Honeywell Forecasts 2013 Sales Of $39.0-39.5 Billion; Announces Plans to Acquire Intermec

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Honeywell today announced its 2013 financial forecast and reaffirmed its 2012 outlook at the midpoint of its previous guidance ranges and announces their plan to acquire Intermec, Inc., a leading provider of mobile computing, radio frequency identification solutions (RFID) and bar code, label and receipt printers for use in warehousing, supply chain, field service and manufacturing environments, for approximately $600 million. Other 2013 guidance highlights include:

  • Sales of $39.0-$39.5 billion, up 4-5%
  • Segment margin of 15.8-16.1%, up 20 – 50 bps
  • Operating margin of 14.2 – 14.5%, up 50 – 80 bps *
  • Earnings Per Share of $4.75 – $4.95, up 6-11% *
  • Free Cash Flow of ~3.7B **

“We expect 2012 to be another year of strong execution for Honeywell, building on an established track record over the past decade,” said Honeywell Chairman and CEO Dave Cote. “We’re achieving good sales growth, record margins, and double digit EPS growth while continuing to generate strong free cash flow. Importantly, we’ll have achieved these results while continuing to invest in our future growth. We’ve done a lot over the past decade to transform Honeywell and today we’re achieving top-tier performance with a differentiated and balanced mix of long- and short-cycle businesses, a successful pipeline of new products, geographic expansion, and continued focus on our key initiatives.”

“The addition of Intermec is a natural extension to our Scanning & Mobility business, which was established through the successful acquisitions of Hand Held Products, Metrologic and EMS,” said Honeywell Automation and Control Solutions President and Chief Executive Officer Roger Fradin. “While Intermec strengthens our core scanning and mobile computing business, it opens up entirely new opportunities in RFID, voice solutions and barcode and receipt printing segments that we currently don’t serve. It expands our product offerings and strengthens our intellectual property portfolio putting us in position to be a technology leader for years to come in the highly attractive AIDC industry.”

The Intermec transaction is expected to close by the end of the second quarter of 2013 pending Intermec shareholder approval and following customary regulatory reviews.

Read the business outlook press release for more information.

* Proforma, V% / BPS Excludes Any Pension Mark to Market Adjustment; ** Free Cash Flow (Cash Flow from Operations Less Capital Expenditures) Prior to Any NARCO Related Payments and Cash Pension Contributions