TIDMHON 
 
Honeywell Reports EPS Of $1.53, Adjusted EPS Of $1.26; Delivers $1.5 Billion Of 
                              Operating Cash Flow 
 
- Delivered $500 Million of Cost Savings in the Quarter; Funded Over $250 
Million of Repositioning to Drive Further Savings in Second Half and 2021 
 
- Generated $1.5 Billion of Operating Cash Flow, $1.3 Billion of Free Cash 
Flow, Adjusted Conversion(1) of 140%; Further Strengthened Balance Sheet 
 
- Reported Record High Orders and Backlog in Safety and Productivity Solutions 
Driven by Triple-Digit Growth in Intelligrated and Personal Protective 
Equipment 
 
- Launched Numerous Innovative Healthy Offerings to Address COVID-19-Related 
Customer Needs 
 
CHARLOTTE, N.C., July 24, 2020 -- Honeywell (NYSE: HON) today announced results 
for the second quarter of 2020, which were significantly impacted by the 
COVID-19 pandemic and oil price volatility. 
 
The company reported a second-quarter sales decline of 19%, down 18% organic, 
operating margin contraction of 550 basis points, and segment margin 
contraction of 280 basis points, with adjusted earnings per share2 of $1.26. 
 
"The second quarter was a challenging one, but we executed on the three things 
that will enable us to weather this downturn: aggressively managing cost, 
driving sales growth where demand is strong, and investing in exciting new 
technologies that, through careful attention to customer and end-user needs, 
will help keep people safe when they get back to the workplace, back to play, 
back to travel, and back to life," said Darius Adamczyk, chairman and chief 
executive officer of Honeywell. 
 
"In terms of cost management, we delivered $500 million in savings from the 
first phase of cost actions we announced earlier this year, and we funded over 
$250 million of repositioning in the quarter. In addition, we developed a 
second phase of cost actions that, when combined with our previously announced 
plan, will generate $1.4 billion to $1.6 billion of cost savings during 2020. 
We further enhanced our financial flexibility this quarter by issuing $3 
billion of bonds at attractive rates, reducing our term loan from $6 billion to 
$3 billion, and fully drawing the remaining balance. We ended the quarter with 
$15.1 billion of cash and short-term investments on hand and an overfunded 
pension plan," Adamczyk said. 
 
"We also remain focused on driving sales growth in areas that have not been as 
impacted by the current downturn. In the second quarter, our businesses serving 
the defense, warehouse automation, and personal protective equipment industries 
exhibited outstanding performance. Orders for Intelligrated were $1.2 billion 
in the quarter, up triple-digits year-over-year, positioning the business for 
continued growth. We committed approximately $250 million of incremental growth 
capital expenditures compared to our previous allocated budget for new projects 
to accelerate our investments in personal protective equipment, Intelligrated, 
and other growth areas," Adamczyk continued. "With an exceptional, diverse 
portfolio of technologies that improve safety and help our customers to be more 
efficient, Honeywell is uniquely equipped to support our customers in the 
post-COVID world. We are actively investing in and introducing new solutions, 
such as an efficient and effective ultraviolet light cleaner for aircraft, 
temperature and PPE compliance monitoring solutions, technologies that can help 
building owners comply with new hygiene and social distancing policies, and a 
new pharmaceutical packaging system for bottles and vials that preserves 
shelf-life and drug efficacy. 
 
"Our focus on sales, cost, and optimizing working capital, combined with our 
diverse portfolio and strong balance sheet, will enable Honeywell to adapt to 
and execute through the downturn. I am confident we will emerge well-positioned 
for the economic recovery to come," concluded Adamczyk. 
 
Due to the evolving nature of the COVID-19 pandemic and related supply chain 
and market disruptions, Honeywell previously announced that it has suspended 
providing full financial guidance until the economic impact of COVID-19 
stabilizes. The company expects ongoing top-line challenges due to the current 
market conditions, particularly in the aerospace and oil and gas sectors. 
 
Second-Quarter Performance 
 
Honeywell sales for the second quarter were down 19% on a reported basis and 
down 18% on an organic basis. The difference between reported and organic sales 
primarily relates to the impact of foreign currency translation. The 
second-quarter financial results can be found in Tables 1 and 2. 
 
Aerospace sales for the second quarter were down 27% on an organic basis driven 
by lower commercial aftermarket demand due to steep declines in flight hours, 
reduced volumes in commercial original equipment, and the 737 MAX impact in air 
transport original equipment, partially offset by continued strength in the 
Defense and Space business. Segment margin contracted 510 basis points to 20.8% 
driven by lower volumes and sales mix. 
 
Honeywell Building Technologies sales for the second quarter were down 17% on 
an organic basis driven by lower demand for security, building management, and 
fire products, and delays in Building Solutions projects in key verticals. 
Segment margin expanded 50 basis points to 21.2%. Margin performance was driven 
by commercial excellence and productivity actions. 
 
Performance Materials and Technologies sales for the second quarter were down 
17% on an organic basis driven by volume declines in products, including 
thermal solutions and smart energy, in Process Solutions; lower gas processing 
projects, catalyst shipments, and licensing due to softness in the oil and gas 
sector in UOP; and lower automotive refrigerant volumes in Advanced Materials, 
partially offset by strength in specialty products. Segment margin contracted 
460 basis points to 18.9% driven by the impact of lower sales volumes, 
partially offset by productivity actions. 
 
Safety and Productivity Solutions sales for the second quarter were up 1% on an 
organic basis driven by double-digit Intelligrated growth and demand for 
respiratory personal protective equipment, partially offset by lower 
short-cycle sales volumes in sensing and IoT, productivity products, and gas 
sensing. Record high bookings of $0.7 billion in PPE and $1.2 billion in 
Intelligrated drove orders growth up approximately 90% year-over-year. Backlog 
was up over 100% year-over-year, including an all-time high Intelligrated 
backlog of over $2 billion. Segment margin expanded 150 basis points to 13.8% 
driven by productivity, net of inflation, and commercial excellence. 
 
Conference Call Details 
 
Honeywell will discuss its second-quarter results and third-quarter outlook 
during an investor conference call starting at 8:30 a.m. Eastern Daylight Time 
today. To participate on the conference call, please dial (866) 548-4713 
(domestic) or (323) 794-2093 (international) approximately ten minutes before 
the 8:30 a.m. EDT start. Please mention to the operator that you are dialing in 
for Honeywell's second-quarter 2020 earnings call or provide the conference 
code HON2Q20. The live webcast of the investor call as well as related 
presentation materials will be available through the Investor Relations section 
of the company's website (www.honeywell.com/investor). Investors can hear a 
replay of the conference call from 12:30 p.m. EDT, July 24, until 12:30 p.m. 
EDT, July 31, by dialing (888) 203-1112 (domestic) or (719) 457-0820 
(international). The access code is 7938730. 
 
TABLE 1: SUMMARY OF HONEYWELL FINANCIAL RESULTS 
 
                                     2Q 2020  2Q 2019   Change 
 
Sales                                 7,477    9,243    (19%) 
 
Organic Growth                                          (18%) 
 
Segment Margin                        18.5%    21.3%   -280 bps 
 
Operating Income Margin               13.6%    19.1%   -550 bps 
 
Earnings Per Share                    $1.53    $2.10    (27%) 
 
Adjusted Earnings Per Share2          $1.26    $2.10    (40%) 
 
Cash Flow from Operations             1,480    1,678    (12%) 
 
Operating Cash Flow Conversion        137%     109%      28% 
 
Free Cash Flow                        1,253    1,507    (17%) 
 
Adjusted Free Cash Flow3              1,253    1,535    (18%) 
 
Adjusted Free Cash Flow Conversion1   140%     100%      40% 
 
TABLE 2: SUMMARY OF SEGMENT FINANCIAL RESULTS 
 
AEROSPACE                                        2Q 2020    2Q 2019     Change 
 
Sales                                             2,543      3,508      (28%) 
 
Organic Growth                                                          (27%) 
 
Segment Profit                                     528        907       (42%) 
 
Segment Margin                                    20.8%      25.9%     -510 bps 
 
HONEYWELL BUILDING TECHNOLOGIES 
 
Sales                                             1,177      1,450      (19%) 
 
Organic Growth                                                          (17%) 
 
Segment Profit                                     250        300       (17%) 
 
Segment Margin                                    21.2%      20.7%      50 bps 
 
PERFORMANCE MATERIALS AND TECHNOLOGIES 
 
Sales                                             2,218      2,735      (19%) 
 
Organic Growth                                                          (17%) 
 
Segment Profit                                     419        644       (35%) 
 
Segment Margin                                    18.9%      23.5%     -460 bps 
 
SAFETY AND PRODUCTIVITY SOLUTIONS 
 
Sales                                             1,539      1,550       (1%) 
 
Organic Growth                                                            1% 
 
Segment Profit                                     213        191        12% 
 
Segment Margin                                    13.8%      12.3%     150 bps 
 
1Adjusted free cash flow conversion excludes impacts from separation costs 
related to the spin-offs of $28M in 2Q19 and 2Q20 favorable resolution of a 
foreign tax matter related to the spin-off transactions 
 
2Adjusted EPS and adjusted EPS V% exclude 2Q20 favorable resolution of a 
foreign tax matter related to the spin-off transactions 
 
3Adjusted free cash flow excludes impacts from separation costs related to the 
spin-offs of $28M in 2Q19 
 
Honeywell (www.honeywell.com) is a Fortune 100 technology company that delivers 
industry specific solutions that include aerospace products and services; 
control technologies for buildings and industry; and performance materials 
globally. Our technologies help everything from aircraft, buildings, 
manufacturing plants, supply chains, and workers become more connected to make 
our world smarter, safer, and more sustainable. For more news and information 
on Honeywell, please visit www.honeywell.com/newsroom. 
 
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, technological, and COVID-19 public health 
factors affecting our operations, markets, products, services and prices. Such 
forward-looking statements are not guarantees of future performance, and actual 
results, and other developments, including the potential impact of the COVID-19 
pandemic, and business decisions may differ from those envisaged by such 
forward-looking statements. Any forward-looking plans described herein are not 
final and may be modified or abandoned at any time. 
 
No final decision will be taken with respect to such plans or proposals without 
prior satisfaction of any applicable requirements with respect to informing, 
consulting or negotiating with employees or their representatives. We identify 
the principal risks and uncertainties that affect our performance in our Form 
10-K and other filings with the Securities and Exchange Commission. 
 
This release contains financial measures presented on a non-GAAP basis. 
Honeywell's non-GAAP financial measures used in this release are as follows: 
segment profit, on an overall Honeywell basis, a measure by which we assess 
operating performance, which we define as operating income adjusted for certain 
items as presented in the Appendix; segment margin, on an overall Honeywell 
basis, which we define as segment profit divided by sales; organic sales 
growth, which we define as sales growth less the impacts from foreign currency 
translation, and acquisitions and divestitures for the first 12 months 
following transaction date; free cash flow, which we define as cash flow from 
operations less capital expenditures; adjusted free cash flow, which we define 
as cash flow from operations less capital expenditures and which we adjust to 
exclude the impact of separation costs related to the spin-offs of Resideo and 
Garrett, if and as noted in the release; adjusted free cash flow conversion, 
which we define as adjusted free cash flow divided by net income attributable 
to Honeywell, excluding separation costs related to the spin-offs and the 
impact of the favorable resolution of a foreign tax matter related to the 
spin-off transactions, if and as noted in the release; and adjusted earnings 
per share, which we adjust to exclude the favorable resolution of a foreign tax 
matter related to the spin-off transactions. Management believes that, when 
considered together with reported amounts, these measures are useful to 
investors and management in understanding our ongoing operations and in the 
analysis of ongoing operating trends. These metrics should be considered in 
addition to, and not as replacements for, the most comparable GAAP measure. 
Refer to the Appendix attached to this release for reconciliations of non-GAAP 
financial measures to the most directly comparable GAAP measures. 
 
                         Honeywell International Inc. 
 
               Consolidated Statement of Operations (Unaudited) 
 
                (Dollars in millions, except per share amounts) 
 
                          Three Months Ended             Six Months Ended June 
                               June 30,                           30, 
 
                           2020        2019                2020        2019 
 
Product sales            $  5,743    $  6,990           $  12,048   $   13,703 
 
Service sales               1,734       2,253               3,892        4,424 
 
Net sales                   7,477       9,243              15,940       18,127 
 
Costs, expenses and 
other 
 
Cost of products sold       4,163       4,848               8,537        9,470 
(1) 
 
Cost of services sold       1,113       1,246               2,273        2,503 
(1) 
 
                            5,276       6,094              10,810       11,973 
 
Selling, general and        1,183       1,387               2,421        2,750 
administrative expenses 
(1) 
 
Other (income) expense      (291)       (305)               (608)        (590) 
 
Interest and other             90          85                 163          170 
financial charges 
 
                            6,258       7,261              12,786       14,303 
 
Income before taxes         1,219       1,982               3,154        3,824 
 
Tax expense (benefit)         120         426                 449          832 
 
Net income                  1,099       1,556               2,705        2,992 
 
Less: Net income               18          15                  43           35 
attributable to the 
noncontrolling interest 
 
Net income attributable  $  1,081    $  1,541           $   2,662   $    2,957 
to Honeywell 
 
Earnings per share of    $   1.54    $   2.13           $    3.77   $     4.07 
common stock - basic 
 
Earnings per share of    $   1.53    $   2.10           $    3.74   $     4.02 
common stock - assuming 
dilution 
 
Weighted average number     702.3       723.2               705.9        726.4 
of shares outstanding - 
basic 
 
Weighted average number     708.1       733.0               712.6        735.9 
of shares outstanding - 
assuming dilution 
 
(1)                      Cost of products and services sold and selling, 
                         general and administrative expenses include amounts 
                         for repositioning and other charges, the service cost 
                         component of pension and other postretirement (income) 
                         expense, and stock compensation expense. 
 
 
 
                         Honeywell International Inc. 
 
                           Segment Data (Unaudited) 
 
                             (Dollars in millions) 
 
                     Three Months Ended June          Six Months Ended June 30, 
                               30, 
 
Net Sales               2020         2019                 2020         2019 
 
Aerospace            $    2,543    $   3,508          $     5,904   $    6,849 
 
Honeywell Building        1,177        1,450                2,458        2,839 
Technologies 
 
Performance               2,218        2,735                4,615        5,307 
Materials and 
Technologies 
 
Safety and                1,539        1,550                2,963        3,132 
Productivity 
Solutions 
 
Total                $    7,477    $   9,243          $    15,940   $   18,127 
 
            Reconciliation of Segment Profit to Income Before Taxes 
 
                     Three Months Ended June          Six Months Ended June 30, 
                               30, 
 
Segment Profit          2020         2019                 2020         2019 
 
Aerospace            $      528    $     907          $     1,465   $    1,745 
 
Honeywell Building          250          300                  512          571 
Technologies 
 
Performance                 419          644                  931        1,208 
Materials and 
Technologies 
 
Safety and                  213          191                  391          403 
Productivity 
Solutions 
 
Corporate                  (25)         (72)                 (66)        (148) 
 
Total segment             1,385        1,970                3,233        3,779 
profit 
 
Interest and other         (90)         (85)                (163)        (170) 
financial charges 
 
Stock compensation         (34)         (34)                 (78)         (75) 
expense (1) 
 
Pension ongoing             198          148                  396          299 
income (2) 
 
Other                        14           11                   27           23 
postretirement 
income (2) 
 
Repositioning and         (280)        (126)                (342)        (210) 
other charges (3,4) 
 
Other (5)                    26           98                   81          178 
 
Income before taxes  $    1,219    $   1,982          $     3,154   $    3,824 
 
(1)                 Amounts included in Selling, general and administrative 
                    expenses. 
 
(2)                 Amounts included in Cost of products and services sold and 
                    Selling, general and administrative expenses (service 
                    costs) and Other income/expense (non-service cost 
                    components). 
 
(3)                 Amounts included in Cost of products and services sold, 
                    Selling, general and administrative expenses, and Other 
                    income/expense. 
 
(4)                 Includes repositioning, asbestos, and environmental 
                    expenses. 
 
(5)                 Amounts include the other components of Other income/ 
                    expense not included within other categories in this 
                    reconciliation. Equity income (loss) of affiliated 
                    companies is included in segment profit. 
 
 
 
                         Honeywell International Inc. 
 
                    Consolidated Balance Sheet (Unaudited) 
 
                             (Dollars in millions) 
 
                                                          June 30,    December 
                                                            2020        31, 
                                                                        2019 
 
ASSETS 
 
Current assets: 
 
Cash and cash equivalents                                $ 13,778     $  9,067 
 
Short-term investments                                      1,349        1,349 
 
Accounts receivable - net                                   6,717        7,493 
 
Inventories                                                 4,753        4,421 
 
Other current assets                                        1,724        1,973 
 
Total current assets                                       28,321       24,303 
 
Investments and long-term receivables                         626          588 
 
Property, plant and equipment - net                         5,327        5,325 
 
Goodwill                                                   15,518       15,563 
 
Other intangible assets - net                               3,551        3,734 
 
Insurance recoveries for asbestos related liabilities         379          392 
 
Deferred income taxes                                         106           86 
 
Other assets                                                9,776        8,688 
 
Total assets                                             $ 63,604     $ 58,679 
 
LIABILITIES 
 
Current liabilities: 
 
Accounts payable                                         $  5,366     $  5,730 
 
Commercial paper and other short-term borrowings            3,531        3,516 
 
Current maturities of long-term debt                          967        1,376 
 
Accrued liabilities                                         7,477        7,476 
 
Total current liabilities                                  17,341       18,098 
 
Long-term debt                                             17,591       11,110 
 
Deferred income taxes                                       1,461        1,670 
 
Postretirement benefit obligations other than pensions        317          326 
 
Asbestos related liabilities                                1,894        1,996 
 
Other liabilities                                           6,627        6,766 
 
Redeemable noncontrolling interest                              7            7 
 
Shareowners' equity                                        18,366       18,706 
 
Total liabilities, redeemable noncontrolling interest    $ 63,604     $ 58,679 
and shareowners' equity 
 
 
 
                         Honeywell International Inc. 
 
               Consolidated Statement of Cash Flows (Unaudited) 
 
                             (Dollars in millions) 
 
                                       Three Months Ended    Six Months Ended 
                                            June 30,             June 30, 
 
                                         2020       2019      2020       2019 
 
Cash flows from operating activities: 
 
Net income                             $  1,099   $ 1,556   $  2,705   $ 2,992 
 
Less: Net income attributable to the         18        15         43        35 
noncontrolling interest 
 
Net income attributable to Honeywell      1,081     1,541      2,662     2,957 
 
Adjustments to reconcile net income 
attributable to Honeywell to net cash 
provided by operating activities: 
 
Depreciation                                161       172        314       335 
 
Amortization                                 89       123        179       221 
 
Repositioning and other charges             280       126        342       210 
 
Net payments for repositioning and        (198)      (51)      (309)      (85) 
other charges 
 
Pension and other postretirement          (211)     (159)      (423)     (322) 
income 
 
Pension and other postretirement            (9)      (15)       (23)      (45) 
benefit payments 
 
Stock compensation expense                   34        34         78        75 
 
Deferred income taxes                     (219)      (36)      (277)        44 
 
Other                                     (106)         9      (285)         5 
 
Changes in assets and liabilities, net 
of the effects of acquisitions and 
divestitures: 
 
Accounts receivable                         735     (100)        776        98 
 
Inventories                               (168)      (52)      (331)     (273) 
 
Other current assets                       (60)      (22)        106     (239) 
 
Accounts payable                          (310)        21      (364)       (8) 
 
Accrued liabilities                         381        87       (26)     (161) 
 
Net cash provided by (used for)           1,480     1,678      2,419     2,812 
operating activities 
 
Cash flows from investing activities: 
 
Expenditures for property, plant and      (227)     (171)      (366)     (312) 
equipment 
 
Proceeds from disposals of property,          -         8          7        10 
plant and equipment 
 
Increase in investments                 (1,023)   (1,048)    (1,671)   (2,274) 
 
Decrease in investments                     746     1,367      1,589     2,163 
 
Receipts (payments) from settlements      (204)       110         83        70 
of derivative contracts 
 
Net cash provided by (used for)           (708)       266      (358)     (343) 
investing activities 
 
Cash flows from financing activities: 
 
Proceeds from issuance of commercial      3,710     3,796      7,165     7,114 
paper and other short-term borrowings 
 
Payments of commercial paper and other  (3,721)   (3,796)    (7,094)   (7,115) 
short-term borrowings 
 
Proceeds from issuance of common stock       31       233         97       378 
 
Proceeds from issuance of long-term       5,974         9      7,101        29 
debt 
 
Payments of long-term debt                 (93)      (71)    (1,218)      (84) 
 
Repurchases of common stock                (62)   (1,900)    (1,985)   (2,650) 
 
Cash dividends paid                       (650)     (597)    (1,285)   (1,203) 
 
Other                                       (2)       (2)       (40)      (32) 
 
Net cash provided by (used for)           5,187   (2,328)      2,741   (3,563) 
financing activities 
 
Effect of foreign exchange rate              98      (16)       (91)        32 
changes on cash and cash equivalents 
 
Net increase (decrease) in cash and       6,057     (400)      4,711   (1,062) 
cash equivalents 
 
Cash and cash equivalents at beginning    7,721     8,625      9,067     9,287 
of period 
 
Cash and cash equivalents at end of    $ 13,778   $ 8,225   $ 13,778   $ 8,225 
period 
 
 
 
                   Honeywell International Inc. 
 
       Reconciliation of Organic Sales % Change (Unaudited) 
 
                                                Three Months Ended 
                                                  June 30, 2020 
 
Honeywell 
 
Reported sales % change                               (19)% 
 
Less: Foreign currency translation                     (1)% 
 
Less: Acquisitions, divestitures and other, net         -% 
 
Organic sales % change                                (18)% 
 
Aerospace 
 
Reported sales % change                               (28)% 
 
Less: Foreign currency translation                      -% 
 
Less: Acquisitions, divestitures and other, net        (1)% 
 
Organic sales % change                                (27)% 
 
Honeywell Building Technologies 
 
Reported sales % change                               (19)% 
 
Less: Foreign currency translation                     (2)% 
 
Less: Acquisitions, divestitures and other, net         -% 
 
Organic sales % change                                (17)% 
 
Performance Materials and Technologies 
 
Reported sales % change                               (19)% 
 
Less: Foreign currency translation                     (2)% 
 
Less: Acquisitions, divestitures and other, net         -% 
 
Organic sales % change                                (17)% 
 
Safety and Productivity Solutions 
 
Reported sales % change                                (1)% 
 
Less: Foreign currency translation                     (2)% 
 
Less: Acquisitions, divestitures and other, net         -% 
 
Organic sales % change                                  1% 
 
We define organic sales percent as the year-over-year change in reported sales 
relative to the comparable period, excluding the impact on sales from foreign 
currency translation and acquisitions, net of divestitures. We believe this 
measure is useful to investors and management in understanding our ongoing 
operations and in analysis of ongoing operating trends. 
 
                         Honeywell International Inc. 
 
Reconciliation of Segment Profit to Operating Income and Calculation of Segment 
                Profit and Operating Income Margins (Unaudited) 
 
                             (Dollars in millions) 
 
                                                 Three Months Ended June 30, 
 
                                                     2020              2019 
 
Segment profit                                   $     1,385        $   1,970 
 
Stock compensation expense (1)                          (34)             (34) 
 
Repositioning, Other (2,3)                             (295)            (137) 
 
Pension and other postretirement service                (38)             (37) 
costs (4) 
 
Operating income                                 $     1,018        $   1,762 
 
Segment profit                                   $     1,385        $   1,970 
 
÷ Net sales                                      $     7,477        $   9,243 
 
Segment profit margin %                                 18.5 %           21.3 % 
 
Operating income                                 $     1,018        $   1,762 
 
÷ Net sales                                      $     7,477        $   9,243 
 
Operating income margin %                               13.6 %           19.1 % 
 
(1)                                           Included in Selling, general and 
                                              administrative expenses. 
 
(2)                                           Includes repositioning, 
                                              asbestos, environmental expenses 
                                              and equity income adjustment. 
 
(3)                                           Included in Cost of products and 
                                              services sold, Selling, general 
                                              and administrative expenses and 
                                              Other income/expense. 
 
(4)                                           Included in Cost of products and 
                                              services sold and Selling, 
                                              general and administrative 
                                              expenses. 
 
 
We define segment profit as operating income, excluding stock compensation 
expense, pension and other postretirement service costs, and repositioning and 
other charges. We believe these measures are useful to investors and management 
in understanding our ongoing operations and in analysis of ongoing operating 
trends. 
 
                         Honeywell International Inc. 
 
Reconciliation of Earnings per Share to Adjusted Earnings per Share (Unaudited) 
 
                                           Three Months Ended June 30, 
 
                                  June 30, 2020                  June 30, 2019 
 
Earnings per share of common      $        1.53                  $        2.10 
stock - assuming dilution (1) 
 
Separation-related tax adjustment        (0.27)                              - 
(2) 
 
Adjusted earnings per share of    $        1.26                  $        2.10 
common stock - assuming dilution 
 
(1)                               For the three months ended June 30, 2020 and 
                                  2019, adjusted earnings per share utilizes 
                                  weighted average shares of approximately 
                                  708.1 million and 733.0 million. 
 
(2)                               For the three months ended June 30, 2020, 
                                  separation-related tax adjustment of $186 
                                  million ($186 million net of tax) includes 
                                  the favorable resolution of a foreign tax 
                                  matter related to the spin-off transactions. 
 
We believe adjusted earnings per share, excluding spin-off impact, is a measure 
that is useful to investors and management in understanding our ongoing 
operations and in analysis of ongoing operating trends. For forward looking 
information, management cannot reliably predict or estimate, without 
unreasonable effort, the pension mark-to-market expense as it is dependent on 
macroeconomic factors, such as interest rates and the return generated on 
invested pension plan assets. We therefore do not include an estimate for the 
pension mark-to-market expense. Based on economic and industry conditions, 
future developments and other relevant factors, these assumptions are subject 
to change. 
 
                         Honeywell International Inc. 
 
 Reconciliation of Cash Provided by Operating Activities to Adjusted Free Cash 
    Flow and Calculation of Adjusted Free Cash Flow Conversion (Unaudited) 
 
                             (Dollars in millions) 
 
                                                   Three Months   Three Months 
                                                       Ended          Ended 
                                                   June 30, 2020  June 30, 2019 
 
Cash provided by operating activities               $   1,480      $   1,678 
 
Expenditures for property, plant and equipment          (227)          (171) 
 
Free cash flow                                          1,253          1,507 
 
Separation cost payments                                    -             28 
 
Adjusted free cash flow                             $   1,253      $   1,535 
 
Net income attributable to Honeywell                    1,081          1,541 
 
Separation-related tax adjustment                       (186)              - 
 
Adjusted net income attributable to Honeywell       $     895      $   1,541 
 
Cash provided by operating activities               $   1,480      $   1,678 
 
÷ Net income (loss) attributable to Honeywell       $   1,081      $   1,541 
 
Operating cash flow conversion                            137 %          109 % 
 
Adjusted free cash flow                             $   1,253      $   1,535 
 
÷ Adjusted net income attributable to Honeywell     $     895      $   1,541 
 
Adjusted free cash flow conversion %                      140 %          100 % 
 
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, 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. 
 
Contacts: 
 
Media                      Investor Relations 
 
Nina Krauss                Mark Bendza 
 
(704) 627-6035             (704) 627-6200 
 
nina.krauss@honeywell.com  mark.bendza@honeywell.com 
 
 
 
END 
 

(END) Dow Jones Newswires

July 24, 2020 06:30 ET (10:30 GMT)

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