Honeywell to use cash generated for shareholder returns, investments

By Sahara Marte

New York, June 1 - Honeywell Inc. plans to return about 50% of the cash it generates to shareholders, with the remainder being used selectively for innovations, Dave Anderson, senior vice president and chief financial officer, said at the Sanford C. Bernstein 28th annual strategic decisions conference.

That use is in line with the company's record from 2003 through 2011, he added.

Honeywell's goal is to beat heavy competition through innovation and increased penetration of fast-growing markets, Anderson said.

From 2003 to 2011, Honeywell increased its sales by an average of 7% annually to $36.5 billion from $22.1 billion and its net income by 12% a year, to $3.2 billion from $1.3 billion.

For 2012, Honeywell expects a segment margin of 15.3% to 15.5% and earnings per share of $4.35 to $4.55.

"If you look at some of the peer margins, it certainly suggests the reasonableness of those targets that we've established," said Anderson.

Honeywell is a Morristown, N.J.-based diversified manufacturing company.

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