Honeywell 2008 Annual Report Download - page 42

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Business and general aviation aftermarket sales increased by 16 percent in 2007. The was primarily due to
increased revenue under maintenance service agreements and higher sales of spare parts.
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Defense and space sales increased by 8 percent in 2007. The increase was primarily due to higher sales of
surface systems, a 2 percent positive impact of the acquisition of Dimensions International and an increase
in space sales, including engineering activities relating to the Orion (CEV) program.
Aerospace segment profit increased by 16 percent in 2007 compared to 2006 due primarily to sales volume
growth, increased prices and productivity, partially offset by inflation.
2009 Areas of Focus
Aerospace's primary areas of focus for 2009 include:
• Focus on cost structure initiatives to maintain profitability in the face of challenging conditions in the
aerospace industry, such as lower flight hours and order deferrals and cancellations;
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Aligning inventory, production and research and development with customer demand and production
schedules;
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Pursuit of new defense and space platforms and growth opportunities;
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Continuing to design equipment that enhances the safety, performance and durability of aerospace and
defense equipment, while reducing weight and operating costs; and
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Delivering world-class customer service and achieving cycle and lead time reduction to improve
responsiveness to customer demand.
Automation and Control Solutions (ACS)
Overview
ACS provides innovative solutions that make homes, buildings, industrial sites and infrastructure more
efficient, safe and comfortable. Our ACS products and services include controls for heating, cooling, indoor air
quality, ventilation, humidification, lighting and home automation; advanced software applications for home/
building control and optimization; sensors, switches, control systems and instruments for measuring pressure, air
flow, temperature and electrical current; security, fire and gas detection; personal protection equipment; access
control; video surveillance; remote patient monitoring systems; products for automatic identification and data
collection, installation, maintenance and upgrades of systems that keep buildings safe, comfortable and
productive; and automation and control solutions for industrial plants, including advanced software and
automation systems that integrate, control and monitor complex processes in many types of industrial settings.
Economic and Other Factors
ACS's operating results are principally driven by:
• The growth of global commercial construction (including retrofits and upgrades);
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Demand for residential security and environmental control retrofits and upgrades;
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Demand for energy efficient products and solutions;
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Industrial production;
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Government and public sector spending;
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U.S. and European economic conditions;
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Economic growth rates in developed (U.S. and Europe) and emerging markets;
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The strength of capital and operating spending on process (including petrochemical and refining) and
building automation; and
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