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Honeywell says 'cautiously optimistic' on macro economy

Says each segment grew double digits organically in China in Q1. Says seeing pockets of recovery in areas like transportation systems. Says now reporting free cash flow without adjustments for cash, pension, etc. Sees Q1 Aero defense sales as low point for 2014. Says seeing healthy demand for air transport deliveries in commercial OE. Says advanced materials pricing headwinds are expected to moderate in Q2 and back half of the year. Comments made on the Q1 earnings conference call.