Honeywell 2006 Annual Report Download - page 35
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administrative functions and improve business operations through investments in systems and process improvements; and
• Managing Corporate costs, including costs incurred for asbestos and environmental matters, pension and other post-
retirement expenses and our tax expense.
Review of Business Segments
2006 2005 2004
(Dollars in millions)
Net Sales
Aerospace $ 11,124 $ 10,496 $ 9,740
Automation and Control Solutions 11,020 9,416 8,031
Specialty Materials 4,631 3,234 3,497
Transportation Systems 4,592 4,505 4,323
Corporate — 1 2
$ 31,367 $ 27,652 $ 25,593
Segment Profit
Aerospace $ 1,892 $ 1,676 $ 1,422
Automation and Control Solutions 1,223 1,065 894
Specialty Materials 568 257 184
Transportation Systems 574 557 575
Corporate (177) (173) (158)
$ 4,080 $ 3,382 $ 2,917
A reconciliation of segment profit to income from continuing operations before taxes follows:
2006 2005 2004
(Dollars in millions)
Segment profit $ 4,080 $ 3,382 $ 2,917
Other income (expense) 111 231 429
Interest and other financial charges (374) (356) (331)
Stock option expense(1) (77) — —
Pension and other postretirement benefits (expense)(1) (459) (561) (628)
Repositioning and other charges(1) (483) (400) (764)
Income from continuing operations before taxes $ 2,798 $ 2,296 $ 1,623
(1) Amounts included in cost of products and services sold and selling, general and administrative expenses.
Aerospace
Overview
Aerospace is a leading global supplier of aircraft engines, avionics, and related products and services for aircraft manufacturers,
airlines, aircraft operators, military services, and defense and space contractors. Our Aerospace products and services include auxiliary
power units, propulsion engines, environmental control systems, engine controls, flight safety, communications, navigation, radar and
surveillance systems, aircraft lighting, management and technical services, advanced systems and instruments, aircraft wheels and
brakes and repair and overhaul services. Aerospace sells its products to original equipment (OE) manufacturers in the air transport,
regional, business and general aviation aircraft segments, and provides spare parts and repair and maintenance services for the
aftermarket (principally to aircraft operators). The United States Government is also a major customer for our defense and space
products.
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