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Honeywell International, Inc. (HON)

- NYSE
  • Mon, May 18, 12:59 PM
    • Honeywell (HON +0.1%) CEO Dave Cote tells Bloomberg he is open to considering acquisitions in water and health care, both potential new business lines, while looking mostly in industries similar to where HON operates now, such as energy and automation besides aerospace, chemicals and climate controls.
    • Cote’s willingness to explore fields new to HON shows his pursuit of a five-year goal set in 2014 to spend $10B on takeovers, about double the tally in the prior half-decade, as the company sits on a record $9.1B cash pile and last made a $1B-plus purchase in 2010.
    • Cote says he does not prefer to use excess cash toward share buybacks, believing 80% of companies do so at the wrong time.
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  • Mon, May 11, 8:07 AM
    • With the shedding of its finance arm last month, GE has indicated that it can deliver 10% earnings growth annually from its industrial side in the next four years, but Honeywell (NYSE:HON) has been delivering on 10%-plus profit growth ever since it remade itself more than a decade ago.
    • Honeywell shares could rise by about 20% in the next year and close to 50% in the longer-term if it continues to meet its forecasts and improve its margins, writes Barron's Sandra Ward.
    • HON shares are trading at around 15x the company's 2016 earnings estimates, well below the average of 17x assigned to multi-industrial companies.
    • In contrast to GE, which saw its shares lose 33% of their value in the past 13 years as its strategy meandered and its massive financial operations foundered, Honeywell has risen 200%. Sales have nearly doubled to $40B, and its market value has mushroomed to $80B from $20B.
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  • Fri, May 8, 6:28 PM
    • GE is awarded a $2B five-year contract to supply helicopter engines to Taiwan's government and support a number of U.S. military services, the Defense Department reports.
    • The contract covers work on GE's T700 701D and T700 401C engines used to power Black Hawk helicopters built by Sikorsky Aircraft (NYSE:UTX).
    • The DoD also says Honeywell (NYSE:HON), Siemens (OTCPK:SIEGY) and others have been awarded a $1.5B U.S. Army contract for the design, construction and operation of energy savings projects.
    | 10 Comments
  • Tue, Apr. 28, 9:21 AM
    • Honeywell's (NYSE:HON) Performance Materials and Technologies division has opened a new manufacturing facility in China to produce catalysts used to make components for plastics production.
    • The catalysts will covert propane to propylene as demand for the building block grows and traditional sources for the product shrink.
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  • Mon, Apr. 27, 10:12 AM
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  • Thu, Apr. 23, 5:49 PM
    • At least a half-dozen major industrial companies - including GE, Caterpillar (NYSE:CAT) Siemens (OTCPK:SIEGY), Honeywell (NYSE:HON), Dover (NYSE:DOV), Danaher (NYSE:DHR) and Emerson Electric (NYSE:EMR) - are said to be weighing offers for oilfield services assets worth $5B-$10B that Halliburton (NYSE:HAL) is preparing to sell ahead of its pending merger with Baker Hughes (NYSE:BHI), Bloomberg reports.
    • HAL reportedly will send offering materials to those companies, as well as P-E firms and rival oilfield services providers, in the coming weeks; first up likely will be the drill bits unit and another that uses data to track and steer the direction of drills.
    • These companies could own an edge over oilfield services companies that analysts have pegged as logical bidders for HAL’s castoffs - such as National Oilwell Varco (NYSE:NOV) and Superior Energy Services (NYSE:SPN) - because HAL might not want to give any more market share to companies that already offer the same services, preferring to sell to new players entering the market.
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  • Fri, Apr. 17, 5:27 PM
    • GE and Honeywell (NYSE:HON) say they will take steps to cushion the impact of a stronger dollar, after GE said foreign currency effects whacked $950M, or four percentage points, off its Q1 sales, while HON also reported a four-point Q1 drag from a stronger dollar and projected that exchange fluctuations would weigh down sales by $1.7B this year.
    • GE says it is considering different locations where it can manufacture products or components for businesses, such as its power and healthcare units, and HON has been hedging transactions that its individual foreign subsidiaries make when they import in dollars, and now it is also hedging when the company's foreign sales are translated back into the dollar.
    • The impact of currency shifts on U.S. companies will be highlighted further next week with quarterly reports from United Technologies (NYSE:UTX), which already cut its 2015 financial forecast in January over currency worries, as well as from 3M (NYSE:MMM) and Illinois Tool Works (NYSE:ITW).
    | 6 Comments
  • Fri, Apr. 17, 7:37 AM
    • Net income of $1.12B, or $1.41 a share, vs. $1B, or $1.28 a share, in the same quarter a year ago.
    • Q1 profit by segment: Aerospace +7%; Automation and Control Solutions +10%; Performance Materials +6%.
    • Q1 sales by segment: Aerospace -6%; Automation and Control Solutions -3%; Performance Materials -5%.
    • Honeywell (NYSE:HON) cut its 2015 sales outlook to a range of $39B-$39.6B from $40.5B-$41.1B and raised the lower end of its EPS outlook to a range of $6.00-$6.15 from $5.95-$6.15.
    • HON -3.6% premarket
    • Q1 results
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  • Fri, Apr. 17, 7:02 AM
    • Honeywell (NYSE:HON): Q1 EPS of $1.41 beats by $0.02.
    • Revenue of $9.21B (-4.9% Y/Y) misses by $270M.
    • Press Release
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  • Thu, Apr. 16, 5:30 PM
  • Tue, Apr. 14, 10:51 AM
    • Honeywell (HON -0.4%) Aerospace, Inmarsat (OTCPK:IMASY) and Kymeta are teaming up to create a new, higher-speed Ka-band wireless antenna for commercial and business jets.
    • The new antenna will have advanced capabilities that will bring higher-quality broadband service to aircraft, and will have a more compact design, reducing fuel and maintenance costs.
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  • Sat, Apr. 11, 9:21 AM
    • After Friday's 10.8% moonshot, General Electric (NYSE:GE) sells for 16x 2015 estimated earnings, writes Avi Salzman, a pretty rich multiple considering the company's industrial businesses have boosted operating earnings by an average 1.4% annually for the last four years.
    • United Technologies (NYSE:UTX) trades at a 16 multiple, but has grown operating earnings by an average 4.9% over that period, and Honeywell (NYSE:HON) sells for 17x after growing earnings by an average 16%.
    • "Here’s the problem: The assets they have deployed in the finance unit were generating a lot of earnings,” says a fund manager and longtime GE owner. “As they sell those down, they have to replace them with industrial earnings or share buybacks. There’s going to be a period of time where earnings will be stagnant ... The Street will get bored waiting."
    • Previously: GE's move away from finance sets up industrial deals, Immelt says (April 10)
    • Previously: GE sets plan to exit almost all of GE Capital; launches $50B buyback (April 10)
    | 128 Comments
  • Mon, Mar. 23, 4:38 PM
    • The United Steelworkers says it reached a tentative agreement on a new, three-year contract with Honeywell (NYSE:HON), covering ~150 members who were locked out of their jobs at the company's Metropolis, Ill., chemical processing facility in August 2014.
    • The local union is expected to vote on the proposed contract later this week.
    • HON's Metropolis plant is the only U.S. facility that converts uranium oxide into to uranium hexafluoride, which is then enriched to be used as fuel in nuclear power plants.
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  • Fri, Mar. 20, 7:05 AM
    • Honeywell (HON -0.8%) moves higher after Goldman added the stock to its conviction buy list with a price target of $120.
    • The firm cites strong relative free-cash-flow growth, best-in-class execution, and improving returns.
    • HON +1.9% premarket
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  • Fri, Mar. 6, 5:34 PM
    • Honeywell (NYSE:HON) has more cash than nearly all of its peers and may be warming to big acquisitions, as its head of M&A says the company could tally $10B in acquisitions by the end of 2018, possibly in “one shot.”
    • HON typically has hesitated from making big deals, but with the balance sheet containing a record $9.1B cash, "they've got to do something,” says RBC analyst Deane Dray.
    • That's got Bloomberg speculating on potential targets; Woodward (NASDAQ:WWD) could make sense because it would mesh well with HON’s aerospace offerings, with other possibilities including Brady Corp. (NYSE:BRC), Motorola Solutions (NYSE:MSI) and Japan's Yokogawa Electric (OTCPK:YOKEF).
    • HON made just one purchase of size last year - a $185M acquisition of Datamax-O’Neil - and Roger Fradin, appointed to head up a push for M&A, said at the company’s investor day Wednesday that he was frustrated at the pace of acquisitions.
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  • Wed, Mar. 4, 9:54 AM
    • "While M&A is the priority, we will deploy net cash amounts in excess of $1B-$2B for incremental share repurchase, and are committed to growing our dividend rate faster than earnings," announced CEO Dave Cote at the company's investor day.
    • Honeywell (HON -1.4%) also said it plans to add an additional dollar in earnings per share by 2018 via share repurchase programs and capital deployment.
    • Previously: Honeywell affirms 2015 financial guidance (Mar. 04 2015)
    | 2 Comments
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Company Description
Honeywell International Inc is a technology & manufacturing company, serving customers with aerospace products & services, control, sensing and security technologies for buildings, homes and industry, turbochargers, automotive products, chemicals.