Honeywell 3Q15 Earnings Call Notes

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Honeywell International’s (HON) CEO Dave Cote on Q3 2015

Markets seem to think there is a chance of recession here, but we don’t think so because we’ve never really had a recovery

“At least from my perspective, it feels like markets really think there is a chance of a recession here. And I guess while there is always the chance if there were some un-forward terrorist events somewhere or something drastic like that, I really don’t see that. This feels a lot different than it did in 2001 or 2008 to me, just because after a great recession we’ve never really had a recovery. 2010 was the only real recovery year that we had. After that it’s really been the slow growth environment and I think that’s kind of what we can expect over the next 2 or 3 years in the just way we ought to think about things, so I don’t see boom coming but by the same token I don’t see a crash coming.”

*Analyst comment: I went back and read the transcripts from 2008 and everybody held on until they couldn’t anymore*

“I guess I went back and I read all the transcripts from 2008 and everybody held on, held on, and held on and some of the similar comments then all of a sudden it fell off and I just — you have to — in our job at least you have to start scenario analysis planning here and it’s feeling a little sloppy, that’s all. I don’t disagree with your assessment.”

The debt position is very different today

“I can understand the transcripts but if you look at like debt position of the say just the American consumer back then versus today, very different, bank capability, bank reserve, they’re very different than what we’re dealing with today.”