“The strength of our business performance year-to-date and our expectations for continued good organic sales growth, EPS expansion, and cash flow generation led to the decision to increase the dividend rate by 12%, compared to the historical 10% increase, and accelerate the effective date to the fourth quarter of this year,” said Honeywell Chairman and CEO Dave Cote. “Our strategies for smart cash deployment, including reinvestment in our businesses, disciplined M&A, dividend growth, and opportunistic share repurchases, will continue to be drivers of shareowner value.”

• 3Q11 sales were up 14% to $9.3 billion versus $8.1 billion in 3Q10
    – 8% organic growth reflects continued strength in end markets
• 3Q11 earnings of $1.10 per share, an increase of 45% over $0.76 in 3Q10
    – Segment profit growth and margin expansion in all segments
    – Includes $0.04 benefit from lower tax rate; tax rate favorability expected to be offset in 4Q11
    – Includes $0.33 repositioning and other actions funded by the gain on sale of the divested Consumer Products Group (CPG) business ($0.23, discontinued operations) and OPEB curtailment ($0.10) in the quarter, which will better position the company for 2012 and beyond
• 3Q11 cash flow from operations of $0.7 billion, includes $400 million cash pension contribution
    – 3Q11 free cash flow (cash flow from operations less capital expenditures) of $884 million, excludes $400 million cash pension contribution

The company is raising its 2011 sales and EPS outlook and now expects:
• 2011 sales of $36.5 – 36.7 billion, up approximately 13% over 2010
    – Excludes the divested CPG business, treated as discontinued operations
• 2011 proforma earnings per share of $4.00 – 4.05, up 33 – 35% over 2010
    – Mark-to-market pension adjustments in both periods excluded
• 2011 free cash flow guidance of approximately $3.5 billion, prior to any cash pension contribution

“Honeywell’s strong third quarter results are a continuation of the momentum we’ve seen across our businesses in 2011,” said Honeywell Chairman and CEO Dave Cote.  “Our third quarter sales growth reflects a particularly robust Commercial Aerospace upcycle, with growth in both original equipment and aftermarket sales. It also highlights the company’s extensive innovation pipeline and increasing presence in high growth regions in all our businesses. Our long-cycle backlog continues at near record levels, with sustained strong orders growth particularly at UOP, ACS Solutions, and Commercial Aerospace. Further, our short-cycle businesses, such as Turbo Technologies, Advanced Materials, and ACS Products are performing well overall.” 

“Despite signals of slower economic growth, we expect positive organic growth to continue the rest of this year and into 2012,” concluded Cote. “The repositioning actions we took in the third quarter, funded by non-operational gains, better position our businesses for 2012 and beyond. These repositioning tailwinds, combined with our great positions in good industries, execution track record, and disciplined playbook, will be keys to our continued outperformance.”

For more information, read the press release, watch Chairman and CEO Dave Cote discuss the company’s financial performance on CNBC, or listen to a replay of the Investor Conference Call.

Honeywell launched its “Digital Dashboard,” a new Website, which is accessible from the homepage of www.Honeywell.com, and iPad “App” that highlights the company’s differentiated technologies, Great Positions in Good Industries, alignment with key macro trends, and strong financial track record.  The online and mobile format improves access and is more useful and contemporary than glossy annual reports, allowing for a greater variety and quantity of content to be presented in a more compelling and updated way.

The new Website and App feature current stock price information, the latest company news, and hundreds of interactive facts, statistics, animations, photos, and videos that will better help the investment community, customers, employees, government officials, and community leaders understand the breadth and depth of Honeywell’s four businesses – Aerospace, Automation and Control Solutions, Transportation Systems, and Specialty Materials – as well as the company’s terrific growth and financial performance.

For more information, read the press release, visit www.honeywell.com, or download the corporate App from the iTunes App Store.

Honeywell announced that its Board of Directors has nominated former U.S. Senator from New Hampshire Judd Gregg, 64, to stand for election as a Director at the company’s 2011 Annual Meeting of Shareowners with all of the incumbent Directors.

“Judd’s leadership in public office over the past 30 years and experience with major economic, fiscal, and foreign policy makes him a terrific fit for our Board,” said Honeywell Chairman and Chief Executive Officer Dave Cote.  “As a former governor, he knows how to lead a complex agenda across a range of constituencies, manage a budget, and hold his team accountable for delivering real results.  He is a great American leader and a champion of economic reform and reducing our national debt and deficit.  The company will benefit from his first-hand knowledge of foreign affairs, commitment to math and science education, and public experience, at both the state and national levels, as we continue to drive productivity and growth at Honeywell.”

Senator Gregg has spent more than three decades in public office, most recently serving as U.S. Senator from New Hampshire from 1993 to 2011.

For more information, read the press release.

“Raising the dividend rate by 10% reflects Honeywell’s strong cash generation and the continued improvement in our underlying business performance,” said Honeywell Chairman and CEO Dave Cote. “We’re committed to delivering shareowner value and confident that our great positions in good industries will help drive Honeywell’s growth and performance over the long-term.”