Honeywell’s Automation and Control Solutions segment

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What does it do?

Honeywell’s Automation and Control Solutions segment develops products and solutions. They’re aimed at providing customers with the ability to capture more and better data. They capture the data at a faster rate across a wireless landscape. The products and solutions improve productivity, safety, and security. They drive better decision making. The products and solutions result in reduced costs.

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Key competitors

Honeywell (HON) is part of the Industrial Select Sector Index (XLI). It faces competition from General Electric (GE), Holmes, Bosch, Cherry, Eaton (ETN), Emerson (EMR), Johnson Controls (JCI), Omron, Schneider, Siemens, United Technologies (UTX), Hubbell Inc. (HUB.A), Mine Safety Appliances, Pelco, Phillips, Motorola Solutions (MSI), Chevron (CVX), GroupMac, and various others companies in this segment.

Financial performance

For 4Q14, the segment’s sales were up 6% on an organic basis. The sales were driven by better-than-expected performances in both ESS and BSD.

  • ESS (Energy, Safety, and Security) sales for the products businesses were up 7% year-over-year, or YoY, on an organic basis in the quarter. The sales were up 11% for the fiscal year. This was primarily driven by the new wins—like the US coastal service program and growing volumes in scanning and mobility. The segment also received benefits from Intermec. It expects that the pending acquisition of Datamax-O’Neil will compliment its existing portfolio in the attractive bar code printing space that it acquired with Intermec. The segment also saw new product introductions, more penetration in high growth regions, and higher residential sales.
  • BSD (Building Solutions and Distribution) sales grew by 4% YoY on an organic basis. The sales grew due to continued strength in the nation’s fire and security distribution businesses and acceleration in building solutions.

Overall, the segment had a good quarter. Its growth is expected to continue in the coming year.

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