Honeywell CEO Talks Company, Global Outlook on CNBC Squawk Box
March 06, 2014
Honeywell Chairman and CEO Dave Cote reaffirmed the company's first quarter and full-year 2014 outlook in a CNBC Squawk Box interview on Wednesday, ahead of the company's annual investor conference. Cote also discussed his perspective on the need for America to stay globally competitive and outlined the components of Honeywell’s newly released five-year plan.
“There’s this global economic phenomenon going on now and it’s called China,” said Cote. “You have high-growth regions – think of it as what people used to think of as emerging markets. Today, it’s about a third of the global economy. In the next twenty years, it’s going to become half. We’re in this economic Olympics, feeling like we’re competing with the other Americans as opposed to competing with all these other countries. We need to start changing how we think about this stuff.”
“There’s a lot of excitement about this year’s five-year plan, which you’ll see is double-digit growth in a continued slow-growth economy,” Cote explained. “You’ll continue to see us drive high-growth regions and you’ll see us focus even more on software. At Honeywell we have about 22,000 engineers and more than half of them do software. So even when you think about turbochargers and jet engines – there’s a big software component to it. As a result of that, along with the cash deployment we’ve built up, we’re going to generate about $30 billion worth of cash over the next five years. When you deploy that cash – a lot of it hopefully into M&A – it could generate some very good returns.”