HON.L Regulatory News (HON)

Honeywell Reports First Quarter 2013 Sales Of $9.3 Billion; EPS Up 16% To $1.21

Per Share

- Strong Productivity Driving EPS Growth of 16%, Up 12% Using ExpectedFull-Year Tax Rate

- Segment Margin Increase of 100 Bps to 16.2%, Operating Margin Up 120 Bps

- Increasing Low-End 2013 Proforma EPS Guidance to $4.80 - $4.95, From $4.75 -$4.95

MORRIS TOWNSHIP, N.J., April 19, 2013 -- Honeywell (NYSE: HON) today announcedits results for the first quarter of 2013:

Total Honeywell ($ Millions, except Earnings Per Share) 1Q 2012 1Q 2013 Change Sales 9,307 9,328 ~ flat Segment Margin 15.2% 16.2% 100 bpsOperating Income Margin 12.9% 14.1% 120 bps Earnings Per Share $1.04 $1.21 16% Cash Flow from Operations 196 341 74%Free Cash Flow * 300 327 9% * Free Cash Flow (cash flow from operations less capital expenditures) prior tocash pension contributions "Honeywell delivered better than expected quarterly earnings and margins evenin a continued slow global growth environment," said Honeywell Chairman and CEODave Cote. "We had strong productivity in the quarter, and our balancedportfolio of both short- and long-cycle businesses continues to drive ouroutperformance. As a result of our strong start to 2013, we're raising thelow-end of our full-year earnings guidance by five cents. We're achieving theseresults in a slow growth environment while also maintaining our seed plantingfor the future by investing in new products and technologies, geographicexpansion, and driving our key process initiatives. And, it will continue. It'swhat will help Honeywell deliver top-tier earnings performance this year andover the long-term." First quarter 2013 earnings per share (EPS) reflects a 23.1% effective tax ratecompared to 26.5% last year. Using the expected full-year tax rate of 26.5%,EPS growth would have been 12%. The company is updating its full-year 2013 sales and EPS guidance and nowexpects: Full-Year Guidance 2013 2013 Change Prior Guidance Revised Guidance vs. 2012 Sales $39.0 - $39.5B $38.8 - $39.3B 3 - 4% Segment Margin 15.8 - 16.1% 15.9 - 16.2% 30 - 60 bpsOperating Income Margin(1) 14.2 - 14.5% 14.3 - 14.6% 70 - 100 bps Earnings Per Share(1) $4.75 - $4.95 $4.80 - $4.95 7% - 11% Free Cash Flow(2) ~$3.7B ~$3.7B ~ Flat 1. Proforma, V% / BPS exclude any pension mark-to-market adjustment

2. Free Cash Flow (cash flow from operations less capital expenditures) priorto any NARCO related payments and cash pension contributions

First Quarter Segment Performance

Aerospace ($ Millions) 1Q 2012 1Q 2013 % ChangeSales 2,950 2,911 (1%)Segment Profit 534 551 3%Segment Margin 18.1% 18.9% 80 bps

* Sales were down (1%) compared with the first quarter of 2012 driven by a

(1%) decline in our Commercial businesses primarily driven by higher than

normal prior year shipments to commercial airline and BGA original

equipment customers, and a (1%) decline in Defense and Space, as expected.

* Segment profit was up 3%, and segment margins expanded 80 bps to 18.9%,

primarily due to commercial excellence and productivity net of inflation

(including prior year impact of customer bankruptcy), partially offset by

lower aftermarket volumes.

Automation and Control Solutions

($ Millions) 1Q 2012 1Q 2013 % ChangeSales 3,788 3,786 ~ flatSegment Profit 491 523 7%Segment Margin 13.0% 13.8% 80 bps

* Sales were approximately flat on both a reported and organic basis compared

with the first quarter of 2012. Energy, Safety, and Security sales were up primarily due to growth in ECC and Security products, partially offset by

lower sales in Process Solutions and Building Solutions and Distribution.

* Segment profit was up 7% and segment margins were up 80 bps to 13.8% driven

by commercial excellence and productivity net of inflation.

Performance Materials and Technologies

($ Millions) 1Q 2012 1Q 2013 % ChangeSales 1,615 1,717 6%Segment Profit 319 374 17%Segment Margin 19.8% 21.8% 200 bps * Sales were up 6% reported, down (2%) organic, compared with the first quarter of 2012, resulting from the Thomas Russell acquisition, higher petrochemical catalyst shipments and equipment sales in UOP, partially offset by planned plant outages in Resins & Chemicals and Fluorine Products.

* Segment profit was up 17% and segment margins increased 200 bps to 21.8%,

primarily due to higher sales at UOP and favorable price net of inflation,

partially offset by lower volume in Advanced Materials and continued

investments for growth.

Transportation Systems ($ Millions) 1Q 2012 1Q 2013 % ChangeSales 954 914 (4%)Segment Profit 120 111 (8%)Segment Margin 12.6% 12.1% (50) bps

* Sales were down (4%) on both a reported and organic basis compared with the

first quarter of 2012, driven by approximately 10% lower European light

vehicle production volumes and declining aftermarket sales, partially

offset by the positive impact of new platform launches, including higher

turbo gas launches in North America and China. * Segment profit was down (8%) and segment margins decreased (50) bps to 12.1% primarily driven by lower sales, and ongoing projects to drive operational improvement in the Friction Materials business, partially offset by productivity benefits. Honeywell will discuss its results during its investor conference call todaystarting at 9:30 a.m. EDT. To participate, please dial (800) 894-5910(domestic) or (785) 424-1052 (international) a few minutes before the 9:30 a.m.EDT start. Please mention to the operator that you are dialing in forHoneywell's first quarter 2013 investor conference call or provide theconference code HONQ113. The live webcast of the investor call as well asrelated presentation materials will be available through the "InvestorRelations" section of the company's Website (http://www.honeywell.com/investor).Investors can access a replay of the conference call from 12:00 p.m. EDT,April 19, until 11:59 p.m. EDT, April 26, by dialing (800) 753-6121 (domestic)or (402) 220-2676 (international).

Honeywell (www.honeywell.com) is a Fortune 100 diversified technology andmanufacturing leader, serving customers worldwide with aerospace products andservices; control technologies for buildings, homes, and industry;turbochargers; and performance materials. Based in Morris Township, N.J.,Honeywell's shares are traded on the New York, London, and Chicago StockExchanges. For more news and information on Honeywell, please visitwww.honeywellnow.com.

This release contains certain statements that may be deemed "forward-lookingstatements" within the meaning of Section 21E of the Securities Exchange Act of1934. All statements, other than statements of historical fact, that addressactivities, events or developments that we or our management intends, expects,projects, believes or anticipates will or may occur in the future areforward-looking statements. Such statements are based upon certain assumptionsand assessments made by our management in light of their experience and theirperception of historical trends, current economic and industry conditions,expected future developments and other factors they believe to be appropriate.The forward-looking statements included in this release are also subject to anumber of material risks and uncertainties, including but not limited toeconomic, competitive, governmental, and technological factors affecting ouroperations, markets, products, services and prices. Such forward-lookingstatements are not guarantees of future performance, and actual results,developments and business decisions may differ from those envisaged by suchforward-looking statements. We identify the principal risks and uncertaintiesthat affect our performance in our Form 10-K and other filings with theSecurities and Exchange Commission. Honeywell International Inc Consolidated Statement of Operations (Unaudited) (In millions, except per share amounts) Three Months Ended March 31, 2013 2012 Product sales $ 7,474 $ 7,377Service sales 1,854 1,930Net sales 9,328 9,307 Costs, expenses and other Cost of products sold (A) 5,567 5,571 Cost of services sold (A) 1,216 1,309 6,783 6,880 Selling, general and administrative expenses (A) 1,229 1,231 Other (income) expense (28) (15) Interest and other financial charges 84 89 8,068 8,185 Income before taxes 1,260 1,122Tax expense 291 297 Net income 969 825 Less: Net income attributable to the noncontrolling interest 3 2 Net income attributable to Honeywell $ 966

$ 823

Earnings per share of common stock - basic $ 1.23

$ 1.06

Earnings per share of common stock - assuming dilution $ 1.21

$ 1.04

Weighted average number of shares outstanding-basic 785.8 777.3 Weighted average number of shares outstanding - assuming dilution 797.1 788.1

(A) Cost of products and services sold and selling, general and administrative

expenses include amounts for repositioning and other charges, pension and other

postretirement expense, and stock compensation expense. Honeywell International Inc. Segment Data (Unaudited) (Dollars in millions) Three Months Ended March 31, Net Sales 2013 2012 Aerospace $ 2,911 $ 2,950 Automation and Control Solutions 3,786 3,788 Performance Materials and Technologies 1,717 1,615 Transportation Systems 914 954 Total $ 9,328 $ 9,307 Reconciliation of Segment Profit to Income Before Taxes Three Months Ended March 31, Segment Profit 2013 2012 Aerospace $ 551 $ 534 Automation and Control Solutions 523 491 Performance Materials and Technologies 374 319 Transportation Systems 111 120 Corporate (51) (49) Total Segment Profit 1,508 1,415 Other income (expense) (A) 19 5Interest and other financial charges (84) (89)Stock compensation expense (B) (54) (51)Pension ongoing income (expense) (B) 21 (13)Other postretirement income (expense) (B) (22) (23)Repositioning and other charges (B) (128) (122) Income before taxes $ 1,260 $ 1,122

(A) Equity income (loss) of affiliated companies is included in Segment Profit.

(B) Amounts included in cost of products and services sold and selling, general and administrative expenses.

Honeywell International Inc. Consolidated Balance Sheet (Unaudited) (Dollars in millions) March 31, December 31, 2013 2012 ASSETSCurrent assets: Cash and cash equivalents $ 4,539 $ 4,634 Accounts, notes and other receivables 7,585 7,429 Inventories 4,297 4,235 Deferred income taxes 672 669 Investments and other current assets 588 631 Total current assets 17,681 17,598 Investments and long-term receivables 738 623Property, plant and equipment - net 4,948 5,001Goodwill 12,386 12,425Other intangible assets - net 2,384 2,449Insurance recoveries for asbestos related liabilities 654 663Deferred income taxes 1,842 1,889Other assets 1,167 1,205 Total assets $ 41,800 $ 41,853 LIABILITIES AND SHAREOWNERS' EQUITYCurrent liabilities: Accounts payable $ 4,444 $ 4,736 Short-term borrowings 86 76 Commercial paper 1,200 400 Current maturities of long-term debt 626 625 Accrued liabilities 6,755 7,208 Total current liabilities 13,111 13,045 Long-term debt 5,787 6,395Deferred income taxes 683 628Postretirement benefit obligations other than pensions 1,338 1,365Asbestos related liabilities 1,300 1,292Other liabilities 5,896 5,913 Redeemable noncontrolling interest 152 150Shareowners' equity 13,533 13,065 Total liabilities, redeemable noncontrolling interest and shareowners' equity $ 41,800 $ 41,853 Honeywell International Inc. Consolidated Statement of Cash Flows (Unaudited) (Dollars in millions) Three Months Ended March 31, 2013 2012 Cash flows from operating activities: Net income attributable to Honeywell $ 966 $ 823 Adjustments to reconcile net income attributable to Honeywell to net cash provided by operating activities: Depreciation and amortization 248 230 Repositioning and other charges 128 122 Net payments for repositioning and other charges (98) (104) Pension and other postretirement expense 1 36 Pension and other postretirement benefit payments (171) (289) Stock compensation expense 54 51 Deferred income taxes 27 132 Excess tax benefits from share based payment arrangements (24) (12) Other (33) (7) Changes in assets and liabilities, net of the effects of acquisitions and divestitures: Accounts, notes and other receivables (142) (40) Inventories (51) (108) Other current assets 18 (28) Accounts payable (295) (203) Accrued liabilities (287) (407) Net cash provided by operating activities

341 196

Cash flows from investing activities: Expenditures for property, plant and equipment (148) (152) Proceeds from disposals of property, plant and equipment - 1 Increase in investments (174) (84) Decrease in investments 166 92 Cash paid for acquisitions, net of cash acquired (122) (1) Other (33) 22 Net cash used for investing activities

(311) (122)

Cash flows from financing activities: Net increase in commercial paper 800 349 Net increase in short-term borrowings 8 7 Proceeds from issuance of common stock 164 90 Proceeds from issuance of long-term debt 7 2 Payments of long-term debt (600) - Excess tax benefits from share based payment arrangements 24 12 Repurchases of common stock (139) - Cash dividends paid (322) (291) Net cash (used for)/provided by financing activities

(58) 169

Effect of foreign exchange rate changes on cash and cash equivalents (67) 47Net (decrease)/increase in cash and cash equivalents (95) 290Cash and cash equivalents at beginning of period 4,634 3,698Cash and cash equivalents at end of period $ 4,539 $ 3,988 Honeywell International Inc. Reconciliation of Cash Provided by Operating Activities to Free Cash Flow, Prior to Cash Pension Contributions (Unaudited) (Dollars in millions) Three Months Ended Twelve Months Ended March 31, December 31, 2013 2012 2012 Cash provided by operating activities $ 341

$ 196 $3,517

Expenditures for property, plant and equipment (148) (152) (884) Free cash flow $ 193 $ 44 $2,633 Cash pension contributions 134 256 1,039 Free cash flow, prior to cash pension contributions $ 327

$ 300 $3,672

We define free cash flow as cash provided by operating activities, less cash expenditures for property, plant andequipment.

We believe that this metric is useful to investors and management as a measure of cash generated by business operationsthat will be used to repay scheduled debt maturities and can be used to invest in future growth through new businessdevelopment activities or acquisitions, and to pay dividends, repurchase stock, repay debt obligations prior to theirmaturities, or make cash pension contributions. This metric can also be used to evaluate our ability to generate cashflow from business operations and the impact that this cash flow has on our liquidity. Honeywell International Inc Reconciliation of Segment Profit to Operating Income and Calculation of Segment Profit and Operating Income Margins (Unaudited) (Dollars in millions) Three Months Ended March 31, 2013 2012 Segment Profit $ 1,508 $ 1,415 Stock compensation expense (A) (54) (51)Repositioning and other (A, B) (137) (132)Pension ongoing income (expense) (A) 21 (13)Other postretirement income (expense) (A) (22) (23) Operating Income $ 1,316 $ 1,196 Segment Profit $ 1,508 $ 1,415÷ Sales $ 9,328 $ 9,307Segment Profit Margin % 16.2% 15.2% Operating Income $ 1,316 $ 1,196÷ Sales $ 9,328 $ 9,307Operating Income Margin % 14.1% 12.9%

(A) Included in cost of products and services sold and selling, general and administrative expenses.(B) Includes repositioning, asbestos, environmental expenses and equity income adjustment.

We believe these measures are useful to investors and management inunderstanding our ongoing operations and in analysis of ongoing operating trends. Honeywell International Inc Reconciliation of Segment Profit to Operating Income

Excluding Pension

Mark-to-Market Adjustment and Calculation of Segment

Profit and

Operating Income Margins Excluding Pension Mark-to-Market Adjustment (Unaudited) (Dollars in millions) Twelve Months Ended December 31, 2012 2013 Guidance Segment Profit $ 5,879 $6,200 - 6,400 Stock compensation expense (A) (170) ~(200)Repositioning and other (A, B) (488) (450) - (500)Pension ongoing expense (A) (36) ~75Pension mark-to-market adjustment (A) (957) TBDOther postretirement income (expense) (A) (72) ~(80) Operating Income $ 4,156 $5,545 - 5,695Pension mark-to-market adjustment (A) $ (957) TBDOperating Income excluding pension mark-to-market adjustment $

5,113 $5,545 - 5,695

Segment Profit $ 5,879 $6,200 - 6,400÷ Sales $ 37,665 $38,800 - 39,300Segment Profit Margin %

15.6% 15.9 - 16.2%

Operating Income $ 4,156 $5,545 - 5,695÷ Sales $ 37,665 $38,800 - 39,300Operating Income Margin %

11.0% 14.3 - 14.6%

Operating Income excluding pension mark-to-market adjustment $ 5,113 $5,545 - 5,695÷ Sales $ 37,665 $38,800 - 39,300Operating Income Margin excluding pension mark-to-market adjustment % 13.6% 14.3 - 14.6%

(A) Included in cost of products and services sold and selling, general and administrative expenses.(B) Includes repositioning, asbestos, environmental expenses and equity income adjustment.

We believe these measures are useful to investors and management in understanding our ongoing operations and inanalysis of ongoing operating trends.

Honeywell International Inc Reconciliation of Earnings Per Share to Earnings Per Share, Excluding Pension Mark-to-Market Adjustment 2012 EPS $ 3.69 Pension mark-to-market adjustment 0.79 EPS, excluding pension mark-to-market adjustment $ 4.48

We believe EPS, excluding pension mark-to-market adjustment is a measure that

is useful to investors and management in understanding our ongoing operations and in analysis of ongoingoperating trends.

EPS utilizes weighted average shares outstanding of 791.9 million.Mark-to-market uses a blended tax rate of 35.0%.

Contacts:Media Investor RelationsRobert C. Ferris Elena Doom(973) 455-3388 (973) 455-2222rob.ferris@honeywell.com elena.doom@honeywell.com SOURCE Honeywell