Honeywell 2013 Annual Report Download - page 52

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Performance Materials and Technologies (PMT)
Overview
Performance Materials and Technologies develops and manufactures high-purity, high-quality and
high-performance chemicals and materials for applications in the refining, petrochemical, automotive,
healthcare, agricultural, packaging, refrigeration, appliance, housing, semiconductor, wax and
adhesives segments. Performance Materials and Technologies includes UOP, which provides process
technology, products, including catalysts and adsorbents, and services for the petroleum refining, gas
processing, petrochemical, renewable energy and other industries. Performance Materials and
Technologies also includes Advanced Materials, which provides products including fluorocarbons,
hydrofluoroolefins, caprolactam, resins, ammonium sulfate fertilizer, phenol, specialty films, waxes,
additives, advanced fibers, customized research chemicals and intermediates, electronic materials and
chemicals, catalysts and adsorbents.
Economic and Other Factors
Performance Materials and Technologies operating results are principally impacted by:
•Level and timing of capital spending and capacity and utilization rates in refining and
petrochemical end markets;
•Pricing volatility and industry supply conditions for raw materials such as cumene, fluorspar,
R240, natural gas, perchloroethylene, sulfur and ethylene;
•Impact of environmental and energy efficiency regulations;
•Global supply conditions and demand for non-ozone depleting, low global warming refrigerants
and blowing agents;
•Global supply conditions and demand for caprolactam, nylon resin and ammonium sulfate;
•Condition of the U.S. residential housing and non-residential industries and automotive demand;
•Extent of change in order rates from global semiconductor customers; and
•Demand for new products including renewable energy and biofuels, low global warming
products for insulation and refrigeration, additives and enhanced nylon resin.
Performance Materials and Technologies
2013 2012 Change 2011 Change
Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,764 $6,184 9% $5,659 9%
Cost of products and services sold . . . . . . . . . 4,933 4,525 4,144
Selling, general and administrative
expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 485 433 416
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 72 57
Segment profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,271 $1,154 10% $1,042 11%
Factors Contributing to Year-Over-Year Change Sales
Segment
Profit Sales
Segment
Profit
2013 vs. 2012 2012 vs. 2011
Organic growth/ Operational segment profit . . . . . . . . . . . . . 1% 3% 4% 9%
Foreign exchange . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0% 0% (1)% (1)%
Acquisitions and divestitures, net . . . . . . . . . . . . . . . . . . . . . . . 8% 7% 6% 3%
Total % Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9% 10% 9% 11%
40