Honeywell International Inc. Business Report FY ended Dec. 2015

Business Highlights

Business Overview

Transportation Systems
-FY ended Dec. 31, 2015, Transportation Systems sales decreased by 19% (increased 3% organic) primarily due to the unfavorable impact from foreign currency translation and the Friction Materials divestiture, partially offset by continued growth from new platform launches, and higher global turbo gas penetration.

Electric Boosting
-In the Frankfurt Motor show (IAA) in September 2015, the Company has unveiled its newest electric boosting solutions. The Company is at the stage of active simulation and prototyping. The solutions introduced are;

  • E-Charger: Complements the traditional turbo architecture by updating the turbine side of the turbo with an electric motor to drive the compressor wheel to feed air to the engine quickly.
  • E-Turbo Compounding: This similarly complimentary configuration is the reverse of an E-Charger, connecting a turbine wheel fed by exhaust energy to an electric generator to create electricity for some other purpose in the vehicle.
  • Full electric turbo: One integrated unit which both uses and makes electrical energy to drive itself or other vehicle accessories. On a hybrid application, it can put energy back into the crankshaft to make the system more efficient.
  • Electric air compressor for fuel cells: An electric pump which pushes air through a Hydrogen fuel cell.

(From a press release on September 15, 2015)

Contracts

<India>
-In April 2015, the Company is providing its variable-geometry, diesel turbocharger technology to Volkswagen for its new 1.5L TDI diesel engine designed and developed in India. The 1.5L TDI diesel engine powers the Volkswagen "Polo", "Vento" and the Skoda "Rapid". The Company's variable nozzle turbine (VNT) technology is 30% more space efficient. Downsized diesel turbocharged vehicles deliver up to 40% better fuel-economy and emissions than the larger naturally-aspirated engines with similar power outputs which they replace. (From a press release on April 2, 2015)

<China>
-In August 2015, the Company announced that it is supplying advanced gasoline turbo technology for Citroen's new "C4L" sedan, which launched this month in China. The downsized 1.2-liter 3-cylinder engine package delivers the power (110kW) and torque of most 2.0-litre 4-cylinder naturally aspirated engines, with the additional fuel economy benefits of achieving 5.4L/100km. This engine platform is available on various PSA Group models (Peugeot "208", "308", Citroen "C3", "C4", "DS3", "DS4") including the Peugeot "308S" and "408", which were introduced in China in April. (From a press release on August 28, 2015)

-In April 2015, the Company announced that its turbocharger technology is used by more than 50 vehicles on display at Auto Shanghai 2015. These include new vehicles from Chery, the "Tiggo 5" and the "Arrizo 7", as well as the Peugeot "408". The Company is also available on larger vehicles and several new SUVs including the BAC Brilliance "V3", the JAC "S5" and SAIC's "MG GS" SUV. (From a press release on April 22, 2015)

-Other major agreements
<2015>
Diesel-powered passenger vehicles

Region/Country Product Customer Model Engine
Europe Turbocharger BMW 1 Series, 2 Series, 3 Series, 4 Series,
5 Series
2.0L, I4
U.S. Turbocharger BMW X1 Series,
X3 Series
2.0L, I4
U.S. Turbocharger Chevrolet Colorado 2.8L, I4


Gasoline-powered passenger vehicles

Region/Country Product Customer Model Engine
U.S. Turbocharger Nissan
Infiniti "Q50" 3.0L, V6
Korea
Turbocharger Hyundai
Genesis "G90" 3.3L, V6
U.S. Turbocharger FCA Ram "1500" 3.0L
Europe Turbocharger Mercedes-Benz E-Class 2.0L, I4
U.S. Turbocharger Ford Mustang
2.3L, I4
U.S. Turbocharger BMW X6 M 4.4L, V8
U.S. Turbocharger Nissan
Frontier -


Hybrid passenger vehicles

Region/Country Product Customer Model Engine
Europe Turbocharger Audi Q7 e-tron 3.0L, V6 diesel

R&D Expenditure

(in million USD)
  FY ended Dec. 31, 2015 FY ended Dec. 31, 2014 FY ended Dec. 31, 2013
Overall 1,856 1,892 1,804
% of sales 4.8 4.7 4.6

R&D Structure

-The Company has research and development activities in the US, Europe, India and China.

Product Developments

TwoStage Variable Nozzle Turbine (VNT) turbocharger
-In the Frankfurt Motor show (IAA) in September 2015, the Company has unveiled its newest TwoStage Variable Nozzle Turbine (VNT) turbocharger system for diesel engines. The Company is using two different size VNT turbos in its most recent TwoStage system for the new BMW 4-cylinder diesel engine in the "125d", "X1 2.5d" and "225d". In this application, the smaller high-pressure turbo is mounted on top of the exhaust manifold and larger low-pressure turbo below it. The combination creates new levels of responsiveness at all speeds and helps the engine perform more efficiently to improve mileage and emission. (From a press release on September 15, 2015)

Low GWP (Global-Warming-Potential) refrigerant
-In January 2015, the Company announced that it has started full-scale commercial production of a low-global-warming-potential (GWP) material used as an aerosol propellant, insulating agent and refrigerant. The material, known by the industry designation HFO-1234ze and marketed by the Company under its Solstice line of low-global-warming materials, is being produced at the Honeywell Fluorine Products facility in Baton Rouge, Louisiana, USA. Honeywell's Solstice line of HFOs includes Solstice yf for automobile air conditioning. (From a press release on January 6, 2015)

-In June 2015, Honeywell Japan Inc. announced that its Solstice hydrofluoroolefin (HFO) air conditioning refrigerants are newly categorized as non-chlorofluorocarbon products and are not subject to the control of a new Japanese law regarding the use of chlorofluorocarbon (CFC). They will be able to use a non-CFC mark (given by Japan's Ministry of Economy, Trade and Industry) for the refrigerants. (From an article in the Nikkan Jidosha Shimbun on June 8, 2015)

Advanced thermal management material for semiconductor manufacturing applications
-Honeywell Japan Inc. has launched newly developed PTM6000 advanced thermal management material for semiconductor manufacturing applications. The Company will market it for onboard equipment highlighting its characteristic to improve reliability of high-performance semiconductor devices. PTM6000 is based on phase-change chemistry and advanced filler technology to improve performance of transferring and dissipating heat from semiconductor devices. PTM6000 was designed to be effective for achieving long-lasting thermal stability of high-power modules for automotive applications. (From an article in the Nikkan Jidosha Shimbun on October 28, 2015)

Capital Expenditure

(in million USD)
  FY ended Dec. 31, 2015 FY ended Dec. 31, 2014 FY ended Dec. 31, 2013
Overall 1,073 1,094 947
-Aerospace 314 315 310