Honeywell hosted its Annual Investor Conference today in New York City, reaffirming its five-year outlook for organic sales of $46 – $51 billion and segment margin of 18.5 – 20.0 percent. Despite some significant headwinds in the global economy, Honeywell achieved the goals set out in its first five-year plan, which ended in 2014. The 2018 plan has set even more aggressive targets.
“Our businesses today have Great Positions in Good Industries, and are well positioned to grow,” said Honeywell Chairman and CEO Dave Cote. “Our balanced portfolio mix of short- and long-cycle businesses will benefit from improving end markets, new product introductions, continued penetration in high growth regions, and HOS Gold.”
The Next Step in Honeywell’s Evolution
Honeywell is using HOS Gold to drive growth and margin expansion across its portfolio.
“HOS Gold is driving breakthrough innovation and execution, allowing us to grow sales and margin above the market and our peers,” continued Cote. “Our set of core processes and business management tools – Honeywell User Experience, Velocity Product Development™, Functional Transformation, and Organizational Effectiveness – continues to mature, helping us to bring better products to market faster than our competitors. Achieving CMMI Level 5 for software development in 2015 will give us a huge advantage over competitors, while the Honeywell User Experience will ensure that our products will be easy to use and install.”
Strengthening Honeywell’s Great Positions in Good Industries
Honeywell expects an additional dollar in earnings per share by 2018 from capital deployment, including mergers and acquisitions, and share repurchases.
“Our robust balance sheet provides the flexibility and firepower we need to execute on our growth plans,” said Cote. “While M&A is the priority, we will deploy net cash amounts in excess of $1 – $2 billion for incremental share repurchase, and are committed to growing our dividend rate faster than earnings.”
“We’re off to a strong start to achieving the 2018 targets we established last year, and there’s a lot of runway in front of us,” concluded Cote. “It’s an exciting time for the Company, and we are confident that the best is yet to come.”
At the event, Honeywell hosted a Technology Showcase, demonstrating key products developed for homes, aviation, vehicles, commercial buildings and industrial facilities.
View more tweets from the event, or read more about Honeywell’s 2018 organic growth targets and full-year guidance in the press release. Related presentation materials are available at www.honeywell.com/investor, including a replay of the webcast, which will be available for 30 days following the event.