Honeywell International Inc. (HON) has inaugurated a full-service office in Baghdad, thus expanding its business in Iraq. The company’s office in Baghdad will be providing technical applications like process automation equipment, to the oil and gas industry of the country.
Honeywell’s initiative provides opportunity to local individuals, including engineers, to join the company’s Junior Engineer Talent Programme. The programme is designed to provide extensive training on Honeywell solutions and provide project management expertise globally. The company’s experienced and specialized personnel in process automation and oil and gas and refining industries are associated with the training programme.
The company also plans to build offices in southern and northern Iraq, as it is being actively associated with the reconstruction and development of Iraq. Honeywell initiated its operation in Iraq through its association with the US Department of Defense Task Force for Business and Stability Operations and local support and guidance of the Iraqi National Investment.
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Honeywell is working to form a local customer base by sending invitations to engineers, supervisors, operators and managers in the region to visit the Baghdad headquarters, where they can see the company’s vast portfolio of technology, from industrial automation to security systems, specialty chemicals and aviation technology. Apart from oil and gas industry, the company also serves education, commercial and residential facilities, aerospace companies and automotive manufacturers.
Honeywell’s attractive collection of businesses has the potential to earn consistently above-average returns. The company’s focus on working capital management, free cash flow generation and balance sheet strength remain positive attributes in the prevailing weak environment. Proactive restructuring initiatives have positioned the company to navigate better than many of its peers, but we have yet to see signs of stabilization in a number of its major end-markets.
The company continues to invest in big process initiatives as well as other activities such as Honeywell Operating System (HOS), Velocity Product Development and Functional Transformation, which continues to be huge enablers of growth and productivity. With 80% of its manufacturing cost base now within HOS deployment, the company expects to see significant acceleration in the current year.
The company remains cautious on the timing and the continued pace of the economic recovery. Honeywell will continue to be disciplined in cost controls and exceedingly careful about adding to infrastructure. This is expected to assist the company with continued strong volume leverage in the second half of the year.
Honeywell International Inc. is a diversified technology and manufacturing company, serving customers worldwide with aerospace products and services, control, sensing and security technologies for buildings, homes and industry, turbochargers, automotive products, specialty chemicals, electronic and advanced materials, process technology for refining and petrochemicals and energy efficient products and solutions for homes, business and transportation. Major competitors of Honeywell are BorgWarner Inc. (BWA), Johnson Controls Inc. (JCI) and United Technologies Corp. (UTX).
We currently have a Neutral recommendation on Honeywell International Inc., with a Zacks rank of #3 (short-term Hold recommendation).
Honeywell’s initiative provides opportunity to local individuals, including engineers, to join the company’s Junior Engineer Talent Programme. The programme is designed to provide extensive training on Honeywell solutions and provide project management expertise globally. The company’s experienced and specialized personnel in process automation and oil and gas and refining industries are associated with the training programme.
The company also plans to build offices in southern and northern Iraq, as it is being actively associated with the reconstruction and development of Iraq. Honeywell initiated its operation in Iraq through its association with the US Department of Defense Task Force for Business and Stability Operations and local support and guidance of the Iraqi National Investment.
Commission
Honeywell is working to form a local customer base by sending invitations to engineers, supervisors, operators and managers in the region to visit the Baghdad headquarters, where they can see the company’s vast portfolio of technology, from industrial automation to security systems, specialty chemicals and aviation technology. Apart from oil and gas industry, the company also serves education, commercial and residential facilities, aerospace companies and automotive manufacturers.
Honeywell’s attractive collection of businesses has the potential to earn consistently above-average returns. The company’s focus on working capital management, free cash flow generation and balance sheet strength remain positive attributes in the prevailing weak environment. Proactive restructuring initiatives have positioned the company to navigate better than many of its peers, but we have yet to see signs of stabilization in a number of its major end-markets.
The company continues to invest in big process initiatives as well as other activities such as Honeywell Operating System (HOS), Velocity Product Development and Functional Transformation, which continues to be huge enablers of growth and productivity. With 80% of its manufacturing cost base now within HOS deployment, the company expects to see significant acceleration in the current year.
The company remains cautious on the timing and the continued pace of the economic recovery. Honeywell will continue to be disciplined in cost controls and exceedingly careful about adding to infrastructure. This is expected to assist the company with continued strong volume leverage in the second half of the year.
Honeywell International Inc. is a diversified technology and manufacturing company, serving customers worldwide with aerospace products and services, control, sensing and security technologies for buildings, homes and industry, turbochargers, automotive products, specialty chemicals, electronic and advanced materials, process technology for refining and petrochemicals and energy efficient products and solutions for homes, business and transportation. Major competitors of Honeywell are BorgWarner Inc. (BWA), Johnson Controls Inc. (JCI) and United Technologies Corp. (UTX).
We currently have a Neutral recommendation on Honeywell International Inc., with a Zacks rank of #3 (short-term Hold recommendation).
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