Honeywell Reports Second Quarter Sales Up 8% to US$8.5 Billion and Earnings Up 24% to 78 Cents Per Share

Honeywell Reports Second Quarter Sales Up 8% to US$8.5 Billion and Earnings Up 24% to 78 Cents Per Share

- Company Raises 2007 Guidance for Sales, EPS, and Free Cash Flow

Honeywell (NYSE: HON) today announced second quarter 2007 sales increased 8% to US$8.5 billion from US$7.9 billion last year. Earnings were up 24% to US$0.78 per share, versus US$0.63 per share last year. Cash flow from operations was US$983 million versus US$935 million in the second quarter of 2006 and free cash flow (cash flow from operations less capital expenditures) was US$820 million, compared to US$786 million last year.

“Honeywell’s second quarter was driven by strong organic sales growth, double-digit earnings growth, and robust free cash flow,” said Honeywell Chairman and CEO Dave Cote. “We continue to benefit from our global footprint, great positions in good industries, and our effective deployment of cash through dividends, acquisitions, and share repurchases.”

Honeywell repurchased more than 40 million shares of stock in the second quarter, reducing the amount remaining under its previously announced authorization to approximately US$200 million. The company’s Board of Directors has authorized the repurchase of up to an additional US$3 billion of Honeywell common stock. Honeywell expects to repurchase shares to maintain an essentially flat share count through the remainder of 2007.

“We had a great first half of 2007 with sales increasing 10%, EPS up 25%, and free cash flow up 42%. As a result of this performance, our share repurchases, and confident outlook for the second half, we are raising full-year sales, EPS, and free cash flow guidance,” concluded Cote.

Honeywell increased its previously stated 2007 sales guidance to US$33.9 billion, its earnings per share range to US$3.10 – 3.16 and free cash flow range to US$2.8 – 3.0 billion (cash flow from operations of US$3.6 – 3.8 billion).