Honeywell 2014 Annual Report Download - page 32

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•Sales in our Process Solutions business were flat (increased 1% organic) principally due to
decreased volume reflecting the completion of several large projects as expected offset by
service and software solutions volume growth.
•Advanced Materials sales decreased by 3% primarily driven by (i) lower Flourine Products
volume (due to the unfavorable impact of unseasonably cool weather on refrigerant volume and
planned plant outages in the first half of 2013) and price, (ii) soft end market conditions in
Electronic Materials and (iii) lower production volume in Resins and Chemicals.
PMT segment profit increased by 11% due to a 6% increase in operational segment profit and a
5% increase from acquisitions. The increase in operational segment profit is primarily due to higher
UOP sales volume and positive impact of productivity, net of inflation and investment for growth. Cost
of products and services sold totaled $6.9 billion in 2013, an increase of $347 million which is primarily
due to acquisitions and inflation, partially offset by productivity.
Repositioning Charges
See Note 3 Repositioning and Other Charges of Notes to Financial Statements for a discussion of
our repositioning actions and related charges incurred in 2014, 2013 and 2012. These repositioning
actions are expected to generate incremental pretax savings of $100 million to $125 million in 2015
compared with 2014 principally from planned workforce reductions. Cash spending related to our
repositioning actions was $161 million, $160 million and $136 million in 2014, 2013 and 2012,
respectively, and was funded through operating cash flows. In 2015, we expect cash spending for
repositioning actions to be approximately $150 million and to be funded through operating cash flows.
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