"Building on our strong track record over the past decade, Honeywell continues to make great strides in 2012." Mr. David Cote, Chairman and Chief Executive Officer of Honeywell. "We achieved good sales growth, earned unprecedented margins and double-digit earnings per share growth, while consistently generating strong free cash flow. More importantly, we have achieved these results while making continuous investments for future growth.
"Building on our strong track record over the past decade, Honeywell continues to make great strides in 2012." Mr. David Cote, Chairman and Chief Executive Officer of Honeywell. "We achieved good sales growth, earned unprecedented margins and double-digit earnings per share growth, while consistently generating strong free cash flow. More importantly, we have achieved these results while making continuous investments for future growth. Over the past decade, we have worked hard to transform Honeywell's growth model, and the results are outstanding today - a portfolio of businesses with differentiated competitive advantages, balanced development of long - and short-cycle businesses, successful new product development and technology pipeline, regional market expansion, and continued focus on the key initiatives that drive our success. While we expect the economy to remain slow in 2013, we will remain flexible and maintain our focus on growth, efficiency, competitiveness, driving sales and improving margins. Those important ways to improve our productivity, including Honeywell Operating Systems, functional transformation, organizational efficiency and rapid product Development ™, will continue to be differentiating strengths for the company and will contribute to strong earnings growth and cash flow in 2013."
Acquisition of E-Tenma
Honeywell also announced that it has entered into a definitive agreement to acquire E-Tenma Corporation (NYSE: IN) for $10 per share, representing approximately $600 million in total net cash. Etenma is a leading supplier of mobile terminals, RFID and barcode, label and receipt printers used in warehousing, supply chain, field service and manufacturing environments. The acquisition will increase the scale of Honeywell's rugged mobile computing devices business and expand the product line of its automation and control Systems Group Scanning and mobile Technologies business.
Roger Fradin, President and Chief Executive Officer of Honeywell Automation Control Systems, said: "Honeywell Scanning & Mobility was built through the successful acquisitions of Welling, Metrojet and EMS in the United States, and the addition of Etenma is a natural extension of our scanning & mobility business. It will strengthen our core scanning and mobile computing businesses and open up new opportunities in areas such as radio frequency identification, voice recognition, bar codes and receipt printing. This acquisition will enrich our product line and strengthen our intellectual property system, allowing us to maintain long-term technological leadership in the promising field of Automatic Identification and Data Acquisition (AIDC). Etenma has a wide range of technical capabilities and customer coverage. We hope to integrate these advantages into the existing company structure in the future and consolidate our leading position in the AIDC market." Our world-class M&A integration process will once again deliver shareholder value."
Upon completion of the acquisition, Etenma will become part of Honeywell's Scanning and Mobility Technologies (HSM) division under Honeywell Automation and Control Systems. With approximately 2,200 employees in 65 locations around the world, Etenma serves virtually every region of the world. The company is headquartered in Everett, Washington.
