Honeywell International Inc. Verizon Communications Inc
Performance 2006 Annual Report Financial Highlights (Dollars and Shares in Millions, Except Per Share Amounts) 2006 2005 2004 Sales· · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · $31,367 $ 27,652 $ 25,593 Sales Net Income· · · · · · · · · · · · · · · · · · · · · · · · · · · · $ 2,083 $ 1,638 $ 1,246 11% CAGR Diluted Earnings Per Common Share· · · · · · $ 2.52 $ 1.92 $ 1.45 $31.4 $27.7 Cash Dividends Per Common Share · · · · · · · $0.9075 $ 0.825 $ 0.75 $25.6 $23.1 Book Value Per Common Share · · · · · · · · · · $ 12.13 $ 12.98 $ 12.68 Total Assets · · · · · · · · · · · · · · · · · · · · · · · · · · · $30,941 $ 31,633 $ 30,570 Cash Flows from Operating Activities · · · · · · $ 3,211 $ 2,442 $ 2,253 Common Shares Outstanding at Year-End · · 801 829 850 2003 2004 2005 2006 Employees at Year-End· · · · · · · · · · · · · · · · · · 118,000 116,000 109,000 (in U.S.$ Billions) Sales by Profits by EPS Business Segment Business Segment 19% CAGR (percent)) (percent) $2.52 Automation and Automation and Control Solutions 35% Control Solutions 29% $1.92 Aerospace 35% Aerospace 44% $1.50 $1.45 2003 2004 2005 2006 Specialty Materials 15% Transportation 14% Transportation Systems Free Cash Flow (1) Systems 15% Specialty Materials 13% 17% CAGR $2.5 $1.8 $1.6 •Great positions in good industries with technologies aligned with $1.5 global mega-trends that matter to customers. •Consistent and sustainable financial performance in sales, margin expansion, earnings per share and free cash flow. •Disciplined and balanced cash deployment that returned more than $2.6 2003 2004 2005 2006 billion to shareowners in 2006 through dividends and share repurchases. •Growth initiatives and common operational processes have improved (in U.S.$ Billions) quality, delivery, value and technology for customers, while (1) We define free cash flow as cash provided strengthening our financial performance.
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