Honeywell 2015 Annual Report Download - page 5

mobile computers and printers, bar code scanners and voice technologies; and installation, maintenance and upgrades of
systems that keep buildings safe, comfortable and productive.
Performance Materials and Technologies
PMT is a global leader in developing and manufacturing advanced materials, process technologies and automation
solutions. UOP provides process technology, products, including catalysts and adsorbents, equipment and consulting
services to efficiently produce gasoline, diesel, jet fuel, petrochemicals and renewable fuels for the petroleum refining, gas
processing, petrochemical, and other industries. Process Solutions is a pioneer in automation control, instrumentation,
services and advanced software for the oil and gas, refining, pulp and paper, industrial power generation, chemicals and
petrochemicals, biofuels, life sciences, and metals, minerals and mining industries. Advanced Materials manufactures a wide
variety of high-performance products, including fluorocarbons, hydrofluoroolefins, caprolactam, resins, ammonium sulfate
fertilizer, phenol, specialty films, waxes, additives, advanced fibers, customized research chemicals and intermediates, and
electronic materials and chemicals.
Competition
We are subject to competition in substantially all product and service areas. Some of our key competitors are:
Our businesses compete on a variety of factors, such as price, quality, reliability, delivery, customer service,
performance, applied technology, product innovation and product recognition. Brand identity, service to customers and
quality are important competitive factors for our products and services, and there is considerable price competition. Other
competitive factors include breadth of product line, research and development efforts and technical and managerial
capability. While our competitive position varies among our products and services, we believe we are a significant competitor
in each of our major product and service classes. Many of our competitors have substantial financial resources and
significant technological capabilities. In addition, some of our products compete with the captive component divisions of
OEMs.
Aerospace Sales
Our sales to aerospace customers were 39%, 39%, and 40% of our total sales in 2015, 2014 and 2013. Our sales to
commercial aerospace OEMs were 8%, 6%, and 7% of our total sales in 2015, 2014 and 2013. In addition, our sales to
commercial aftermarket customers of aerospace products and services were 12%, 11%, and 11% of our total sales in 2015,
2014 and 2013.
U.S. Government Sales
Sales to the U.S. Government (principally by Aerospace), acting through its various departments and agencies and
through prime contractors, amounted to $3,743 million, $3,693 million and $3,856 million in 2015, 2014 and 2013, which
included sales to the U.S. Department of Defense, as a prime contractor and subcontractor, of $2,680 million, $2,792 million
and $3,066 million in 2015, 2014 and 2013. U.S. defense spending decreased in 2015 compared to 2014. We do not expect
our overall operating results to be significantly affected by any proposed changes in 2016 federal defense spending due
principally to the varied mix of the government programs which impact us (OEMs
’ production, engineering development
programs, aftermarket spares and repairs and overhaul programs), increases in direct foreign defense and space market
sales, as well as our diversified commercial businesses.
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Aerospace: Borg-Warner (automotive), Garmin, General Electric, Rockwell Collins, Thales and United Technologies
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ACS: 3M, Johnson Controls, Schneider, Siemens and Zebra-Motorola
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PMT: Albemarle, BASF, Dow, Dupont, Emerson and Sinopec