Honeywell International Inc. Business Report FY ended Dec. 2012
Business Highlights
Recent Years
-The sales in FY2012 decreased by 7.7% to $3,561 million (FY2011: $3,859 million) primarily due to an unfavorable impact from foreign exchange of 5% and a decrease in organic sales of 3%.
-The lower sales in FY2012 were primarily driven by decreased light vehicle production in Europe and lower aftermarket sales partially offset by new platform launches, including higher turbo gas penetration in North America.
-In June 2011, the Company announced that it has signed a definitive agreement to acquire EMS Technologies, Inc., a U.S-based provider of connectivity solutions for mobile networking and satellite communications. The Company will purchase EMS for approximately 491 million USD. EMS's mobile resource management solutions include vehicle-mounted computers featuring multiple radio technologies and satellite-based tracking and monitoring solutions. The transaction is expected to close in the third quarter of 2011. (From a press release on June 13, 2011)
Joint Ventures
-In 2011, the Company and Sinochem Group of China announced that they have signed an agreement to form a 50/50 joint venture in China. The joint venture, to be located in Taicang, Jiangsu Province, will produce HFC-245fa, a non-ozone-depleting rigid foam blowing agent used in insulation for appliances, construction, transportation and other applications. The venture is expected to begin production in late 2013. Honeywell's newly launched next generation HFO blowing agent, Solstice Liquid Blowing Agent, may also be produced by the joint venture. The new joint venture will have exclusive rights to sell HFC-245fa in the Asia region. (From a press release on October 10, 2011)
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<2010>
<2009>
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Business Overview (FY ended Dec. 31, 2012)
Transportation Systems-The sales in FY2012 decreased by 7.7% to $3,561 million (FY2011: $3,859 million) primarily due to an unfavorable impact from foreign exchange of 5% and a decrease in organic sales of 3%.
-The lower sales in FY2012 were primarily driven by decreased light vehicle production in Europe and lower aftermarket sales partially offset by new platform launches, including higher turbo gas penetration in North America.
Acquisitions
-In Aug. 2011, the Company announced that its wholly-owned subsidiary Egret Acquisition Corp. completed the acquisition of EMS Technologies, Inc. Honeywell also announced that it intends to complete the acquisition of EMS through the merger of Egret Acquisition Corp. with and into EMS, with EMS as the surviving corporation. (From a press release on August 22, 2011)-In June 2011, the Company announced that it has signed a definitive agreement to acquire EMS Technologies, Inc., a U.S-based provider of connectivity solutions for mobile networking and satellite communications. The Company will purchase EMS for approximately 491 million USD. EMS's mobile resource management solutions include vehicle-mounted computers featuring multiple radio technologies and satellite-based tracking and monitoring solutions. The transaction is expected to close in the third quarter of 2011. (From a press release on June 13, 2011)
Divestitures
-In Oct. 2010, the Company announced that it has reached an agreement to sell its automotive on-board (AoB) sensor products business to Sensata Technologies, Inc. of Netherlands, for 140 million USD. The transaction is expected to close early in 2011. The Company's AoB sensor products include cam and crankshaft, transmission, vane, vehicle pressure, position and wheel speed sensors. The business has annual sales of approximately 130 million USD and is a component of the Company's Sensing and Control unit. (From a press release on October 28, 2010)Joint Ventures
-In 2011, the Company and Sinochem Group of China announced that they have signed an agreement to form a 50/50 joint venture in China. The joint venture, to be located in Taicang, Jiangsu Province, will produce HFC-245fa, a non-ozone-depleting rigid foam blowing agent used in insulation for appliances, construction, transportation and other applications. The venture is expected to begin production in late 2013. Honeywell's newly launched next generation HFO blowing agent, Solstice Liquid Blowing Agent, may also be produced by the joint venture. The new joint venture will have exclusive rights to sell HFC-245fa in the Asia region. (From a press release on October 10, 2011)Awards
-In 2012, the Company announced that it received Ford's silver-level World Excellence Award. In 2011, Honeywell's Atessa plant, in Italy had an average of 99.5% on-time delivery and quality levels at 6 parts-per-million (PPM) for the half-million turbos supplied to Ford. (From a press release on June 25, 2012)Contracts
<2012>| Products | Installed model | Engine |
| Turbocharger | Fiat "Viaggio" | 1.4-liter gasoline engine |
| Diesel VNT technology | Great Wall "Haval 5" | - |
| Diesel VNT technology | Great Wall "Haval 6" | - |
| Turbocharger | Chevrolet "Cruze Eco" | - |
| Turbocharger | Chevrolet "Sonic" | - |
| Turbocharger | Chevrolet "Dodge Dart" (2013 model) | - |
| Turbocharger | Fiat "500 Abarth" | - |
| Turbocharger | Chevrolet "Silverado" | - |
| Turbocharger | Volkswagen "Touareg" | - |
| Turbocharger | Tata "Indica V2" | 1.4-liter WG turbo engine |
<2011>
| Products | Installed model | Engine |
| Turbocharger | Chery "Riich G5" | 2.0-liter gasoline engine |
| Turbocharger | JAC "Refine" | 2.0-liter Four-cylinder diesel engine |
| Turbocharger | JAC "Rein" | 1.9-liter diesel engine |
<2010>
| Products | Installed model | Engine |
| Turbocharger | Chevrolet "Cruze Eco" | 1.4-liter |
| Ball bearing | Daimler "Mercedes S350 BlueTec" | 3.0-liter V6 diesel engine |
| TwoStage parallel turbocharger | Land Rover "Range Rover" (2011 model) | 4.4-liter V8 diesel engine |
| Turbocharger | Daimler "Mercedes S Class" | 4.6-liter V8 engine |
| Turbocharger | Daimler "CL Class" | 4.6-liter V8 engine |
| Turbocharger | Chevrolet "Cruze" (2011, USA model) | - |
| Turbocharger | Volkswagen "Polo" (2010, EU model) | - |
| Turbocharger | BMW "X-6 ActiveHybrid" | - |
| Turbocharger | GAC-Fiat | - |
| Turbocharger | JAC | - |
| VNT (Variable Nozzle Turbine) turbocharger | Ford "F-Series Super Duty" | 6.7-liter diesel engine |
| VNT (Variable Nozzle Turbine) turbocharger | Volkswagen "Polo BlueMotion" | 1.2-liter diesel engine |
| VNT (Variable Nozzle Turbine) turbocharger | GM | Duramax engines |
| Turbocharger | Chevrolet "Cruze" | 1.4-liter |
<2009>
| Products | Installed model | Engine |
| Turbocharger | BMW "760 Li", "X6 M", "X5 M" | - |
| Turbocharger system | Jaguar "XF" | 3.0-liter V6 diesel engine |
<2008>
| Products | Installed model | Engine |
| Turbocharger | Ford "Lincoln MKS" (2010 model) | 3.5-liter V6 diesel engine |
| Turbocharger | BMW "X6 xDrive50i" | V8 gasoline engine |
| Turbocharger | Audi "Audi A4" | 3.0-liter diesel engine |
| Turbocharger | Kia "Cee'd" | 1.6-liter diesel engine |
| VNT (Variable Nozzle Turbine) turbocharger | Tata "Safari" | - |
| VNT (Variable Nozzle Turbine) turbocharger | Tata "Xenon" | - |
R&D
R&D Expenditure |
(In million USD) |
| FY ended Dec. 31, 2012 | FY ended Dec. 31, 2011 | FY ended Dec. 3, 2010 | |
| Overall | 1,847 | 1,799 | 1,450 |
| % of sales | 4.9% | 4.9% | 4.5% |
-In 2010, the Company announced that it was awarded a grant worth 27.3 million USD from the U.S. Department of Energy, as part of the American Recovery Reinvestment Act. The grant is intended to help the Company become the first domestic supplier of lithium hexafluorophosphate (LiPF6), a conductive salt that is one of critical components in lithium-ion batteries used in hybrid and electric vehicles. The Company's LiPF6 production process was developed at its research and development facility in Buffalo, New York, USA. (From a press release on May 24, 2010)
R&D Structure
-The Company has research and development activities in the US, Europe, India and China.-In May 2008, the Company opened its Turbo Technologies Engineering and Test Center in Brno, Czech Republic. The new turbocharger R&D Center is its fifth facility in the global technical network. The facility houses integrated engineering and research services developing and validating the next generation of advanced turbochargers for both commercial and passenger vehicle applications. (From a press release on May 21, 2008)
Product Developments
Turbocharger-In 2012, Honeywell Turbo Technologies, a business unit of Honeywell Transportation Systems, has developed a turbo application with optimized aerodynamics for micro 2-cylinder diesel engines below 1.0L. This application is currently being deployed in India on 0.8L engines. Additionally, Honeywell has launched several turbocharger applications including turbochargers for Tata's Indica V2 model (1.4L WG turbo engine). Honeywell will also feature other innovations such as its variable geometry VNT turbos including its third generation VNT combined with a rotary electric actuator. Honeywell Turbo Technologies opened its manufacturing facility in Pune, India in 2005, and has subsequently expanded its Indian operations to include product development and testing activities for automotive applications at its Technology Center in Bangalore. (From a press release on January 2, 2012)
-In Sept. 2006, the Company has announced the launch of the world's first diesel parallel sequential dual stage turbo system, which makes its debut on the 4-cylinder engines of PSA group's Peugeot 407 and 607, and the Citroen C5 and C6. The new turbo system will be on display at the 2006 Paris Motor Show at Honeywell Turbo Technologies' stand. The development of the new dual-stage turbo system with PSA began in 2003. Rather than opting for a serial sequential turbocharging configuration, where a smaller high-pressure turbo works in advance of a much larger turbo, PSA and Honeywell selected for this engine platform the parallel sequential arrangement where two small turbos work side by side at high rpm but only one turbo delivers the torque at low rpm. (From a press release by the company on Sep. 28, 2006)
Car air conditioner refrigerant
-In 2010, a new car air conditioner refrigerant developed jointly by the Company and DuPont is likely to be used as a standard product by global automakers. The HFO-1234yf fluorinated gas solution is designed to meet European Union's low global warming potential (GWP) requirements, which will become effective in 2011. Carbon dioxide had also been considered as one of the potential candidates for an alternative refrigerant to comply with the world's most stringent GWP regulations. But the HFO-1234yf was finally chosen as the new global standard for its high levels of vehicle fuel economy and cost efficiency it can offer. The Company and DuPont are planning to start joint production of HFO-1234yf in 2011, aiming to establish a stable production structure for the international market by 2015. (From an article in the Nikkan Jidosha Shimbun on June. 28, 2010)
-In Aug. 2009, the Company announced that its new low GWP (global-warming-potential) refrigerant for vehicle air conditioning, HFO-1234yf, has been approved for import for commercial use by the Japanese government. For commercialization in Japan, HFO-1234yf has been reviewed by the Japanese authorities concerned with the Chemical Substances Control Law. Following these reviews, a decision has been made that the new refrigerant can be imported into Japan without volume restrictions, special controls or special monitoring. As HFO-1234yf can be used for current mobile air conditioning systems, it is easy to replace the refrigerant of existing vehicles. Its excellent cooling effect will reduce fuel consumption. The European Union's Mobile Air Conditioning Directive requires that all new vehicles produced starting in 2011 use a refrigerant with a GWP below 150. While HFC-134a, a refrigerant for current mobile air conditioning systems, has a GWP of 1,300, HFO-1234yf has a GWP of only 4, which is one 325th. (From an article in the Nikkan Jidosha Shimbun on Aug. 17, 2009)
-In Feb 2006, the Company announced a refrigerant for automotive air conditioning applications that will meet 2011 EU environmental standards for reducing use of global warming potential (GWP) substances. The testing has shown that the new technology can be used as a direct replacement for HFC-134a with minimal re-engineering of automotive systems. The Company said it is a more practical and cost-effective solution than CO2. The Company will provide additional details on its new technology in March at the Society of Automotive Engineers of Japan (JSAE) Automotive Air- Conditioning Conference in Tokyo. (From a press release by the company on Feb. 16, 2006)
Technological Alliance
-In May 2010, the Company and DuPont announced a manufacturing joint venture to produce a new refrigerant for use in automotive air conditioning systems. The new refrigerant has 99.7 percent lower global warming potential (GWP) than the current refrigerant. Under the agreement, DuPont and the Company will construct a manufacturing facility for the new refrigerant, HFO-1234yf. The product meets European Union regulatory requirements starting in 2011. The joint venture will begin supplying the refrigerant in the fourth quarter of 2011. (From a press release on May 20, 2010)-In April 2007, the Company jointly announced with DuPont that they agreed basically on a joint development of next-generation refrigerants for car air conditioning with low GWP (global-warming potential). To be compliant with the new regulations that require the use of low GWP refrigerants to be effective in 2011 in Europe, the two companies will share their development resources. The new refrigerant will use a fluorinated gas that allows technical compatibility with the existing system. The two companies will finalize concrete specifications by mid 2007 collaborating with the automotive industry. To promote the new refrigerant, the two companies will establish its superiority over CO2, another candidate for the next-generation refrigerant. The new refrigerant to be developed by the Company and DuPont can be used on a mechanism based on existing car air conditioners so that automakers can cut costs of replacement. (From an article in the Nikkan Jidosha Shimbun on April. 2, 2007)
Investment Activities
Capital Expenditure |
(In million USD) |
| FY ended Dec. 31, 2012 | FY ended Dec. 31, 2011 | FY ended Dec. 31, 2010 | |
| Overall | 884 | 790 | 644 |
| Transportation Systems | 93 | 48 | 89 |
Investment Outside USA
<Slovakia>-In 2011, the Company announced that it will open a new turbocharger manufacturing facility in Presov, Slovakia. The new plant will initially produce turbochargers for light vehicle and light commercial vehicle applications and is expected to be operational by 2012. In 2010, the Company was awarded more than 3 billion USD of new business and expects to introduce more than 100 new turbo applications in 2011. (From a press release on March 31, 2011)