Final Results

Honeywell Reports Full Year Sales Up 3% to $37.7 Billion; Proforma Earnings Per

Share Up 11% to $4.48 Per Share; Reported Earnings Per Share of $3.69

- 2012 Earnings Growth Driven By Strong Operational Performance

- Record Segment Margin Of 15.6%, Up 90 bps YoY; Operating Margin 13.6% Up 160 bps YoY

- Pension Mark-to-Market Adjustment As Expected - ($0.79) Per Share

- Reaffirming 2013 Proforma EPS Guidance Of $4.75-4.95, Up Another 6-11% Over 2012

MORRIS TOWNSHIP, N.J., Jan. 25, 2013 -- Honeywell (NYSE: HON) today announced its results for the fourth quarter and full year 2012:

Total Honeywell ($ Millions, except Earnings Per Share) FY 2011 FY 2012 Change Sales 36,529 37,665 3% Segment Margin 14.7% 15.6% 90 bps Operating Income Margin(1) 12.0% 13.6% 160 bps Earnings Per Share (Reported) $2.61 $3.69 41% Earnings Per Share (Proforma)(1) $4.05 $4.48 11% Cash Flow from Operations 2,833 3,517 24% Free Cash Flow(2) 3,780 3,672 (3%) 4Q 2011 4Q 2012 Change Sales 9,473 9,581 1% Segment Margin 15.1% 15.6% 50 bps Operating Income Margin(1) 12.9% 13.9% 100 bps Earnings Per Share (Reported) ($0.40) $0.32 N/A Earnings Per Share (Proforma)(1) $1.05 $1.10 5% Cash Flow from Operations 1,477 1,349 (9%) Free Cash Flow(2) 1,417 1,311 (7%) 1. Proforma, V%/bps Exclude Any Pension Mark-to-Market Adjustment

2. Free Cash Flow (Cash Flow from Operations Less Capital Expenditures) Prior

to Cash Pension Contributions "Honeywell had another year of terrific performance in 2012," said HoneywellChairman and CEO Dave Cote. "In a weak global economy, we grew sales 3% andearnings by 11%, while expanding margins to record levels and continuing togenerate strong cash flow. We outperformed while also continuing to invest inseed planting initiatives like new products and services, global growth, costcompetitiveness, and strengthening our key processes -- Honeywell OperatingSystem, Velocity Product Development™, and Functional Transformation. Ourbalanced mix of long- and short-cycle businesses and expansion in high growthregions has offset lower demand in some of our short-cycle businesses, Europeanweakness, and foreign exchange headwinds. We've also maintained a stronglong-cycle backlog, now a record $15.8 billion, with new platform wins acrossmany of our businesses last year. These positive trends, combined with ourgreat positions in good industries, conservative planning, and the continuedevolution of our internal processes will help Honeywell drive sales, margingrowth, cash generation, and EPS outperformance in 2013 and over thelong-term."The company is also reaffirming its full-year 2013 sales and EPS guidance:Full Year Guidance 2013 Change Current Guidance vs. 2012 Sales $39.0 - $39.5B 4 - 5% Segment Margin 15.8 - 16.1% 20 - 50 bps Operating Income Margin(1) 14.2 - 14.5% 60 - 90 bps Earnings Per Share(1) $4.75 - $4.95 6 - 11% Free Cash Flow(2) ~$3.7B ~Flat

1. Proforma, V% / bps Exclude Any Pension Mark-to-Market Adjustment

2. Free Cash Flow (Cash Flow from Operations Less Capital Expenditures) Priorto Any NARCO Related Payments and Cash Pension Contributions

Segment Performance

Aerospace

($ Millions) FY 2011 FY 2012 % Change

Sales 11,475 12,040 5% Segment Profit 2,023 2,279 13% Segment Margin 17.6% 18.9% 130 bps 4Q 2011 4Q 2012 % ChangeSales 3,047 3,020 (1%) Segment Profit 573 601 5% Segment Margin 18.8% 19.9% 110 bps

* Sales were down (1%) compared with the fourth quarter of 2011 driven by a

(6%) decline in Defense and Space, partially offset by a 3% increase in our

commercial end markets. Commercial original equipment (OE) sales were up 5%

driven by increased production rates at our major OE customers. Commercial

aftermarket sales were up 3% driven by higher maintenance activity.

* Segment profit was up 5%, and segment margins expanded 110 bps to 19.9%,

primarily due to commercial excellence, productivity net of inflation, and

lower BGA OE payments, partially offset by investments for growth.

Automation and Control Solutions ($ Millions) FY 2011 FY 2012 % ChangeSales 15,535 15,880 2% Segment Profit 2,083 2,232 7% Segment Margin 13.4% 14.1% 70 bps ($ Millions) 4Q 2011 4Q 2012 % ChangeSales 4,051 4,172 3% Segment Profit 584 645 10% Segment Margin 14.4% 15.5% 110 bps

* Sales were up 3% compared with the fourth quarter of 2011 as volume growth

and the favorable impact of acquisitions, net of divestitures was partially

offset by foreign exchange headwinds. Energy, Safety, and Security was up 4% organically due to acceleration of growth in Environmental and Combustion Controls and continued growth in Scanning & Mobility and

Security. Process Solutions and Building Solutions and Distribution grew at

a slower rate, reflecting a more challenging capital investment

environment.

* Segment profit was up 10% and segment margins were up 110 bps to 15.5%

driven by commercial excellence and strong productivity net of inflation

and other investments for growth, including the favorable impact of

previously completed restructuring actions.

Performance Materials and Technologies ($ Millions) FY 2011 FY 2012 % Change Sales 5,659 6,184 9% Segment Profit 1,042 1,154 11% Segment Margin 18.4% 18.7% 30 bps ($ Millions) 4Q 2011 4Q 2012 % Change Sales 1,430 1,545 8% Segment Profit 223 210 (6%) Segment Margin 15.6% 13.6% (200 bps)

* Sales were up 8% reported, 2% organic, compared with the fourth quarter of

2011, resulting from the Thomas Russell acquisition in UOP, partially

offset by lower volume of petrochemical and refining catalysts. Advanced

Materials sales were up 5% driven by new products and applications,

partially offset by challenging end market conditions.

* Segment profit declined (6%) and segment margins contracted (200 bps) to

13.6% in the fourth quarter primarily due to lower catalyst sales in UOP,

unfavorable price/raws spread in Resins and Chemicals and challenging end

market conditions, partially offset by productivity net of labor inflation

and investments for growth.

Transportation Systems ($ Millions) FY 2011 FY 2012 % Change Sales 3,859 3,561 (8%) Segment Profit 485 432 (11%) Segment Margin 12.6% 12.1% (50 bps) ($ Millions) 4Q 2011 4Q 2012 % Change Sales 944 844 (11%) Segment Profit 117 94 (20%) Segment Margin 12.4% 11.1% (130 bps)

* Sales were down (11%), down (8%) organic, compared with the fourth quarter

of 2011, driven by lower European light vehicle production and aftermarket

sales, partially offset by new platform launches and higher gas turbo

penetration, primarily in the U.S. and China.

* Segment profit was down (20%) in the fourth quarter and segment margins

decreased (130 bps) to 11.1% primarily driven by lower sales volumes and

price, unfavorable foreign exchange, and ongoing projects to drive

operational improvement in the Friction Materials business, partially

offset by productivity benefits.

Honeywell will discuss its results during its investor conference call todaystarting at 9:00 a.m. EST. To participate on the conference call, please dial(800) 862-9098 (domestic) or (785) 424-1051 (international) a few minutesbefore the 9:00 a.m. EST start. Please mention to the operator that you aredialing in for Honeywell's fourth quarter 2012 earnings call or provide theconference code, HONQ412. You can hear a replay of the conference call from 12:00 p.m. EST, January 25, until 11:59 p.m. EST, February 1, by dialing (800)374-1216 (domestic) or (402) 220-0681 (international).A real-time audio webcast of the presentation can be accessed at http://www.honeywell.com/investor , where related materials will be posted prior to the presentation. The presentation materials will be in Adobe Acrobat format. A replay of the webcast will be available following the presentation at the same link listed above for 30 days.Honeywell (www.honeywell.com ) is a Fortune 100 diversified technology andmanufacturing leader, serving customers worldwide with aerospace products andservices; control technologies for buildings, homes, and industry; automotiveproducts; turbochargers; and performance materials. Based in Morris Township,N.J., Honeywell's shares are traded on the New York, London, and Chicago StockExchanges. For more news and information on Honeywell, please visit www.honeywellnow.com .This release contains certain statements that may be deemed "forward-lookingstatements" within the meaning of Section 21E of the Securities Exchange Act of1934. All statements, other than statements of historical fact, that addressactivities, events or developments that we or our management intends, expects,projects, believes or anticipates will or may occur in the future areforward-looking statements. Such statements are based upon certain assumptionsand assessments made by our management in light of their experience and theirperception of historical trends, current economic and industry conditions,expected future developments and other factors they believe to be appropriate.The forward-looking statements included in this release are also subject to anumber of material risks and uncertainties, including but not limited toeconomic, competitive, governmental, and technological factors affecting ouroperations, markets, products, services and prices. Such forward-lookingstatements are not guarantees of future performance, and actual results,developments and business decisions may differ from those envisaged by suchforward-looking statements.Contacts: Media Investor Relations Robert C. Ferris Elena Doom (973) 455-3388 (973) 455-2222 [email protected] [email protected] Honeywell International Inc Consolidated Statement of Operations (Unaudited) (In millions, except per share amounts) Three Months Twelve Months Ended Ended December 31, December 31, 2012 2011 2012 2011 Product sales $ 7,628 $ 7,478 $ 29,812 $ 28,745Service sales 1,953 1,995 7,853 7,784 Net sales 9,581 9,473 37,665 36,529 Costs, expenses and other Cost of products sold (A) 6,302 6,862 22,929 23,220 Cost of services sold (A) 1,379 1,573 5,362 5,336 7,681 8,435 28,291 28,556 Selling, general and administrative expenses (A) 1,523 1,616 5,218 5,399 Other (income) expense (16)

(12) (70) (84)

Interest and other financial charges 87 91 351 376 9,275 10,130 33,790 34,247 Income (loss) from continuing operations before taxes 306 (657) 3,875 2,282 Tax expense (benefit) 51 (350) 944 417

Income (loss) from continuing operations after taxes 255 (307) 2,931 1,865

Income from discontinued operations after taxes - - - 209 Net income (loss) 255 (307) 2,931 2,074

Less: Net income attributable to the noncontrolling

interest 4 3 5 7 Net income (loss) attributable to Honeywell $ 251 $

(310) $ 2,926 $ 2,067

Amounts attributable to Honeywell: Income (loss) from continuing operations less net income attributable to the noncontrolling interest 251

(310) 2,926 1,858

Income from discontinued operations - - - 209 Net income (loss) attributable to Honeywell $ 251 $

(310) $ 2,926 $ 2,067

Earnings per share of common stock - basic: Income (loss) from continuing operations 0.32

(0.40) 3.74 2.38

Income from discontinued operations - -

- 0.27

Net income (loss) attributable to Honeywell $ 0.32 $

(0.40) $ 3.74 $ 2.65

Earnings per share of common stock - assuming dilution: Income (loss) from continuing operations 0.32

(0.40) 3.69 2.35

Income from discontinued operations - -

- 0.26

Net income (loss) attributable to Honeywell $ 0.32 $

(0.40) $ 3.69 $ 2.61

Weighted average number of shares outstanding-basic 787.2 774.7

782.4 780.8

Weighted average number of shares outstanding - assuming dilution 796.4 784.3 791.9 791.6

(A) Cost of products and services sold and selling, general and administrative

expenses include amounts for repositioning and other charges, pension and other

postretirement expense, and stock compensation expense.

(B) Below is a reconciliation of Earnings per share to Earnings per share,

excluding mark-to-market pension expense. We believe this measure is useful to

investors and management in understanding our ongoing operations and in analysis of ongoing operating trends. Three Months Ended Twelve Months Ended December 31, December 31, 2012(1) 2011(1) 2012(1) 2011(1)

Earnings per share of common stock - assuming dilution $ 0.32 $ (0.40) $ 3.69 $ 2.61

Mark-to-market pension expense 0.78

1.45 0.79 1.44

Earnings per share of common stock - assuming dilution, excluding mark-to-market pension expense $ 1.10 $ 1.05 $ 4.48 $ 4.05

1- EPS utilizes weighted average shares outstanding and the effective tax rate

for the period. Mark-to-market uses a blended tax rate of 35.0% and 36.9% for 2012 and 2011, respectively Honeywell International Inc Segment Data (Unaudited) (Dollars in millions) Three Months Ended Twelve Months Ended December 31, December 31, Net Sales 2012 2011 2012 2011 Aerospace $ 3,020 $ 3,047 $ 12,040 $ 11,475

Automation and Control Solutions 4,172 4,051 15,880

15,535

Performance Materials and Technologies 1,545 1,430 6,184

5,659 Transportation Systems 844 944 3,561 3,859 Corporate - 1 - 1 Total $ 9,581 $ 9,473 $ 37,665 $ 36,529 Reconciliation of Segment Profit to Income From Continuing Operations Before Taxes Three Months Ended Twelve Months Ended December 31, December 31, Segment Profit 2012 2011 2012 2011 Aerospace $ 601 $ 573 $ 2,279 $ 2,023 Automation and Control Solutions 645 584 2,232

2,083

Performance Materials and Technologies 210 223 1,154

1,042 Transportation Systems 94 117 432 485 Corporate (54) (68) (218) (276) Total Segment Profit 1,496 1,429 5,879 5,357 Other income (expense) (A) 7 (3) 25 33 Interest and other financial charges (87) (91) (351) (376) Stock compensation expense (B) (39) (39) (170) (168) Pension ongoing expense (B) (7) (22) (36) (105) Pension mark-to-market expense (B) (957) (1,802) (957) (1,802) Other postretirement income/(expense) (B) (20) (23) (72) 86 Repositioning and other charges (B) (87) (106) (443) (743) Income (loss) from continuing operations before taxes $ 306 $ (657) $ 3,875 $ 2,282

(A) Equity income/(loss) of affiliated companies is included in Segment Profit.

(B) Amounts included in cost of products and services sold and selling, general and administrative expenses. Honeywell International Inc Consolidated Balance Sheet (Unaudited) (Dollars in millions) December 31, December 31, 2012 2011 ASSETS Current assets: Cash and cash equivalents $ 4,634 $

3,698

Accounts, notes and other receivables 7,429 7,228 Inventories 4,235 4,264 Deferred income taxes 669 460 Investments and other current assets 631 484 Total current assets 17,598 16,134 Investments and long-term receivables 623 494 Property, plant and equipment - net 5,001 4,804 Goodwill 12,425 11,858 Other intangible assets - net 2,449 2,477 Insurance recoveries for asbestos related liabilities 663 709 Deferred income taxes 1,889 2,132 Other assets 1,205 1,200 Total assets $ 41,853 $ 39,808 LIABILITIES AND SHAREOWNERS' EQUITY Current liabilities: Accounts payable $ 4,736 $ 4,738 Short-term borrowings 76 60 Commercial paper 400 599 Current maturities of long-term debt 625

15

Accrued liabilities 7,208

6,863

Total current liabilities 13,045 12,275 Long-term debt 6,395 6,881 Deferred income taxes 628 676 Postretirement benefit obligations other than pensions 1,365 1,417 Asbestos related liabilities 1,292 1,499 Other liabilities 5,913 6,158 Redeemable noncontrolling interest 150 - Shareowners' equity 13,065 10,902 Total liabilities, redeemable noncontrolling interest and shareowners' equity $ 41,853 $ 39,808 Honeywell International Inc Consolidated Statement of Cash Flows (Unaudited) (Dollars in millions) Three Months Twelve Months Ended Ended December 31, December 31, 2012 2011 2012 2011 Cash flows from operating activities: Net income (loss) attributable to Honeywell $

251 $ (310) $ 2,926 $ 2,067

Adjustments to reconcile net income (loss) attributable to

Honeywell to net cash provided by operating activities:

Depreciation and amortization 245 253 926 957 Gain on sale of non-strategic businesses and assets (2) (9) (5) (362) Repositioning and other charges 87 106 443 743 Net payments for repositioning and other charges (151) (133) (503) (468) Pension and other postretirement expense 984 1,847 1,065 1,823 Pension and other postretirement benefit payments (295) (315) (1,183) (1,883) Stock compensation expense 39 39 170 168 Deferred income taxes (235) (528) 84 (331) Excess tax benefits from share based payment arrangements (28) (11) (56) (42) Other 69 233 108 289 Changes in assets and liabilities, net of the effects of acquisitions and divestitures: Accounts, notes and other receivables 41 117 (119) (316) Inventories 78 130 25 (310) Other current assets (1) 78 (78) 25 Accounts payable 207 162 (13) 527 Accrued liabilities 60 (182) (273) (54) Net cash provided by operating activities

1,349 1,477 3,517 2,833

Cash flows from investing activities: Expenditures for property, plant and equipment

(298) (332) (884) (798)

Proceeds from disposals of property, plant and equipment 3 3 5 6 Increase in investments (220) (58) (702) (380) Decrease in investments 272 66 559 354 Cash paid for acquisitions, net of cash acquired

(376) (346) (438) (973)

Proceeds from sales of businesses, net of fees paid 3 (14) 21 1,156 Other 53 (43) 11 24 Net cash used for investing activities

(563) (724) (1,428) (611)

Cash flows from financing activities: Net (decrease)/increase in commercial paper

(499) (101) (199) 300

Net increase/(decrease) in short-term borrowings

3 2 22 (2)

Payment of debt assumed with acquisitions

- (33) - (33)

Proceeds from issuance of common stock

163 72 342 304

Proceeds from issuance of long-term debt

16 1 102 1,390

Payments of long-term debt

(1) (500) (1) (939)

Excess tax benefits from share based payment arrangements

28 11 56 42

Repurchases of common stock

(317) (76) (317) (1,085)

Cash dividends paid

(331) (295) (1,211) (1,091)

Net cash used for financing activities

(938) (919) (1,206) (1,114)

Effect of foreign exchange rate changes on cash and cash equivalents 26 (21) 53 (60) Net (decrease)/increase in cash and cash equivalents (126) (187) 936 1,048 Cash and cash equivalents at beginning of period 4,760 3,885 3,698 2,650 Cash and cash equivalents at end of period $ 4,634 $ 3,698 $ 4,634 $ 3,698 Honeywell International Inc Reconciliation of Cash Provided by Operating Activities to Free Cash Flow, Prior to Cash Pension Contributions (Unaudited) (Dollars in millions) Three Months Ended Twelve Months Ended December 31, December 31, 2012 2011 2012 2011 Cash provided by operating activities $ 1,349 $

1,477 $ 3,517 $ 2,833

Expenditures for property, plant and equipment (298) (332) (884) (798) Free cash flow $ 1,051 $ 1,145 $ 2,633 $ 2,035 Cash pension contributions 260 272 1,039 1,745 Free cash flow, prior to cash pension contributions $ 1,311 $ 1,417 $ 3,672 $ 3,780

We define free cash flow as cash provided by operating activities, less cash expenditures for property, plant and equipment.

We believe that this metric is useful to investors and management as a measure of cash generated by business operations that will be used to repay scheduled debt maturities and can be used to invest in future growth through new businessdevelopment activities or acquisitions, and to pay dividends, repurchase stock,repay debt obligations prior to their maturities, or make cash pension contributions. This metric can also be used to evaluate our ability to generatecash flow from business operations and the impact that this cash flow has on our liquidity. Honeywell International Inc. Reconciliation of Segment Profit to Operating Income Excluding Pension Mark-to-Market Adjustment and Calculation of Segment Profit and Operating Income Margin Excluding Pension Mark-to-Market Adjustment (Unaudited) (Dollars in millions) Three Months Ended Twelve Months Ended December 31, December 31, 2012 2011 2012 2011 Segment Profit $ 1,496 $ 1,429 $ 5,879 $ 5,357 Stock compensation expense (A) (39) (39)

(170) (168)

Repositioning and other (A, B) (96) (121) (488) (794) Pension ongoing expense (A) (7) (22) (36) (105) Pension mark-to-market adjustment (A) (957) (1,802)

(957) (1,802)

Other postretirement income/(expense) (A) (20) (23) (72) 86 Operating Income (Loss) $ 377 $ (578) $ 4,156 $ 2,574

Pension mark-to-market adjustment (A) $ (957) $ (1,802) $ (957) $ (1,802)

Operating Income excluding pension mark-to-market adjustment $ 1,334 $ 1,224 $ 5,113 $ 4,376 Segment Profit $ 1,496 $ 1,429 $ 5,879 $ 5,357 ÷ Sales $ 9,581 $ 9,473 $ 37,665 $ 36,529 Segment Profit Margin % 15.6% 15.1% 15.6% 14.7% Operating Income (Loss) $ 377 $ (578) $ 4,156 $ 2,574 ÷ Sales $ 9,581 $ 9,473 $ 37,665 $ 36,529 Operating Income (Loss) Margin % 3.9% (6.1%)

11.0% 7.0%

Operating Income excluding pension mark-to-market adjustment $ 1,334 $ 1,224 $ 5,113 $ 4,376 ÷ Sales $ 9,581 $ 9,473 $ 37,665 $ 36,529 Operating Income Margin excluding pension mark-to-market adjustment % 13.9% 12.9% 13.6% 12.0% (A) Included in cost of products and services sold and selling, general and administrative expenses. (B) Includes repositioning, asbestos, environmental expenses and equity income adjustment. We believe these measures are useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends. SOURCE Honeywell