUTLINES CHANGES IN ANTICIPATION OF MARKET TRENDS;
 EXECUTIVES MEET WITH SECURITIES ANALYSTS
 NEW YORK, Nov. 10 /PRNewswire/ -- Market environments are changing, and Honeywell Inc. (NYSE: HON) is changing to take advantage of growing opportunities around the world, the company's senior executives told financial analysts today.
 "Our customers are changing the way they do business, in response to the world economy, competitive pressures, the demands of their markets, environmental and safety requirements and new technologies," Honeywell Chairman and Chief Executive Officer James J. Renier told analysts. "This increases Honeywell's opportunities in products and systems, and also in technical services -- system design, installation and start-up, training and, in a growing number of cases, site management."
 Renier was joined in morning-long presentations by four of the company's senior executives: Michael R. Bonsignore, executive vice president and chief operating officer, International and Home and Building Control; D. Larry Moore, executive vice president and chief operating officer, Industrial and Space and Aviation; Christopher J. Steffen, executive vice president and chief financial and administrative officer; and Jean-Pierre Rosso, president of Home and Building Control.
 They outlined current-year performance, the outlook for 1993 and Monday's announcement of company initiatives. That announcement included an 8 percent dividend increase, an accelerated share repurchase program and a two-for-one stock split. In addition, the company said it would partly offset $273 million in pre-tax proceeds from autofocus patent settlements this year with a pre-tax provision of approximately $100 million to reposition and streamline its three business segments.
 A summary of the presentations follows. Overview.
 Steffen, explaining Monday's actions, said the company is further demonstrating its commitment to improving shareholder value. He also said the company is positioning its Home and Building Control and Industrial businesses to take advantage of emerging trends in global markets, while preparing for further potential downsizing in the Space and Aviation businesses, which is in a cyclical decline.
 Honeywell expects a soft global economy through the first half of 1993, followed by some improvement, he said. Steffen said he is comfortable with current analyst earnings estimates of $5 per share in 1993, but cautioned that performance would be subject to economic conditions.
 Bonsignore said many of the company's strongest growth opportunities are outside the United States. He focused on three areas of significant potential: Eastern Europe, Latin America and East Asia, and said he sees growth opportunities in energy conservation and industrial productivity.
 "Honeywell's international operations represent a core competency that provides a significant competitive advantage," he said. Home and Building Control.
 A key strategy in this business, which has a large worldwide base of installed products, is to increase the number of products and services sold to those customers, Bonsignore said.
 In Building Control, the company will soon introduce a new- generation technology platform that will create economies of scale, integrate products from other vendors and satisfy customer needs for simplicity and ease of use.
 The business this year was helped by strong growth in vertical markets, such as schools and health-care facilities, Rosso said. In some markets, Honeywell has pioneered a guaranteed savings plan that enables customers to upgrade building systems without any up-front capital investment.
 In the home market, the company has established itself as the leader in home automation with its recently introduced TotalHome system, which integrates several functions to provide comfort, convenience and security in the home, Bonsignore said.
 "A broad look at the Home and Building Control business shows that our markets have changed -- as have the priorities of our customers," Bonsignore said. "Honeywell is responding with new technologies, a better organization and strategies seizing the excellent growth opportunities that exist." Industrial.
 The marketplace is changing in Industrial, as well, as customers seek suppliers with consistent products and services worldwide, Moore said. Fundamental changes in technology are also occurring, he said, and Honeywell is investing to be at the leading edge of the changes.
 Moore said Industrial's growth strategies include pursuing vertical markets worldwide, such as refineries, chemicals, pulp-and-paper processing and power generation.
 New product introductions and strategic acquisitions strengthened the business in 1992, he said. "We are offering customers plantwide control with one-stop convenience through our TotalPlant solutions," he said.
 Moore also discussed the recent strategic alliance with GE to market complementary industrial components. Space and Aviation.
 This business, which provides avionics and other flight systems, is affected by declines in commercial aircraft production, reduced defense spending and flat NASA budgets. Moore said he expects the cyclical decline in commercial avionics to rebound in 1995 with increases in aircraft production as airlines invest in new equipment.
 "In the short term, we are addressing business challenges by modifying our


operations to meet the needs of the market. And we will focus on continuing to be a strong, profitable supplier, even though the markets are not growing," Moore said. "In the long term, our outlook is very positive, particularly in commercial aviation."
 Honeywell, with its unique systems integration capability, is well positioned to take advantage of an increasing emphasis on high- technology, high-performance, complete avionics systems, he said. The company provides integrated avionics on the McDonnell Douglas MD-11, and is developing a new-generation avionics package for the new Boeing 777.
 Said Renier: "Honeywell is weathering a tough economy because we are even tougher. We've made advanced technology pay off with profitable products. We've created strategies that prosper in a harsh business climate. In fact, our businesses are growing faster than their markets. We will make prudent investments that will maximize our opportunities. It is our objective to make them pay maximum returns to our shareholders."
 Honeywell is a global controls company that provides products, systems and services to homes and buildings, industry, and aviation and space. The company employs 58,000 people worldwide and had 1991 sales of $6.2 billion.
 -0- 11/10/92
 /CONTACT: Kevin Whalen of Honeywell, 212-838-8000 or 612-870-2701/
 (HON) CO: Honeywell Inc. ST: Minnesota IN: SU:


KH -- MN006 -- 9313 11/10/92 13:27 EST
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