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Jialuan Ning, Tianchen Wang, Dana Rich, James v on K aenel , Yonas Bogale

Jialuan Ning, Tianchen Wang, Dana Rich, James v on K aenel , Yonas Bogale. Presentation overview. -Company Background -Current News -Financial Analysis -Future Growth. Historical Background. -Founder and CEO (1927-1933): Mark C. Honeywell

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Jialuan Ning, Tianchen Wang, Dana Rich, James v on K aenel , Yonas Bogale

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  1. JialuanNing, Tianchen Wang, Dana Rich, Jamesvon Kaenel, Yonas Bogale
  2. Presentation overview -Company Background -Current News -Financial Analysis -Future Growth
  3. Historical Background -Founder and CEO (1927-1933): Mark C. Honeywell -Created the first hot water heating system in North America. -Entered the defense industry during World War II. -Lethal weapons such as -Cluster bombs -Missile guidance systems -Napalm -Land mines
  4. Current company’s Leaders CEO: David M. Cote -Named Chairman of the Board on July 1, 2002 CFO: David J. Anderson -Named Senior Vice President on June 2003
  5. Company overview Merged with AlliedSignal in 1999 Philanthropy: Hometown Solutions Headquarters: Morris Township, New Jersey Emphasize Innovation and Technology 140,000 employees
  6. products
  7. 2012 Sales Distribution
  8. Automation And Controls 2012 Sales: $15.5BillionSegmented Profit: $2.2 Billion Honeywell's largest division sells thermostats, protective clothing, and portable gas-detection devices.
  9. Aerospace 2011 sales: $11.5 billion Segmented Profit: $2.3 Billion This unit is one of the world's largest makers of engines for business jets and advanced avionics.
  10. Performance Materials and Technologies 2012 Sales:$5.7 billion Segmented Profit: $1.2 Billion Its offerings range from the Uniflex system for extracting extra gasoline from crude to film for use in "blister packs“.
  11. Transportation Systems 2012 Sales:$3.9 billionSegmented Profit: $432 Million This business is the world's largest maker of turbochargers, a Cote favorite.
  12. Sales from different sectors
  13. $221 million contracts from US Army Supports the U.S. Army’s M1 Abrams \ Tank Program AGT1500 vehicular gas turbine engine High power, low noise, smokeless operation First Contract: $111 million, 18-month contract through Dec. 2013 for continuation of TIGER program Second Contract: $110 million for production of 125 AGT1500 engines from Sep. 2012- Oct. 2015 Received extension of earlier contract, totaling $1.5 billion
  14. Cutting Edge – Miniature DroneDeveloped for US ARMY Has a weight of about 17lb and is also backpack portable.  The MAV also has fully autonomous flight mode, which allows operation with dynamic re-tasking and manual intervention. Awarded a $61 Million from the US Army to Develop the drone Shows Honeywell's technical prowess
  15. acquisitions Acquired 75 companies for $10 Billion since 2002 Acquisitions have averaged a 300% increase in profit since being acquired Currently evaluatingover100 companies as potential acquisition targets Aiming for small/young companies in order to incorporate Honeywell's corporate culture Honeywell does not tolerate underperforming business Divested $6 billion of underperforming business divisions since 2002
  16. Liquidity
  17. Efficiency
  18. Cash Conversion Cycle
  19. Cash Flow Liquidity
  20. SOLVENCY Despite increase in debt, the ratio decreases due to larger increases in assets
  21. Honeywell Credit Ratings A,A-1, F1: Upper median Grade P-1: High Grade From www.bga-aeroweb.com
  22. Times interest earned -Increase in operational profit. -Low effective interest rate
  23. Return on Assets and Equity Increase in Net Profit and Total Assets Increase in Stockholder’s Equity and Net Profit
  24. Current Stock Price
  25. Our stock is very stable!
  26. % Change of Honeywell Stock Price from 2008-2012 (Compared to Boeing and Northrop-Grumman) Increasing Profit Margin+ Increasing Stock Buyback Better stock than No 3 Northrop-Grumman and No.2 Boeing!
  27. PROFIT Gross Profit Margin Operating Margin
  28. Net Profit Net Profit Margin 7.78% in 2012 and 2.26% in 2008 despite similar sales in both years ($37 Bil. in 2012 vs. $36 Bil in 2008)
  29. Main Risk Factor of Honeywell:Highly Leveraged Long-Term Debt 2008: $6.9 Billion Expected Interest: $3.5 Billion 2012: $7 Billion Expected Interest: $2.8Billion Debt to Asset Debt to Equity
  30. Other Risk Factors and Contingencies Impairment Charges for Long-Lived Assets Available for Sale Investments Volatility of Credit Market Asbestos and Environmental Legislation
  31. Honeywell’s Model for Future Growth New Market Penetration Increased Spending for Capital Expenditures Repurchase of Stocks Results in Increase in Stock Price Increase Cash Dividends
  32. New Markets Personal Protection Position: #1 Gas Detection Position: #1 Internal Combustion Position: #2 AIDC (Automatic Identification and Data Capture) Position: #2
  33. Intermec Acquisition
  34. Invest In Us Right Now! Share repurchases—under the company’s previously reported $3 billion share repurchase program, $1.6 billion remains available as of December 31, 2012 for additional share repurchases
  35. Dividends payout $1.3 billion in dividends to be paid to common shareholders in 2013 Reflects a 10% increase on the effective dividend rate.
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