Honeywell Expects 2004 Earnings Per Share to Rise
MORRIS TOWNSHIP, N.J.--
-- 2004 revenue and profit expected to increase in all four operating
segments
-- 2004 earnings projected to grow between 9% and 17%, excluding
pension/OPEB
-- Cash flow from operations and free cash flow expected to exceed net
income in 2004
-- Company estimates fourth-quarter 2003 earnings per share of 47 cents, in
line with prior guidance and consensus
Honeywell announced today that it expects 2004 earnings per share to
range from $1.40 to $1.55. The 2004 outlook anticipates that improved
performance in all four of Honeywell's operating segments will be more than
offset by a 30 cents per share increase in pension expense and other
post-employment benefits. The company also forecasted fourth-quarter earnings of
47 cents per share, in line with prior guidance and consensus, bringing
full-year 2003 earnings per share to $1.54.
The company expects 2003 cash flow from operations and free cash flow to reach
approximately $2.1 billion and $1.5 billion respectively, including an expected
voluntary pension contribution of up to $500 million in the fourth quarter.
"The company continues to perform well, delivering solid earnings and cash flow
while also investing in growth initiatives. We have good momentum going into
2004 and while there are some limited signs of improvement in our end markets,
we are not dependent on significant economic improvement to meet our guidance,"
said Honeywell Chief Financial Officer Dave Anderson.
Honeywell will discuss its results during its investor Webcast at 8:30 a.m. EST
today. The Webcast and related presentation materials will be available at
www.honeywell.com/investor.
Honeywell International is a $22 billion diversified technology and
manufacturing leader, serving customers worldwide with aerospace products and
services; control technologies for buildings, homes and industry; automotive
products; turbochargers; specialty chemicals; fibers; and electronic and
advanced materials. Based in Morris Township, N.J., Honeywell's shares are
traded on the New York, London, Chicago and Pacific Stock Exchanges. It is one
of the 30 stocks that make up the Dow Jones Industrial Average and is also a
component of the Standard & Poor's 500 Index. For additional information, please
visit www.honeywell.com.
This release contains forward-looking statements as defined in Section 21E of
the Securities Exchange Act of 1934, including statements about future business
operations, financial performance and market conditions. Such forward-looking
statements involve risks and uncertainties inherent in business forecasts as
further described in our filings under the Securities Exchange Act.
Honeywell International
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Reconciliation of Estimated Earnings Per Share to
Estimated Earnings Per Share
-------------------------------------------------
Excluding Pension and OPEB Expense (Unaudited)
----------------------------------------------
Twelve Months Ending Percentage
December 31, Variance
---------------------
2003 2004 2004
versus
2003
----- ------------- ----------
Low High Low High
------ ------ ----- ----
Estimated earnings per share of
common stock -
assuming dilution $1.54 $1.40 $1.55 (9) % 1 %
Adjustment to exclude pension and
OPEB expense -
per share of common stock 0.28 0.58 0.58
----- ----- -----
Estimated earnings per share of
common stock -
assuming dilution, excluding
pension and OPEB expense $1.82 $1.98 $2.13 9 % 17 %
===== ===== =====
Reconciliation of Cash Provided By Operating Activities to
Free Cash Flow
----------------------------------------------------------
Twelve Months Ending December 31,
2003 (Unaudited)
---------------------------------
(dollars in billions)
Estimated cash provided by operating
activities $ 2.1
Estimated expenditures for property,
plant and equipment (0.6)
-----
Estimated free cash flow $ 1.5
=====
We define free cash flow as cash provided by operating activities,
less cash expenditures for property, plant and equipment.
