Business News

Honeywell Reaffirms 2008 Outlook; Issues 2009 Financial Guidance

Wednesday 17. December 2008 - Honeywell (NYSE: HON) today reaffirmed its 2008 financial guidance. The company expects sales of approximately $36.6 billion, earnings per share of $3.76-3.80, and free cash flow of $3.2 billion, excluding cash taxes relating to the sale of the Consumable Solutions business (cash flow from operations of $4.0 billion).

In 2009, the company forecasts sales of $33.6-35.3 billion and earnings per share of $3.20-3.55. Cash flow from operations is expected to be $3.9-4.1 billion and free cash flow (cash flow from operations less capital expenditures) is expected to be $3.0-3.2 billion.

“Honeywell expects to finish the year within our guidance range, completing a strong year of growth in a tough environment,” said Honeywell Chairman and Chief Executive Officer Dave Cote. “Overall, 2008 sales will be up 6%, EPS is expected to increase approximately 20%, and free cash flow conversion will be greater than 100% of net income. We won a number of large multi-year contracts, introduced attractive new products, and continued to refine our portfolio with great positions in good industries.”

“Great companies perform well even in tough economic times and we are well positioned to continue to do that again in 2009,” continued Cote. “We expect to derive benefits from the repositioning actions taken over the past several years, as well as from our key initiatives including the Honeywell Operating System, Velocity Product Development, and Functional Transformation. In addition, we will continue to be a strong generator of free cash flow in 2009, which will provide us with ongoing financial flexibility.”