Honeywell 2015 Annual Report Download - page 9

Item 1A. Risk Factors
Cautionary Statement about Forward-Looking Statements
We describe many of the trends and other factors that drive our business and future results in Item 7. Management
’ s
Discussion and Analysis of Financial Condition, Results of Operations and in other parts of this report (including this Item
1A). Such discussions contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act
of 1934.
Forward-looking statements are those that address activities, events or developments that management intends,
expects, projects, believes or anticipates will or may occur in the future. They are based on management ’ s assumptions and
assessments in light of past experience and trends, current economic and industry conditions, expected future
developments and other relevant factors. They are not guarantees of future performance, and actual results, developments
and business decisions may differ significantly from those envisaged by our forward-looking statements. We do not
undertake to update or revise any of our forward-looking statements. Our forward-looking statements are also subject to
risks and uncertainties that can affect our performance in both the near-and long-term. These forward-looking statements
should be considered in light of the information included in this Form 10-K, including, in particular, the factors discussed
below. These factors may be revised or supplemented in subsequent reports on Forms 10-Q and 8-K.
Risk Factors
Our business, operating results, cash flows and financial condition are subject to the principal risks and uncertainties
set forth below, any one of which could cause our actual results to vary materially from recent results or from our anticipated
future results.
Macroeconomic and Industry Risks
Industry and economic conditions may adversely affect the markets and operating conditions of our customers,
which in turn can affect demand for our products and services and our results of operations.
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•
Aerospace—Operating results of Aerospace are directly tied to cyclical industry and economic conditions, as well as
changes in customer buying patterns of aftermarket parts, supplier stability, factory transitions and capacity
constraints. The operating results of our Commercial Original Equipment and Commercial Aftermarket business units
may be adversely affected by downturns in the global demand for air travel which impacts new aircraft production or
the delay or cancellation of new aircraft orders, delays in launch schedules for new aircraft, the retirement of aircraft
and global flying hours, which impact business and general aviation aircraft utilization rates. Operating results in our
Defense and Space Systems business unit may be affected by the mix of U.S. and foreign government appropriations
for defense and space programs. Operating results in our Transportation Systems business unit may be affected by
the level of production and demand for automobiles and trucks equipped with turbochargers, regulatory changes
regarding automobile and truck emissions and fuel economy, consumer demand and spending for automotive
aftermarket products and delays in launch schedules for new automobile and truck platforms.
•
ACS—Operating results may be adversely impacted by downturns in the level of global residential and commercial
construction (including retrofits and upgrades), capital spending and operating expenditures on building and process
automation, industrial plant capacity utilization and expansion, and inventory levels in distribution channels.
•
PMT—Operating results may be adversely impacted by downturns in the capacity utilization for chemical, industrial,
refining, petrochemical and semiconductor plants, our customers
’ availability of capital for refinery construction and
expansion, raw material demand and supply volatility, and our ability to maximize our facilities
’ production capacity and
minimize downtime. In particular, the volatility in oil and natural gas prices have and will continue to impact our
customers ’ operating levels and capital spending and thus demand for our products and