Edited from: Annual Report and company website
The strategy that was first introduced in 2002 'the four pillars of growth' is the basic foundation of Honeywell's strategy today. It focuses on driving organic growth through its processes and services, innovative products and services and close partnerships with its global customers.
Looking ahead, the outlook for Honeywell is stated as being 'stable'. It is believed that the global economy will continue to be ‘good’, flight hours will continue to increase, capital investment is expanding, job growth continues, and cash flows for most companies continue to improve.
On this basis, Honeywell will continue to focus on a five initiatives programmes. The five initiatives will give the company a path that it believes will ensure that its results are sustainable.
Five initiatives programme includes:
Growth and productivity;
Twelve behaviours;
Cash;
People; and
Enablers, such as DigitalWorks and Six Sigma.
Its organic growth focus will also continue to gain traction. It will offer quality, delivery, value and technology to its customers. It will also continue to embark on a strategic marketing programme. Honeywell will continue to expand its business globally. It now has R&D centres in Bangalore, India, Shanghai, China, and Brno, Czech Republic that develop products for local markets.
Specialty materials business
Honeywell will continue to focus its specialty materials business on six growth platforms:
Fluorocarbons;
Specialty films,
Advanced fibres;
Customised research chemicals and intermediates;
Electronic materials and chemicals; and
Catalysts and adsorbents.
Honeywell Specialty Materials’ primary area of focus includes:
Completing integration of UOP acquisition;
Achieving growth through sales and marketing excellence, global expansion and innovation;
The successful launch of new products;
Continuing to drive improvements in manufacturing productivity; and
Continuing to offset raw material cost increases with formula price agreements and price increases, where feasible.
Growth is expected to continue by leveraging technologies across business groups, expanding core technologies into adjacent markets and new vertical industries, and pursuing select acquisitions in high-growth segments and strategic licensing opportunities.
The specialty materials' operating results are principally driven by global gross domestic product, plant capacity utilisation and the costs of raw materials including natural gas and benzene. Honeywell believes that specialty materials today are ‘stronger, less exposed to volatile raw-material costs and well-positioned for growth’. ‘Where once we had a bleeding $3.5bn business, we now have a vibrant growing $4.4bn business’, says chairman and chief executive officer, David Cote.
The company believes that the business challenges and areas of focus will include:
A degree of volatility in significant raw material costs (natural gas and benzene);
Extent of change in order rates from global semiconductor customers;
Worldwide demand for non-ozone depleting hydrofluorocarbon (HFC); and
Refining and petrochemical capacity, utilisation and/or expansion.
ICIS Chemical Business magazine has unveiled the ICIS Top 100 Chemical Companies, with rankings based on 2008 sales.
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Financial highlights: Honeywell, year ended 31 December
|
|
2008 |
2007 |
2006 |
2005 |
2004 |
|
Sales ($ m) |
36,556 |
34,589 |
31,367 |
27,652 |
25,601 |
|
Net Profit ($ m) |
2,792 |
2,444 |
2,083 |
1,638 |
1,246 |
|
Total Assets ($ m) |
35,490 |
33,805 |
30,941 |
31,663 |
30,570 |
|
Diluted earnings per share ($) |
3.76 |
3.16 |
2.52 |
1.92 |
1.45 |
|
Number of Employees |
128,000 |
122,000 |
118,000 |
116,000 |
109,000 |
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Honeywell
Company Structure
Honeywell is a diversified technology and manufacturing company. It serves customers worldwide with aerospace products and services, control technologies for buildings, home and industry, automotive products, power generation systems, speciality chemicals, fibres, plastics and electronic and advanced materials. The company was formed through the merger of two global companies, AlliedSignal and Honeywell Inc 1999.
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