Honeywell touts $10 billion capital investment, reaffirms 2015 guidance

By Lisa Kerner

Charlotte, N.C., Dec. 16 – Honeywell International Inc.’s improvements to its M&A organization and processes are “bearing fruit across the entire portfolio,” according to senior vice president and chief financial officer Szlosek.

The company announced five acquisitions in four months and will deploy $5.5 billion in capital when the transactions close, Szlosek said during the company’s 2016 outlook presentation on Wednesday.

“All in for 2015, we are deploying approximately $10 billion in capital, through cap ex, dividends, M&A and share repurchases, or roughly 2.5 times the amount we deployed in 2014,” said Szlosek.

It was an “exciting year of putting our capital to work,” he said.

Honeywell also has “significant balance sheet fire power heading into 2016, the CFO said.

Looking ahead, the company expects sales to grow 4% to 6% in 2016 to between $39.9 billion and $40.9 billion.

Free cash flow is expected to be up 8% to 13% to between $4.6 billion and $4.8 billion.

The company reaffirmed its 2015 guidance of sales of about $38.5 billion and free cash flow of $4.2 billion and $4.3 billion.

Honeywell increased its dividend rate by 15%. It has increased the dividend 11 times in the past 10 years, according to Szlosek. The company has also completed $1.9 billion of opportunistic share repurchases.

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