Third Quarter 2011

Earnings Release

Forward Looking Statements

This report contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of fact, that address activities, events or developments that we or our management intend, expect, project, believe or anticipate will or may occur in the future are forward-looking statements. Forward-looking statements are based on managements 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 from those envisaged by our forward-looking statements. Our forward-looking statements are also subject to risks and uncertainties, which can affect our performance in both the near- and long-term. We identify the principal risks and uncertainties that affect our performance in our Form 10-K and other filings with the Securities and Exchange Commission.

3Q 2011 Earnings Release October 21, 2011

Overview
3Q Adds To Strong 2011 Momentum
$9.3B Sales, 14.7% Segment Margin, $1.10 EPS, $0.9B FCF* (103% Conversion)
8% Organic Sales Growth; Reflects Continued Good End Markets Overall $0.33 CPG And OPEB Gains Fully Deployed Benefit 2012 And Beyond

Growth Reflects Continued Seed Planting

New Products And Technologies Continue To Enhance Organic Growth
Emerging Regions Continue Strong ~20% Growth In Asia Key Process Initiatives Delivering Significant Benefits Across Portfolio

Confident In 2011 Outlook; 2012 Framework Taking Shape

Raising FY EPS** To $4.00 - 4.05, Up 33-35% Over 2010
Order Rates Positive Favorable Long-Cycle Mix Setting Up For Another Growth Year In 2012
*3Q 2011 FCF and FCF Conversion Shown Excludes $400M Cash Pension Contribution **Proforma, Excludes Any 4Q MTM Pension Adjustment

Strong Performance YTD, Confident In FY Outlook

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3Q 2011 Earnings Release October 21, 2011

3Q11 Operating Performance

$ Sales Segment Profit
Margin %

EPS

$9,298 $1,397
15.0%

14% Increase
8% Organic

$1.30

21% Increase
+80 bps Margin Expansion All Segments

BTL
Pension, OPEB Repositioning Other** ($50) ($212) ($0.05) ($0.19)

Ongoing Run-rate

No Repositioning Assumed

Continuing Ops @ 26.5%

$832

$1.06

Net Income
Before One-Time Items

$832

$1.06

39% Increase YoY***

***Variance Versus 3Q 2010 Reported Net Income and EPS

*$M, Except for Per Share Amounts; Share Count 787 million **Other includes Environmental, Asbestos, Stock Comp and Other Income

Operating Earnings Above High End Of Range

3Q 2011 Earnings Release October 21, 2011

3Q11 One-Time Gains And Deployment

$ EPS

Segment Profit
Margin %

($30)
(30 bps)

($0.03)

Deployment: Fund Employee HSAs

BTL
Pension, OPEB Repositioning Other** $106 ($298) ($20) $0.10 ($0.28) ($0.02)

Gain: OPEB Curtailment Deployment: Segment Repositioning Deployment: Proactive Env. Remedies

Continuing Ops @ 26.5%

Tax Benefit @ 23.2%

($177)
$30

($0.23)
$0.04

Tax Benefit, Offset 4Q Gain: Sale of CPG Tax Benefit Lives Through in 3Q

Discontinued Ops
Net Income
One-Time Items

$177
$30

$0.23
$0.04

*$M, Except for Per Share Amounts; Share Count 787 million **Other includes Incremental Environmental, Net of Gain on Sale of Non-Strategic Business

CPG And OPEB Gains Fully Offset

3Q 2011 Earnings Release October 21, 2011

3Q11 Reported Results

$ Sales Segment Profit
Margin %

EPS

$9,298 $1,367
14.7%

14% Increase
8% Organic

$1.27

18% Increase
+50 bps Margin Expansion All Segments

BTL
Pension, OPEB Repositioning Other** $56 ($298) ($232) $0.05 ($0.28) ($0.21)

One-time Gains Fully Utilized

Continuing Ops @ 26.5%

Tax Benefit @ 23.2%

$655
$30

$0.83
$0.04

Tax Benefit, Offset 4Q Gain on Sale of CPG 45% EPS Increase

Discontinued Ops
Net Income
Attributable to Honeywell

$177
$862

$0.23
$1.10

*$M, Except for Per Share Amounts; Share Count 787 million **Other includes Environmental, Asbestos, Gain on Sale of Non-Strategic Business, Stock Comp and Other Income

Another Terrific Quarter

3Q 2011 Earnings Release October 21, 2011

After Tax Gain Deployment

Gains Deployment
Consolidation of Small Manufacturing and Assembly Sites To Larger Emerging Region Facilities
Business Realignment, Centralized Sales Support

OPEB $0.10

Building Footprint Reduction

CPG $0.23

Elimination of Unprofitable Product Lines Fund Active Employee Medical Change/Health Spending Accounts Actions Deliver Over $50M Benefit In 2012 Book IRR >40%; Cash IRR >60%

Smart Gain Deployment Yields Long-Term Benefits

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3Q 2011 Earnings Release October 21, 2011

Repositioning Update
($M)
400

Repositioning Charges
1,200 1,000
300

Cumulative Savings*

Funded With Gains

800

Incremental ~$150M

200

600

400

100

200

0
2009 2010 2011E

2010

2011E

2012E

$0.7B Repositioning Since 2009

2011 Actions Funded With One-time Gains

Longer Payback Periods, High IRRs

Projects Providing Tailwinds In 2012 And Beyond Repositioning Aligned To Macro Trends (Business, Regional)
* Cumulative Savings on Repositioning Actions Since 2008

Positioning For 2012 And Beyond

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3Q 2011 Earnings Release October 21, 2011

Aerospace
Financial Highlights
($M)

Sales Segment Profit Margin

3Q10 $2,704

3Q11 $2,922

V 8%

Sales Up 8%
Up 7% Organic

- Commercial OE Up 25%, 22% Organic

458 17.0% 532 16% 18.2% +120 bps
Air Transport, BGA Shipments Strong

- Commercial Aftermarket Up 17%

Spares Up 28%, Mechanical and Avionics R&O Up 10%, Ahead of Utilization Rates

Business Highlights
+ New Commercial Wins and RMUs

- Defense and Space Down (4%)

Consistent with Planning

Segment Profit Up 16%

Margins Up 120 bps
+ Volume / Mix + Productivity, Net Of Inflation RD&E (140 bps y/y)

+ Commercial OE Shipments
+ Selectables / BFE Content + Commercial AM Strength Defense Program Ramp Downs

Commercial Recovery Driving Growth

9
3Q 2011 Earnings Release October 21, 2011

Automation And Control Solutions

Financial Highlights
($M)

Sales

3Q10 $3,474

3Q11 $3,948

V 14%

Sales Up 14%
Up 4% Organic M&A +6% F/X +4%

Segment Profit Margin

471 13.6%

544 13.8%

15% +20 bps

- Products Up 15%, 4% Organic

Industrial Continues Strong HLS, S&C

Organic Growth All Regions

Business Highlights
+ PPE Continues Strong

- Solutions Up 12%, 5% Organic

Emerging Regions Driving Growth HPS Acceleration

Segment Profit Up 15%

Margins Up 20 bps
+ Volume + Productivity Inflation Growth Investments

+ U.S./China/Asia Driving Growth

+ New Products, Improving Comml Retrofit Slowing Growth in Europe Residential Retrofits / Distributor Inventory

Continued Good Organic Growth

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3Q 2011 Earnings Release October 21, 2011

Transportation Systems
Financial Highlights
($M)

Sales Segment Profit Margin

3Q10 $786

3Q11 $960

V 22%

Sales Up 22%
Up 13% Organic

92 11.7%

121 12.6%

32% +90 bps

- Strong Growth In Turbochargers

New Platform Launches Flattening European Diesel Penetration Strong Growth Europe and Americas

Excludes sales and segment profit from discontinued operations (CPG)

- CPG Reported in Discontinued Ops

Business Highlights
+ Turbo Share Gains From New Launches

Segment Profit Up 32%

90 bps Margin Expansion
+ Volume + Productivity

+ Global OE Production
+ Improved Turbo Penetration Globally + Restructuring Benefits - China CV Continued Softness

Inflation

New Launches Driving Growth

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3Q 2011 Earnings Release October 21, 2011

Specialty Materials
Financial Highlights
($M)

Sales Segment Profit Margin

3Q10 $1,175

3Q11 $1,468

V 25%

Sales Up 25%, 18% Organic

- UOP Up 36%
Refining and Specialty Catalysts Growth Strong Service Activity with Petrobras

194 16.5%

254 17.3%

31% +80 bps

- Adv. Materials Up 20%, 10% Organic

Resins & Chemicals Phenol Acquisition, Asia Demand Remains Robust

Business Highlights
+ UOP Orders / Backlog Ramping

Fluorines Refrigerant Seasonal Slowing, Demand and Pricing Moderating Specialty Products NPI

+ Outperforming End Markets

+ Integrating Phenol Plant Acquisition + Solid Plant Performance Refrigerants Season Ramping Down

Segment Profit Up 31%

Margins Up 80 bps
+ + Price/Raws Spread Productivity Growth Investments Phenol Plant Acquisition

Another Strong Quarter Across The Board

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3Q 2011 Earnings Release October 21, 2011

4Q11 Preview
($B)

Sales $3.0 - 3.1

V% ~5 - 8%

What We Are Expecting

Commercial Strength Continues Modest Decline in Defense Short Cycle Products Growth Moderates Building, Process Solutions Accelerate

Aerospace

ACS

$4.1 - 4.2

~5 - 7%

Transportation $0.9 - 1.0

~7 - 11%

New Turbo Launches EU LV Production / Diesel Pen. Stable

Specialty

$1.4 - 1.5 ~21 - 26%

UOP Strength, Short Cycle Moderates ~10% M&A Impact (Phenol Plant)

4Q11: FY11:
13

Sales $9.4 - 9.6B $36.5 - 36.7B

EPS* $1.00 - 1.05 $4.00 - 4.05

3Q 2011 Earnings Release October 21, 2011

*Proforma, Excludes any 4Q MTM Adjustment; 4Q EPS Range Assumes ~27.5% Effective Tax Rate

Pension Update
Estimated 4Q 2011 MTM
($M)

Discount Rate

4.50% 4.75% 5.00% 5.25% 5.50%

-10% 4,008 3,495 2,995 2,499 2,037

Rate -5% 3,268 2,755 2,254 1,769 1,297

of Return 0% 5% 2,538 1,798 2,025 1,284 1,524 784 1,029 350 600 10

8% 1,374 860 360 -

2011 Assumptions: 5.25% Disc Rate and 8% Asset Return MTM Determined by 12/31/11 Actuals MTM Adjustment Recognizes Impact in Same Period Additional $250M Cash Contribution Planned 4Q

Estimated 2012 Ongoing Expense

($M)

Rate of Return -10% 147 158 167 175 181 -5% 100 111 120 128 135 0% 54 64 73 81 88 5% 7 17 26 34 41 8% (21) (11) (2) 6 13

Discount Rate

2011 Expense Expected to be ~$110M MTM Accounting Reduces Ongoing Expense Volatility - Enhances Operational Transparency Voluntary Prefunding Planned Amount TBD Based on Current Rates, Planning Ongoing Expense Flat in 2012

4.50% 4.75% 5.00% 5.25% 5.50%

Note: Assumes $1.65B contribution in 2011 and additional pre-funding in 2012

Pre-funding Opportunities Manageable

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3Q 2011 Earnings Release October 21, 2011

2012 Planning Framework

Headwinds TBD Tailwinds

Defense & Space

Industrial / Short Cycle

Commercial AM / OE Aero Launch Contributions

Fluorines Pricing

Non-Res Construction Emerging Markets

Aero R&D

Pricing

Refining / Petrochem / Mining ACS Long Cycle Turbo Launches

Eurozone Growth Rate

Commodities

Residential Retrofit

FX Repositioning Benefits

Good Visibility To 2012 Tailwinds

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3Q 2011 Earnings Release October 21, 2011

Summary
3Q Results Reflect Strong Execution and Positive Momentum
Continued Uptick In Commercial Aero Strong Operational Leverage and Earnings Growth

Order Rates Positive Favorable Long-cycle Mix

Short Cycle Growth Moderating, End Markets Good Overall Long-Cycle Growth Ramping UOP, ACS Solutions, Commercial Aero U.S., Emerging Regions Remain Strong; Eurozone Growth Slowing

2011 Strong Performance Continues, 2012 Planning Underway

2011: Raising EPS Outlook To $4.00-4.05 4th Consecutive Increase Getting Out Ahead Of Slower Growth Environment 2012: Good Visibility To Tailwinds, Disciplined Playbook

Setting Up For Another Growth Year In 2012

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3Q 2011 Earnings Release October 21, 2011

Reconciliation of non-GAAP Measures to GAAP Measures

Appendix

17

3Q 2011 Earnings Release October 21, 2011

Reconciliation of Segment Profit to Operating Income and Calculation of Segment Profit and Operating Income Margin
3Q10
$8,139 (6,170) (1,129) $840 36 215
(1)

($M )

3Q11
$9,298 (7,033) (1,303) $962 38 423 26 0 (82) $1,367 $962 $9,298 10.3% $1,367 $9,298 14.7%

Sales Cost of Products and Services Sold Selling, General and Administrative Expenses Operating Income Stock Based Compensation (1) Repositioning and Other OPEB (Income) Expense Segment Profit Operating Income Sales Operating Income Margin % Segment Profit Sales Segment Profit Margin %
(1, 2) (1) Pension Expense-ongoingmarket Expense-mark to (1)

50 0 18 $1,159 $840 $8,139 10.3% $1,159 $8,139 14.2%

(1 Included in co st o f pro ducts and services so ld and selling, general and administrative expenses ) (2) Includes repo sitio ning, asbesto s, enviro nmental expenses and equity inco me

18

3Q 2011 Earnings Release October 21, 2011

Reconciliation of Free Cash Flow to Cash Provided by Operating Activities, Excluding U.S. Pension Contributions and Calculation of Cash Flow Conversion

($M )

3Q10
$1,325 (166) $1,159 0 $1,159

3Q11
$661 (177) $484 400 $884

Cash Provided by Operating Activities Expenditures for Property, Plant and Equipment Free Cash Flow US Pension Cash Contributions Free Cash Flow, Excluding U.S. Pension Cash Contributions

Cash Provided by Operating Activities Net Income Attributable to Honeywell Operating Cash Flow Conversion % Free Cash Flow, Excluding U.S. Pension Cash Contributions Net Income Attributable to Honeywell Free Cash Flow Conversion %

$1,325 598 222% $1,159 598 194%

$661 862 77% $884 862 103%

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3Q 2011 Earnings Release October 21, 2011

Reconciliation of Net Income, Attributable to Honeywell and EPS to Net Income and EPS, Excluding Mark-to-Market Pension Expense

($M )

2010
$2,022 319 $2,341

Net Income Attributable to Honeywell Mark-to-Market Pension Adjustment, Net of Tax Net Income Attributable to Honeywell, Excluding Mark-to-Market Pension Adjustment

2010 (1)
EPS Mark-To-Market Pension Adjustment EPS, Excluding Mark-to-Market Pension Adjustment $2.59 0.41 $3.00

(1 EP S utilizes weighted average shares o utstanding and the effective tax rate fo r the perio d. M ark-to -M arket uses a blended tax rate o f 32.3%. )

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3Q 2011 Earnings Release October 21, 2011