Honeywell recently announced the results of the fourth quarter and the whole year of 2021, and achieved various indicators in a challenging operating environment, reaching or even exceeding the range of performance guidance and prediction!

In the fourth quarter, the sales volume was US $8.657 billion, a year-on-year decrease of 3%, of which the endogenous sales decreased by 2%, and the market demand remained strong; Orders achieved high single digit growth, and the amount of undelivered orders was US $28 billion, a year-on-year increase of 7%; The operating profit margin was 17.5%, down 130 basis points; Increase the profit margin by 4.21 basis points; Earnings per share was $2.09, exceeding the midpoint of the company’s performance guidance range.
In 2021, the annual sales reached US $34.392 billion, with a year-on-year increase of 5%, the endogenous sales increased by 4%, the operating profit margin increased by 50 basis points, the departmental profit margin increased by 60 basis points, and the adjusted annual earnings per share of the company was US $8.06, exceeding the upper limit of the initial performance guidance range.
“Honeywell has always paid close attention to the chairman and chief executive officer of Honeywell and remained full of challenges for another year.”
Honeywell focuses on the strategy of providing differentiated solutions to promote the business lines such as warehousing and workflow solutions, productivity solutions and services, business aircraft and general aviation, high-performance materials and general Internet software to achieve double-digit endogenous sales growth in 2021.
Honeywell responded to inflation in advance with strict cost management and rapid pricing measures, and further improved productivity, so that the profit margin of the Department increased by 60 basis points and the adjusted earnings per share increased by 14% year-on-year. In addition, we also created strong cash flow in the current year, achieving US $6 billion of operating cash flow (conversion rate of 109%) and US $5.7 billion of free cash flow (adjusted conversion rate of 102%), and the profit margin of free cash flow reached 17%.
Honeywell’s balance sheet remains strong. Honeywell continued to focus on and implement its capital deployment strategy, including investing in high return capital expenditure, repurchasing $3.4 billion of Honeywell shares, completing four acquisitions and announcing the 12th dividend increase in 11 years. Capital deployment exceeded operating cash flow in 2021, and Honeywell will continue to do so in 2022.
Du Ruizhe concluded: “The macroeconomic environment is challenging, but I am proud of Honeywell’s achievements. By introducing alternative suppliers, redesigning parts and implementing pricing measures, we have quickly alleviated the impact of supply chain challenges and inflation. In addition, we have always focused on growth and increased investment in emerging markets and technologies, such as the environment, society and the public ESG enabled solutions and the creation of quantum, the world’s largest and most advanced comprehensive independent quantum computing company. I firmly believe that we are in a favorable position in the short and long term to continue to benefit shareholders, customers and employees. “
For 2022 and the future, Honeywell also made a vision:

• The company’s sales volume is expected to reach 35.4 billion – 36.4 billion US dollars; The year-on-year growth rate was 4%-7%, or 5%-8% (excluding the influence of COVID-19 related mask sales).
• The profit margin of the Department increased by 10-50 basis points, including the impact of 30 basis points brought by the newly merged quantum business;
• Earnings per share reached $8.40-8.70, up 4% – 8% after adjustment;
• Operating cash flow reached US $5.7 billion to US $6.1 billion, and free cash flow reached US $4.7 billion to US $5.1 billion.