David CoteThanks, Elena. Good morning, everyone. We had a strong finish to 2010, capping just a great year for Honeywell. Our result this year reinforce that our strategy is working, having great positions with the industries, the power One Honeywell, our consistent focus on improving every year in each of our five initiatives. It really does make a difference. I'm extremely proud of this team, delivering through the worst recession 80 years and now delivering in the recovery with record segment margins and free cash flow. We've demonstrated we are a stronger and smarter company with a very good start to achieving the five-year targets we outlined last February. Sales in the quarter were $9 billion, up 12% reported and 10% organic, with continued growth in new products, geographic expansion and strong momentum across the portfolio. While we've seen the biggest improvement in our early cyclical businesses that includes Turbo, which added approximately $3 billion of additional platform wins last year, our longer-cycle businesses are really kicking in. Process Solutions increased backlog 26% last year, and had double-digit organic growth in the quarter. Aerospace's commercial aftermarket saw spares orders increased 25%, significantly outpacing flight hours. And we generated pro forma earnings of $0.87 a share ahead of guidance. Segment margin rate expanded 50 basis points in the year even as we covered the reinstatement of some labor-related costs. We're focused on controlling our fixed cost with OEF organization efficiency, which concentrates on having the best people organized the right way and motivated, while also decreasing every year our OEF cost as a percentage of sales. It's a simple but effective strategy of increasing sales, while controlling fixed costs. It works and our key process initiatives are enablers in effect, accelerated. Our growth continues ahead of our markets because of the seed planting we've done for new products and services in new geographies, while always staying focused on doing a great job for the customer everyday.
Our investments and focus on all the emerging regions are really paying off, with a number of impressive customer wins in 2010. We've done very well in China as evidenced by the sizable wins of the backlog we're building in the region, including COMAC selection to provide four systems on the C919 commercial aircraft, and that yields over $11 billion in a lifetime value.Our successes in China will further enable accelerated sales growth in the region. UOP's recent Petrobras award is another great example of our emerging region growth. Petrobras selected UOP technology to produce high-quality diesel fuel from Brazilian national crude oils at two new refineries and also selected UOP to be the front-end engineering design or feed contractor, strengthening our capabilities globally. Our emerging region opportunity is huge, and we'll continue to resource it. The seed planting we've done there will continue to accelerate our growth profile, and we now have over 44,000 employees in emerging regions. We've also been selected for a number of new and derivative high-value commercial aircraft platforms. Customers continue to select Honeywell over a field of avionic competitors, citing the company's technology and product differentiation as the key deciding factor. In 2010, we won 50% of the business avionics contracts we pursued, making Honeywell the clear share winner. That competitive spirit is evident across all our businesses. I just spent three days with our top 300 leaders from around the world, where we concentrated almost exclusively on building on our strength this year, 2012 and beyond. There is a lot of momentum coming out of 2010 with positive order rates across the entire company. The seed planting we have been doing for the past nine years has clearly been paying off, and we believe we're still in the beginning stages of seeing the benefits.
Our key process initiatives, emerging region expansion, our disciplined acquisitions process and new products and services are all feeds that we have planted and continued to plant improve our growth productivity and cash flow. We have the right leadership team in place to deliver even better results. And I've asked all our business leaders to remain flexible because you never know what can happen economically in times like these. But to also aim high. The great positions we have in good industries and continued improvement we're seeing in the global economy, we're confident in our outlook for higher revenues, segment margin expansion, strong cash flow and 20% plus earnings growth in 2011.And today, I'm also pleased to have the opportunity to tell you we've entered into an agreement to sell the CPG business to Rank Group, a New Zealand-based private investment company with a track record of investing and building upon established franchises like CPG. This is a good outcome for both Honeywell and CPG, as we've found a buyer that recognizes the value of CPG and is intent on further developing the already strong consumer car care platforms in this space. Dave will take you through more details in a moment, but we think the smart deployment of CPG's sales proceeds into repositioning, share buyback and pension contributions will deliver terrific long-term value to our customers and share owners. Read the rest of this transcript for free on seekingalpha.com