Honeywell International Inc. (HON) will set up three joint ventures in China to supply components for the new passenger jet plane program.
The company is likely to collaborate with Hunan Boyun New Materials Co. to make wheels and brakes; with AVIC Flight Automatic Research Institute to make flight controls; and with AVIC Harbin Dong’an Engine Group Corp. to make auxilary power units.
Honeywell is a leading supplier of electronics, consumable hardware, engine controls, environmental controls, landing systems, power systems, propulsion engines, aerospace services and space products and systems for the aerospace industry, including commercial and regional airlines, air cargo carriers, as well as Original Equipment Manufacturers (OEMs) of commercial, regional, military aircraft and spacecraft.
Honeywell’s attractive collection of businesses has the potential to earn consistent above-average returns. The company’s focus on working capital management, free cash flow generation and balance sheet strength remain positive attributes in the current weak environment.
The company is a global leader in refrigerants, aerosols and foam-insulation blowing agents used to replace ozone-depleting Chlorofluorocarbon and Hydro chlorofluorocarbons. Those same products also improve the energy efficiency of homes, appliances and commercial refrigeration systems.
The company’s proactive restructuring initiatives have positioned it 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.
At Automation and Control Systems, the largest segment by revenue, industrial customers are delaying both capital and operating spending across a number of businesses, driven by weakening demand.
Honeywell International Inc. is a diversified technology and manufacturing company, serving customers worldwide. The primary competitors include Johnson Controls Inc (JCI) and United Technologies Corporation (UTX).
We currently have a Neutral recommendation on Honeywell.
HONEYWELL INTL (HON): Free Stock Analysis Report
JOHNSON CONTROL (JCI): Free Stock Analysis Report
UTD TECHS CORP (UTX): Free Stock Analysis Report
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