Honeywell (HON) Looks to Comment on DoD Strategy and Reaffirm FY12-FY14 Guidance During Conference

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Revenue Growth %: +4.5%

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Honeywell (NYSE: HON) today will discuss its Defense and Space (D&S) strategy and reiterate its financial guidance for the business for the remainder of 2012 and through 2014 at the Cowen & Company Annual Aerospace/Defense Conference in New York, NY.

"We have been in active dialogue with our Defense customer base and are very attuned to the budget challenges and ongoing need for creative responses and solutions," said Mike Madsen, Vice President, Honeywell Defense and Space. "We understand this requires new thinking on how to best serve your customer given new market dynamics. We believe Honeywell is well positioned in this environment with our organizational structure, since we share a common supply chain and engineering workforce between our commercial and defense businesses. This flexibility allows us to more quickly adapt and flex our workforce to support our growing commercial business and simultaneously meet the changing needs and demands of the military. We already have a very efficient organization coming out of the commercial downturn of 2008/2009, and this will serve us well as we face the challenges in the defense business that lay ahead."

"Over the past few years, Honeywell has done a terrific job in expanding into international markets and attractive adjacencies that fit with our great position in good industries approach. In addition, we're working closely with the Department of Defense (DoD) in providing retrofits and upgrades, which are improving efficiency and safety, while extending the life of several proven platforms. We're also using our company-wide expertise in energy efficiency to help DoD save millions of gallons of fuel per year. Through these programs and others, we're offering real solutions based on existing Honeywell technologies and programs to help the military cut costs while actually enhancing mission capability."

"Once implemented, our technologies will be real 'game-changers' in helping the military become more efficient without sacrificing functionality, precision, or the safety of our Country. Fuel efficiency really translates to greater combat capability," concluded Madsen.

Honeywell forecasts modest declines in its D&S business going forward following a 2% decline in 2011. The company expects a 4-5% decline in D&S in 2012, which is consistent with previously announced guidance, and sees stabilization some time in 2013, followed by a return to slow growth in 2014.

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