MORRIS TOWNSHIP, N.J., March 8, 2011 /PRNewswire/ -- Honeywell (NYSE: HON) announced today it expects first quarter sales of approximately $8.7 billion, up approximately 12% from prior year, and earnings per share of approximately $0.80, up approximately 23% from prior year, both at the high end of the previous guidance range.
The company also re-affirmed its 2011 earnings guidance of $3.60-3.80 per share, excluding any mark-to-market pension adjustment, and its sales guidance of $35.0-36.0 billion (excluding the impact of the anticipated Discontinued Operations accounting treatment of CPG), and its free cash flow guidance of $3.5-3.7 billion, before any U.S. pension contributions (cash flow from operations of $3.3-3.5 billion, including $1 billion pension contribution).
"We continue to see strength in the global economic recovery and are confident in our outlook for 2011 and beyond," said Honeywell Chairman and Chief Executive Officer Dave Cote. "Honeywell has an established track record of strong cash generation, evidenced by another record free cash flow year in 2010. We've also maintained a balanced approach to capital deployment – continuing to invest in our businesses to drive organic growth, making smart disciplined acquisitions that build upon our great positions in good industries, and returning cash to our shareowners through increased dividends and share repurchases."
Honeywell's Board of Directors has authorized the company to repurchase up to a total of $3 billion of its common stock. Honeywell expects to repurchase outstanding shares from time to time during 2011 to offset the dilutive impact of employee stock based compensation plans. Over the past eight years, the company has returned over $15 billion to shareowners through a combination of dividends and share repurchases.
Honeywell will hold its annual investor conference on Wednesday, March 9 to discuss strategies for its businesses and major markets, including details on its attractive long-term growth outlook. Related presentation materials and Webcast information will be available at www.honeywell.com/investor prior to the investor meeting. Investors can access a replay of the Webcast on the Website shortly after the conclusion of the meeting.
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 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 Cash Provided by Operating Activities to Free Cash Flow
(Dollars in Billions)
Cash Provided by Operating Activities
$3.3 - 3.5
Expenditures for Property, Plant and Equipment
Free Cash Flow
$2.5 - 2.7
U.S. Pension Contributions
Free Cash Flow, excluding U.S. Pension Contributions
$3.5 - 3.7
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.