Honeywell 2014 Annual Report Download - page 28

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Review of Business Segments
2014 2013 2012
2014
Versus
2013
2013
Versus
2012
% Change
Years Ended December 31,
Aerospace Sales
Commercial Original Equipment . . . . . . . $ 2,607 $ 2,651 $ 2,568 (2)% 3%
Commercial Aftermarket . . . . . . . . . . . . . . 4,578 4,459 4,364 3% 2%
Defense and Space . . . . . . . . . . . . . . . . . . 4,754 4,870 5,108 (2)% (5)%
Transportation Systems . . . . . . . . . . . . . . 3,659 3,755 3,561 (3)% 5%
Total Aerospace Sales . . . . . . . . . . . 15,598 15,735 15,601
Automation and Control Solutions
Sales
Energy Safety & Security . . . . . . . . . . . . . 9,738 8,756 8,123 11% 8%
Building Solutions & Distribution . . . . . . 4,749 4,709 4,664 1% 1%
Total Automation and Control
Solutions Sales . . . . . . . . . . . . . . . . 14,487 13,465 12,787
Performance Materials and
Technologies Sales
UOP. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,195 2,962 2,253 8% 31%
Process Solutions . . . . . . . . . . . . . . . . . . . . 3,122 3,091 3,093 1% —
Advanced Materials . . . . . . . . . . . . . . . . . . 3,904 3,802 3,931 3% (3)%
Total Performance Materials and
Technologies Sales . . . . . . . . . . . . 10,221 9,855 9,277
Net Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $40,306 $39,055 $37,665
Aerospace
2014 2013 Change 2012 Change
Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $15,598 $15,735 (1)% $15,601 1%
Cost of products and services sold . . . . . . . . . . . . . . 11,699 11,889 11,863
Selling, general and administrative expenses . . . . 712 705 763
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 272 271 264
Segment profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,915 $ 2,870 2% $ 2,711 6%
Factors Contributing to Year-Over-Year Change Sales
Segment
Profit Sales
Segment
Profit
2014 vs. 2013 2013 vs. 2012
Organic growth/ Operational segment profit . . . . . . . . . . . . . 2% 8% 1% 6%
Acquisitions, divestitures and other, net . . . . . . . . . . . . . . . . . (3)% (6)% — —
Total % Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1)% 2% 1% 6%
2014 compared with 2013
Aerospace sales decreased primarily due to the Friction Materials divestiture and an increase in
incentive payments due to air transport and regional and business and general aviation original
equipment (OE) manufacturers (OEM Incentive Payments), partially offset by an increase in organic
sales, as discussed below.
•Commercial Original Equipment sales decreased by 2% (increased by 3% organic) primarily due
to an increase in OEM Incentive Payments to air transport and regional OE manufacturers,
partially offset by higher air transport volumes, consistent with the OE Manufacturers’ higher
production rates, and business and general aviation engine shipments.
•Commercial Aftermarket sales increased by 3% driven primarily by higher sales of spare parts to
air transport and regional customers, partially offset by a decline in retrofits, modifications and
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