|Company Name:||Honeywell International Inc.|
|Event Title:||Business Update Call Transcript|
|Event Time:||09:00 AM ET|
Good day ladies and gentlemen welcome to Honeywell's 2014 outlook call. At this time all participants have been placed in a listen-only mode and the floor will be open for your questions following the presentation. [Operator Instructions].
As a reminder, this conference call is being recorded. I would now like to introduce your host for today's conference Elena Doom, Vice President of Investor Relations.
Thank you, Zack and good morning, welcome to Honeywell's 2014 outlook conference call. Here with me today is Senior Vice President and CFO Dave Anderson and Vice President of Corporate Finance, Tom Szlosek.
Today's call and webcast including any non-GAAP reconciliations are available on our website at honeywell.com/investor. Note that elements of today's presentation do contain forward-looking statements that are based on our best view of the world and of our businesses as we see them today. Those elements can change and we ask that you would interpret them in that light. We identify the principal risks and uncertainties that effect our performance in our Form 10-K and other SEC fillings.
This morning we'll review our financial expectations for the remainder of 2013 and discuss our 2014...
...on a pro forma basis and consistent with what we gave you back in October.
And lastly, we also expecting free cash flow of approximately 3.7 billion for the year. Of course those numbers are prior to any NARCO-related cash outflows and any cash pension contributions.
So 2013 is certainly shaping as a good reminder of the importance of Honeywell's portfolio. The balance that we have which is helping us offset some of the headwinds that we've experienced over the course of 2013, specifically in Defense and also in the Advanced Materials business with PMT .
And the businesses importantly all executed very well this year, delivering margin expansion in every SPG, in each business in 2012.
Now some of the keys obviously:new products, geographic expansion, traction on process initiatives, all of these are contributing to growth in each of our end markets, enabling pricing power and delivering further margin expansion.
Another important driver is of course the productivity we've seen this year, which continues to be partially benefited from previously funded restructuring or repositioning actions. We continue to be proactive about maintaining a robust pipeline of repositioning projects. We think this is critical to supporting our sustained margin growth in 2014 and beyond. In the course, the continued focus on top-line, we are investing in new products and technologies, investing in expansion and high growth regions and we're also investing in high ROI capacity, to build the growth momentum in our businesses.