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HONEYWELL REPORTS $85.1 MILLION NET INCOME, $1.23 EARNINGS PER SHARE IN SECOND QUARTER

 HONEYWELL REPORTS $85.1 MILLION NET INCOME,
 $1.23 EARNINGS PER SHARE IN SECOND QUARTER
 EPS Improves from Year-Earlier Period
 MINNEAPOLIS, July 14 /PRNewswire/ -- Honeywell Inc. (NYSE: HON) today reported net income of $85.1 million, or $1.23 per share, in the second quarter of 1992, up 9.7 percent from $77.6 million, or $1.10 per share, in the same period last year.
 Second-quarter 1992 results included a gain of 11 cents per share from automatic focus patent settlements.
 Worldwide sales in the quarter were $1.49 billion, compared with $1.52 billion in the 1991 second quarter. The fractional decline resulted primarily from slower sales in the company's Space and Aviation segment.
 James J. Renier, chairman and chief executive officer, said Honeywell's results were consistent with expectations.
 "We experienced increased business activity in our Home and Building Control and Industrial businesses, which helped offset soft demand in our Space and Aviation markets," Renier said. "As anticipated, we continue operating in an economy that is showing few signs of sustained, robust recovery.
 "Our attention remains focused on new products and niche acquisitions in our core businesses, customer service, cost control and productivity improvement."
 Renier noted that second-quarter results included an after-tax gain of $7.4 million, or 11 cents per share, from settlements with various companies for their use of patented Honeywell automatic focus camera technology. "We expect to report additional settlements in the third quarter," he said.
 Honeywell's second-quarter operating profit was $157 million, compared with $149.9 million a year earlier.
 Also in the second quarter, the company repurchased $55 million in stock as part of a five-year, $600 million stock buyback program.
 During the quarter, Honeywell announced several key niche acquisitions, including a portion of Finland-based A. Ahlstrom Corporation, strengthening the company's presence in the worldwide pulp- and-paper market; SACDA, based in Canada, providing factory and plant process simulation capability; and Security Inc., a leading home and building security business in the Washington, D.C., area.
 Six-Month Summary.
 In the first half of 1992, Honeywell earned net income of $201.9 million, up 35.1 percent from $149.4 million a year earlier. Sales were $2.97 billion, compared with $2.99 billion last year. Earnings per share were $2.90, compared with $2.11 in the 1991 first half. 1992 results included an after-tax gain of $72.4 million, or $1.04 per share, in autofocus patent settlements. First-half 1992 figures also include an after-tax provision, recorded in the first quarter, of $19.3 million, or 28 cents per share, for costs associated with productivity improvement programs and the anticipated disposition of certain non-strategic product lines.
 Second-Quarter Business Unit Results
 Home and Building Control. Operating profit was $48.2 million, compared with $32.1 million in the year-earlier quarter. Sales were $557.2 million, up from $512 million a year earlier. This segment benefited from improved economic conditions in key markets compared with last year.
 The business reported record orders in the growing target markets of schools and health-care facilities under Honeywell's guaranteed energy- savings program. Overall, orders for Home and Building Control increased slightly.
 Industrial. Operating profit was $45.1 million, compared with $58.1 million a year earlier, and sales were $430.4 million, compared with $412 million in the same period last year. A changing product mix and aggressive price competition resulted in lower margins in industrial automation systems. The company continued investing to establish a strong presence in new markets.
 During the quarter, the company introduced TotalPlant(TM) Open Solutions, a wide-ranging line of products and services that enable manufacturers to fully integrate their plants.
 The components business was helped by improvements in the U.S. economy, while performance stabilized in international markets. Overall, Industrial orders increased moderately from year-earlier levels.
 Space and Aviation. Operating profit increased to $63.6 million, from $60.6 million a year earlier, because of rigorous cost controls, a favorable product mix in military avionics and non-recurring inventory valuation adjustments in commercial flight systems. Sales declined to $460.9 million, from $548.4 in the 1991 second quarter because of lower demand in commercial flight systems.
 Overall, Space and Aviation orders declined significantly primarily because of the expected reduced activity in military markets. Space systems orders increased modestly, while commercial avionics orders declined modestly from year-earlier levels. Renier, noting the cyclical nature of the commercial flight systems business, said the company has anticipated and is prepared for lower jetliner build rates as airlines defer new aircraft purchases.
 Honeywell is a global controls company that provides products, systems and services for homes and buildings, industry, and aviation and space. The company employs 58,000 worldwide and had 1991 sales of $6.2 billion.
 HONEYWELL INC. AND SUBSIDIARIES
 INCOME STATEMENT
 (Unaudited)
 (Dollars in Millions Except Per Share Amounts)
 SECOND QUARTER
 1992 1991
 SALES $1,485.8 $1,520.2 (2.3) pct.
 COSTS AND EXPENSES
 Cost of sales 1,001.4 1,043.1
 Research and development 74.6 76.2
 Selling, general and
 administrative(1) 271.1 269.9
 Interest - net 14.0 15.2
 Equity income (5.4) (5.5)
 -- 1,355.7 1,398.9
 INCOME BEFORE INCOME TAXES 130.1 121.3
 PROVISION FOR INCOME TAXES 45.0 43.7
 NET INCOME $85.1 $77.6 9.7 pct.
 EARNINGS PER COMMON SHARE $1.23 $1.10 11.8 pct.
 (1) Includes autofocus litigation settlements, less related
 expenses, of $12.3 in 1992.
 HONEYWELL INC. AND SUBSIDIARIES
 INCOME STATEMENT
 (Unaudited)
 (Dollars in Millions Except Per Share Amounts)
 SIX MONTHS
 1992 1991
 SALES $2,967.4 $2,989.2 (0.7) pct.
 COSTS AND EXPENSES
 Cost of sales 2,020.7 2,040.7
 Research and development 143.6 147.5
 Selling, general and
 administrative(1) 464.4 544.1
 Interest - net 30.0 28.6
 Equity income (5.3) (5.2)
 -- 2,653.4 2,755.7
 INCOME BEFORE INCOME TAXES 314.0 233.5
 PROVISION FOR INCOME TAXES 112.1 84.1
 NET INCOME $201.9 $149.4 35.1 pct.
 EARNINGS PER COMMON SHARE $2.90 $2.11 37.4 pct.
 AVERAGE NUMBER OF
 COMMON SHARES OUTSTANDING 69,729,034 70,900,259
 (1) Includes autofocus litigation settlements, less related
 expenses, of $120.6 in 1992.
 HONEYWELL INC. AND SUBSIDIARIES
 SALES AND OPERATING PROFIT BY SEGMENT
 (UNAUDITED)
 (Dollars in Millions)
 SECOND QUARTER
 1992 1991
 SALES
 Home and Building Control $557.2 $512.0
 Industrial 430.4 412.0
 Space and Aviation 460.9 548.4
 Other 37.3 47.8
 -- $1,485.8 $1,520.2
 OPERATING PROFIT
 Home and Building Control $48.2 $32.1
 Industrial 45.1 58.1
 Space and Aviation 63.6 60.6
 Other 0.1 (0.9)
 Total operating profit 157.0 149.9
 Interest expense (23.0) (20.7)
 Equity income 5.4 5.5
 General corporate expense (9.3) (13.4)
 Income before income taxes $130.1 $121.3
 SIX MONTHS
 1992 1991
 SALES
 Home and Building Control $1,104.7 $1,030.2
 Industrial 825.0 777.4
 Space and Aviation 973.6 1,102.6
 Other 64.1 79.0
 -- $2,967.4 $2,989.2
 OPERATING PROFIT
 Home and Building Control $94.4 $77.7
 Industrial 75.1 104.7
 Space and Aviation 113.6 119.2
 Other (10.5) (2.9)
 Total operating profit 272.6 298.7
 Interest expense (46.4) (43.3)
 Equity income 5.3 5.2
 General corporate expense 82.5 (27.1)
 Income before income taxes $314.0 $233.5
 -0- 7/14/92
 /CONTACT: Kevin Whalen of Honeywell, 612-870-2524 or 612-687-9244/
 (HON) CO: Honeywell Inc. ST: Minnesota IN: SU: ERN


AL -- MN005 -- 9066 07/14/92 11:42 EDT
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Date:Jul 14, 1992
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