Honeywell's 4th-Quarter Ongoing EPS Is $0.55; Revenue Is $5.9 Billion; Free Cash Flow Jumps 24% To A Record $626 Million.Business Editors MORRIS TOWNSHIP There are several places named Morris Township in the United States:
Honeywell In 1927, the Minneapolis Honeywell Regulator Company was formed as a merger of Alfred Butz' temperature control company (1885) and Mark Honeywell's water heater company (1906). In 1957, Honeywell, along with Ratheon, introduced one of the first computers in the U.S., the Datamatic 1000. (NYSE NYSE See: New York Stock Exchange :HON)-- Renewed Focus On Fundamentals Improving Company's Performance; Company Expects To Deliver $1.3 Billion In Cost Productivity In 2002 Company Incurs 4th-Quarter After-Tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. Charge Of $329 Million To Cover Costs Of Litton Litton can refer to:
Full-Year 2001 Ongoing EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. Is $2.05; Revenue Is $23.7 Billion; Free Cash Flow Is $1.4 Billion Full-Year 2002 EPS Expected To Be Approximately $2.36 Honeywell (NYSE: HON) said today that ongoing fourth-quarter earnings per share (EPS) were $0.55. Fourth-quarter revenue was $5.9 billion. Free cash flow jumped 24% to a record $626 million (excluding $220 million partial payment of Litton lawsuit lawsuit: see procedure; tort. settlement), compared to $504 million in the fourth quarter of the prior year. "Honeywell's fourth-quarter performance shows that our renewed focus on significantly improving the fundamentals of our business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets is beginning to take hold," said Lawrence Lawrence. 1 City (1990 pop. 26,763), Marion co., central Ind., a residential suburb of Indianapolis, on the West Fork of the White River. It has light manufacturing. 2 City (1990 pop. 65,608), seat of Douglas co., NE Kans. A. Bossidy, Honeywell's Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "We met our EPS target and exceeded our revenue expectations in the quarter. Our free-cash-flow performance also surpassed targets, as we continue to reduce our working capital." Poised For Recovery "With the tumultuous 2001 behind us, we are now looking forward with optimism and confidence to Honeywell's future," Bossidy said. "Nowhere are the signs of encouragement more evident than in our worldwide employees, whose dedicated spirit and energy have helped us correct Honeywell's course and prepare the company for recovery and growth." "The near-term near-term adj. Of, for, or involving a short period of time in the near future. economic outlook still presents some difficulties in the first half of the year," Bossidy noted. "However, our Six Sigma- and Digitization-driven productivity engines are ready to help us deliver $1.3 billion in cost productivity this year. "We have implemented the most ambitious cost-reduction initiative in the history of the company," Bossidy continued. "These efforts have already resulted in a $221 million reduction in SG&A spending, the closing of 51 facilities and the elimination of management layers and regional redundancies. On a percentage basis, our SG&A spending reductions have significantly outpaced our volume declines, which will lead to better earnings. In fact, Honeywell now has the best cost structure in its history." "Our improved cost structure makes us confident Honeywell's performance will be better overall in 2002," Bossidy said. "Including new goodwill accounting rules (positive impact of $0.24 per share), we expect full-year 2002 EPS to be approximately $2.36." "We're we're Contraction of we are. we're we are also convinced the company is ready to maximize the benefits of an anticipated economic recovery in the second half of the year. Specifically, our Aerospace franchise is now leaner and stronger than ever before as a result of the aggressive cost actions we've we've Contraction of we have. we've have implemented across the segment," Bossidy added. "Our Automation and Control Solutions businesses are making excellent progress in significantly improving their productivity to become more efficient. And Specialty Materials is seeing improvements in raw material and natural gas costs." "As for growth, we are encouraged by our company-wide opportunities in aviation safety and security, including Spectra(R) fiber's use in hardened cockpit This article is about the flight deck of an aircraft. For other uses, see Cockpit (disambiguation). A cockpit is the area usually nearer the front of a piloted aircraft from which a pilot controls the aircraft. doors, airborne airborne /air·borne/ (ar´born) suspended in, transported by, or spread by air. airborne, adj carried through the air. In health care settings, viruses or bacteria may become airborne, e.g. emergency alert systems and airport security technologies," Bossidy said. "Other promising growth platforms This article or section needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article. include our AS900 engine family, Primus Epic(R) integrated avionics avionics (ā'vēŏn`ĭks), electronic instruments used in air or space flight; also the design and production of such instruments. Early planes had few instruments, but as aviation and aircraft became more complex, so did instrumentation. system, Garrett See also: All pages beginning with Garrett Garrett is a masculine Irish, and Anglo-Saxon first name, or surname meaning "Lord of the spear", "spear brave" or "spear wielder". (R) turbochargers, Home and Away(TM) System, environmentally safer fluorine fluorine (fl  `ərēn, –rĭn), gaseous chemical element; symbol F; at. no. 9; at. wt. 18.998403; m.p. −219.6°C;; b.p. −188.14°C;; density 1. products,
chemical specialties and plant productivity improvement offerings."
Full-year 2001 ongoing EPS was $2.05, with $23.7 billion in revenue. Free cash flow for 2001 was $1.4 billion. Reported loss per share in 2001 was ($0.12). Honeywell said it expects first-quarter 2002 EPS to range from $0.44 to $0.46, which includes the adoption of new goodwill accounting rules. Fourth-Quarter Highlights Fourth-quarter sales growth occurred in Aerospace military aftermarket Aftermarket See: Secondary market. aftermarket See secondary market. and original equipment, Turbochargers, Industry Solutions, Agricultural and Laboratory chemicals, and the company's Spectra(R) fiber due to increased security-related demand. Sales growth was offset by lower sales in Electronic Materials, Control Products and Services, Aerospace Commercial aftermarket and original equipment, Performance Fiber and Automotive Consumer Products. Lower volumes in these businesses reduced fourth-quarter operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: to 12.2% compared to 13.7% in the fourth quarter of 2000. Honeywell reached an agreement with Northrop Grumman Northrop Grumman Corporation (NYSE: NOC) is an aerospace and defense conglomerate that is the result of the 1994 purchase of Grumman by Northrop. The company is the third largest defense contractor for the U.S. to settle the eleven-year-old Litton Industries Named after inventor Charles Litton Sr., Litton Industries was a large defense contractor in the United States, bought by the Northrop Grumman Corporation in 2001. case for $440 million (pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta ). The settlement allows Honeywell to sell ring-laser-gyroscope-based products and certain other inertial in·er·tia n. 1. Physics The tendency of a body to resist acceleration; the tendency of a body at rest to remain at rest or of a body in straight line motion to stay in motion in a straight line unless acted on by an outside force. reference/navigation systems free from any claims from Northrop Nor·throp , John Howard 1891-1987. American biochemist. He shared a 1946 Nobel Prize for discovering methods of producing pure enzymes and virus proteins. . Honeywell is developing the next generation of highly accurate and reliable guidance products based on its proprietary MEMS (MicroElectroMechanical Systems) Tiny mechanical devices that are built onto semiconductor chips and are measured in micrometers. In the research labs since the 1980s, MEMS devices began to materialize as commercial products in the mid-1990s. (Micro-Electro-Mechanical Systems Micro-electro-mechanical systems (MEMS) Systems that couple micromechanisms with microelectronics. Such systems are also referred to as microsystems, and the coupling of micromechanisms with microelectronics is also termed micromechatronics. ) technology. The company incurred a fourth-quarter after-tax charge of $329 million to cover the Litton settlement as well as investments related to British Aerospace's cancellation of its RJX jet program. Reported fourth-quarter EPS was $0.14. Also in the fourth quarter, Honeywell agreed to transfer its global interests in Bendix Bendix may refer to:
-- Honeywell's Primus Epic(R) Control Display System Retrofit (CDS/R) avionics system received FAA approval, enabling it to be retrofitted to business, regional and general aviation aircraft. The highly successful Primus Epic(R) platform is the first to enable pilots to control avionics and aircraft utilities in one integrated platform through a cockpit display and cursor, eliminating a cumbersome array of overhead switches. Since its debut in 1996, Primus Epic(R) has won every new business jet and regional aircraft competition. -- The company's Spectra(R) composite material was selected by C&D Aerospace as the primary ballistic protection material for its new fortified doors for aircraft cockpits. Spectra(R) fiber - used widely in body and vehicular armor, explosion-resistant cargo holds and cut-resistant and recreational products - is one of the world's strongest and lightest synthetic fibers, being pound-for-pound 10 times stronger than steel. -- Honeywell became the first building-systems service firm to implement digitized field automation technology nationwide. The Field Automation Service Technology (FAST) initiative is equipping 1,400 North American building systems service technicians with handheld computers to automate dispatching and record keeping, and improve service. -- As a partial response to the tragic events of September 11, the company said it would jointly develop a system to send continuous live cockpit audio from an aircraft in trouble to authorities on the ground. The system will be available in the second quarter of 2002. -- Honeywell launched the Home & Away(TM) System to tap the burgeoning global market for Internet-enabled integrated control of comfort and security systems in the home. The system integrates the control of temperature, home security, lights, small appliances and web cameras, and it enables homeowners to access and manage their home environments from anywhere in the world via the Internet as well as by telephone or wall panel. Fourth-Quarter Segment Detail Aerospace - The segment's sales were down 13%. The segment saw increases in military aftermarket revenues across its businesses, as well as higher sales in military and government Avionics. Sales growth was offset by lower sales in Commercial aftermarket and original equipment, due primarily to the sharp drop in the commercial aviation industry. The segment was awarded contract wins in the quarter valued at approximately $9 billion, including the Secondary Power Distribution System for the A380 and the more than $5 billion in revenue expected from its participation in Lockheed “Lockheed” redirects here. For the character in Marvel Comics, see Lockheed (comics). For the current company, see . Lockheed Corporation (originally Loughead Aircraft Manufacturing Company) was an American aerospace company originally founded in 1912 Martin's Joint Strike Fighter program The Joint Strike Fighter (JSF) became synonymous with the later F-35 Lightning II, however until 2001 the term was applied to the competition between the Boeing X-32 and Lockheed Martin X-35. . Operating margins were lower primarily due to steep volume decreases in commercial aviation, which were partially offset by aggressive cost-structure improvements, including census reductions in the quarter of approximately 6%. Automation and Control Solutions - The segment's sales were down 3%. Sales in Industry Solutions continued to be higher as a result of increased demand for the company's plant productivity improvement offerings. Sales growth was offset by lower sales in Control Products and Services. Operating margins were driven higher primarily due to aggressive cost reductions and ongoing Six Sigma-driven productivity improvements, which were partially offset by lower volumes in Control Products and Services. Specialty Materials - The segment's sales declined 21%, driven primarily by lower sales in Electronic Materials, due to the continued slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in the electronics markets, as well as Performance Fiber and Nylon nylon, synthetic thermoplastic material characterized by strength, elasticity, resistance to abrasion and chemicals, low moisture absorbency, and capacity to be permanently set by heat. After 10 years of research E. I. System. The segment saw increased sales for security-related applications of Spectra(R) fiber and higher sales of Agricultural and Laboratory chemicals. Operating margins were lower due to volume declines and soft pricing, which were partially offset by lower raw material and energy costs and segment-wide cost reductions and repositioning repositioning Laparoscopic surgery The changing of a Pt's position during a procedure to improve access or visualization of the operative field, which may be linked to complications, as it changes anatomic planes of operation. Cf Laparoscopic surgery. actions, including census reductions. Transportation and Power Systems - The segment's sales were up 2%. Higher sales in Turbochargers and Friction Materials were partially offset by lower sales in Commercial Vehicle Braking Systems and Automotive Consumer Products. Operating margins were up sharply due primarily to the exiting of the micro-turbine business, cost reductions and ongoing productivity improvement programs. Honeywell will webcast its financial analyst conference today beginning at 12:00 noon ET and provide related presentation materials on its website at www.honeywell.com/investor. Honeywell is a US$24-billion diversified diversified (di·verˑ·s technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; automotive products; specialty chemicals A Specialty chemical is a chemical produced for a specialized use. They are produced in lower volume than bulk chemicals, of which petrochemicals, made from oil feedstocks, are the most common. However, both are produced in a chemical plant. ; fibers; plastics; and electronic and advanced materials Advanced Materials is a leading peer-reviewed materials science journal published every two weeks. Advanced Materials includes Communications, Reviews, and Feature Articles from the cutting edge of materials science, including topics in chemistry, physics, . Honeywell employs approximately 115,000 people in 95 countries and is traded on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the symbol HON, as well as on the London, Chicago and Pacific stock exchanges. It is one of the 30 stocks that make up the Dow Jones Industrial Average Dow Jones Industrial Average The best known U.S. index of stocks. A price-weighted average of 30 actively traded blue-chip stocks, primarily industrials including stocks that trade on the New York Stock Exchange. and is also a component of the Standard & Poor's 500 Index. Additional information on the company is available on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at www.honeywell.com. This release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. as defined in Section 21E of the Securities Exchange Act of 1934, including statements about future business operations, financial performance and market conditions. Such forward-looking statements involve risks and uncertainties inherent in business forecasts as further described in our filings under the Securities Exchange Act.
Honeywell International Inc.
Consolidated Statement of Income (Unaudited)
(In millions except per share amounts)
Three Months Ended December 31
2001 2000
Reported Adjusted(B) Reported Adjusted(D)
Net sales $ 5,853 $ 5,853 $ 6,454 $ 6,454
Costs, expenses and other
Cost of goods sold 5,021 (A) 4,481 5,124 (C) 4,751
Selling, general and
administrative expenses 656 656 822 822
Equity in (income) loss
of affiliated companies (12) (12) 39 (C) 2
Other (income) expense 1 1 (9) (9)
Interest and other
financial charges 92 92 116 116
5,758 5,218 6,092 5,682
Income before taxes 95 635 362 772
Tax expense (benefit) (23) 188 108 203
Net income $ 118 $ 447 $ 254 $ 569
Earnings per share of
common stock-basic $ 0.14 $ 0.55 $ 0.32 $ 0.71
Earnings per share of
common stock -
assuming dilution $ 0.14 $ 0.55 $ 0.31 $ 0.70
Weighted average number
of shares
outstanding-basic 815 815 804 804
Weighted average number
of shares outstanding -
assuming dilution 818 818 812 812
(A) Cost of goods sold includes a provision of $440 million for the
settlement of patent infringement, antitrust and other claims by
Litton Industries and a $100 million charge for the write-off of
investments related to a regional jet engine contract
cancellation. Total pretax charges were $540 million (after-tax
$329 million, or $0.40 per share).
(B) Excludes the impact from items in (A) above.
(C) Cost of goods sold includes a provision of $373 million for asset
impairments, environmental and other charges. Equity in (income)
loss of affiliated companies includes a charge of $37 million for
costs principally related to an equity investee's customer claims.
Total pretax charges were $410 million (after-tax $315 million, or
$0.39 per share).
(D) Excludes the impact from items in (C) above.
Honeywell International Inc.
Consolidated Statement of Income (Unaudited)
(In millions except per share amounts)
Twelve Months Ended December 31
2001 2000
Reported Adjusted(B) Reported Adjusted(E)
Net sales $23,652 $23,652 $25,023 $25,023
Costs, expenses and other
Cost of goods sold 20,429 (A) 17,991 19,090 (C) 18,260
Selling, general and
administrative expenses 3,064 (A) 2,913 3,134 3,134
(Gain) on sale of
non-strategic businesses - - (112)(D) -
Equity in (income) loss
of affiliated companies 193 (A) (7) 89 (C) (47)
Other (income) expense (17)(A) (22) (57) (57)
Interest and other
financial charges 405 405 481 481
24,074 21,280 22,625 21,771
Income (loss) before
taxes (422) 2,372 2,398 3,252
Tax expense (benefit) (323) 700 739 959
Net income (loss) $ (99) $1,672 $1,659 $2,293
Earnings (loss) per share
of common stock-basic $(0.12) $ 2.06 $ 2.07 $ 2.86
Earnings (loss) per share
of common stock -
assuming dilution $(0.12) (F) $ 2.05 $ 2.05 $ 2.83
Weighted average number
of shares
outstanding-basic 812 812 800 800
Weighted average number
of shares outstanding -
assuming dilution 812 (F) 817 809 809
(A) Cost of goods sold, selling, general and administrative expenses,
and equity in (income) loss of affiliated companies include
provisions of $2,438, $151 and $200 million, respectively, for
repositioning and other charges. Other (income) expense includes a
net provision of $5 million, consisting of $6 million for a charge
related to the early extinguishment of debt, offset by a $1
million credit recognized upon the adoption of Statement of
Financial Accounting Standards No. 133, "Accounting for Derivative
Instruments and Hedging Activities", as amended (SFAS No. 133),
effective for Honeywell as of January 1, 2001. Total net pretax
charges, including the impact of adopting SFAS No. 133, were
$2,794 million (after-tax $1,771 million, or $2.18 per share).
(B) Excludes the impact from items in (A) above.
(C) Cost of goods sold includes a net provision of $830 million for
asset impairments, repositioning, environmental and other charges.
Equity in (income) loss of affiliated companies includes a
provision of $136 million for costs associated with closing an
affiliate's chemical manufacturing operations and an equity
investee's customer claims. Total net pretax charges were $966
million (after-tax $705 million, or $0.87 per share).
(D) Represents the pretax gain on the sale of the former Honeywell
Inc. TCAS product line (after-tax $71 million, or $0.09 per share)
(E) Excludes the impact from items in (C) and (D) above.
(F) Dilutive securities issuable in connection with stock plans have
been excluded from the calculation of reported loss per share
because their effect would reduce the loss per share.
Honeywell International Inc.
Segment Data
(Dollars in millions)
Net Sales Periods Ended December 31
Three Months Twelve Months
2001 2000 2001 2000
Aerospace $2,338 $2,680 $9,653 $9,988
Automation and Control
Solutions 1,876 1,943 7,185 7,384
Specialty Materials 750 955 3,313 4,055
Transportation and Power
Systems 880 862 3,457 3,527
Corporate 9 14 44 69
Total $5,853 $6,454 $23,652 $25,023
Segment Profit Periods Ended December 31
Three Months Twelve Months
2001 2000 2001 2000
Aerospace $ 393 $ 591 $1,741 $2,195
Automation and Control
Solutions 253 244 819 986
Specialty Materials (5) 34 52 334
Transportation and Power
Systems 111 63 289 274
Corporate (36) (51) (153) (160)
Total Segment Profit 716 881 2,748 3,629
Gain on sale of
non-strategic businesses - - - 112
Equity in income (loss)
of affiliated companies 12 (2) 7 47
Other income (expense) (1) 9 22 57
Interest and other
financial charges (92) (116) (405) (481)
Repositioning and
other charges (540) (410) (2,794) (966)
Income (loss) before
taxes $ 95 $ 362 $ (422) $2,398
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