Honeywell 2014 Annual Report Download - page 2

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Shareowner Letter—2015
We had another very good performance in another “weakish” year in the global economy.
There has been a string of them. We grew sales 4% to $40.5 billion and grew earnings per
share 12% to $5.56.* The dividend was raised 15% to $2.07 per share. And importantly, we
continued seed planting for new products, services, geographies, technologies, and process
improvements. In addition to doing well, we also invested to ensure we have a good future.
Initial Five Year Plan
We completed the last year of our initial five-year plan established in March 2010 with
flying colors.
Sales Margin Rate
2009 2014* Actual 2014 Target 2009 2014* Actual 2014 Target
$30.0
$40.5
$41-45
13.3%
16-18%
17.0%
Despite a tougher environment than expected, we about touched the low end of the
sales number (and would have if we hadn’t sold Friction Materials, which was a smart thing to
do) and we were well within the margin rate range forecasted five years ago. Not bad given
how many proclaimed the original plan “ambitious and aspirational, so what do you really
think you will do?”
That success led us to development of our next five year plan promising double digit
earnings growth over the next five years. Our commitment at the March 5, 2014 Investor Day
is shown below.
Sales Segment Margin Rate
$39.1 $40.5
$46-51
2013 2014* 2018 Target 2013 2014* 2018 Target
16.3% 17.0%
18.5-20%
* Sales, V% exclude 4Q14 $184M OEM Incentives; EPS, V% exclude pension mark-to-market adjustment