Honeywell International (NYSE: HON) is an industrial conglomerate that makes airplane controls and engines, turbo chargers for car engines, industrial automation and controls systems and heating and air conditioning systems. Honeywell's $27.5 billion revenue^[1] places it amongst the largest companies in the world. Sales in the US constitute 61% of revenue, but Honeywell's international business has been growing rapidly. In the first quarter of 2008, more than two-thirds of Honeywell's 11% revenue growth came from outside the US. Sales in its heating and air conditioning division saw a jump of 20% in the Middle East and nearly 50% in India and China in 2007.^[2] .

The rising price of oil has affected many of Honeywell's clients in the transportation industry. Auto-makers such as Ford and GM have been forced to close some of their plants, lowering their demand for Honeywell's products. ^[3] Meanwhile, struggles in the U.S. Housing Market related to the subprime lending crisis have hurt demand in the construction industry.^[4] Demand for new heating and air conditioning systems depends upon construction levels, leaving Honeywell exposed to the downturn. However, sales by the division, fueled by increased business in Asia, had an organic growth of 3% in the first quarter of 2008.^[5]

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