Honeywell 1Q Earnings Rise 24%; ACS Sales Increase 2%

MORRIS TOWNSHIP, N.J.

April 19, 2005 SSI Staff

Honeywell announces first-quarter earnings per share of 42
cents, an increase of 8 cents, or 24 percent, above the
prior year. Sales of $6.5 billion were up 4 percent on a
reported basis, reflecting 6 percent organic sales growth
offset by the net impact of acquisitions and divestitures.
Net income was $359 million for the quarter, up from $295
million last year. Cash flow from operations was $329
million and free cash flow (cash flow from operations less
capital expenditures) was $194 million.

“We are very pleased with first-quarter results,” said
Dave Cote, Honeywell chairman and CEO, in a
statement. “This is a terrific start to the year. Organic
growth and strong operational execution contributed to
better than expected performance in the quarter. In
addition, we completed the Novar acquisition, and are well
on the way to successfully integrating Novar’s IBS business
into Honeywell. We are excited about the fit of IBS into
our core fire, environmental controls, security and
services businesses, and the overall market and
distribution opportunities it brings to Honeywell.”

Honeywell’s Automation and Control Solutions (ACS), in
which its security and fire/life-safety products companies
reside, was cited by Cote as “experiencing strong sales
growth.” ACS sales were up 2 percent, compared with the
first quarter of 2004, driven by growth in Life Safety and
Security, partially offset by prior year divestitures.
Honeywell Int’l is a $26 billion diversified technology and
manufacturing company.

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