Honeywell Reaffirms Full-Year 2011 Financial Guidance

Company Also Updates Third Quarter Outlook

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Sep 22, 2011, 08:15 ET

MORRIS TOWNSHIP, N.J., Sept. 22, 2011 /PRNewswire/ -- Honeywell (NYSE: HON) will meet with investors today at the Citi Global Industrials Conference and reaffirm its full-year 2011 financial guidance. The company expects:

2011 sales of $36.1-36.7 billion, up 12-14% over 2010
- Excludes the divested Consumer Products Group business (CPG), treated as discontinued operations
2011 proforma earnings per share of $3.85-4.00, up 28-33% over 2010
- Includes discontinued operations of approximately $0.25
- Excludes any mark-to-market pension adjustments
Maintaining 2011 free cash flow guidance of $3.5-3.7 billion
- Excludes any U.S. cash pension contributions
3Q11 sales in the range of $9.1-9.4 billion, up 12-15%
- Healthy organic growth anticipated – 7 to 9%
3Q11 earnings of $0.96-1.01 per share – expect earnings near high-end of range
- Includes earnings from discontinued operations (CPG) and assumes full deployment of after-tax gains from sale of CPG (~$165M) and OPEB curtailments (~$80M)

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

Honeywell International (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 specialty 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.

Honeywell International Inc.
Reconciliation of Earnings per share to Earnings per share, excluding the mark-to-market pension adjustment (Unaudited)
(Dollars in millions, except per share amounts)

	2010

Net Income Attributable to Honeywell	$ 2,022

Mark-to-Market pension adjustment, net of tax	319

Net Income Attributable to Honeywell,
excluding mark-to-market pension adjustment	$ 2,341



	2010 (1)

Earnings per share of common stock - assuming dilution	$ 2.59

Mark-to-market pension adjustment	0.41

Earnings per share of common stock - assuming dilution, excluding
mark-to-market pension adjustment	$ 3.00

(1) EPS utilizes weighted average shares outstanding and the effective tax rate for the period. Mark-to-market uses a blended tax rate of 32.3%.

We believe that earnings per share of common stock-assuming dilution, excluding the mark-to-market pension adjustment is useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.

Honeywell International Inc.
Reconciliation of Cash Provided by Operating Activities to Free Cash Flow
(Dollars in billions)


	2011 Guidance

Cash provided by operating activities	$2.9-3.1

Expenditures for property, plant and equipment	~ (0.80)

Free cash flow	$2.1-2.3

U.S. Pension Cash Contributions (1)	~1.4

Free cash flow, excluding U.S. pension cash contributions	$3.5-3.7

(1) Represents cash contributions to date.

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, or repay debt obligations prior to their maturities. 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.