Honeywell International Inc (HON) is developing turbos specifically suited for Chinese vehicles, as the local sales of turbocharged light vehicles are expected to register a growth of more than 20% in 2011 compared to 2010, up to 2.3 million units, driven by strong adoption of turbocharger technology across all vehicle segments and car manufacturers.
Turbocharger technology allows car manufacturers to provide 20%-40% more fuel efficiency, improved quality of emissions to meet stringent regulatory requirements and all these come without compromising performance.
Honeywell opened its Shanghai Turbo Engineering Center in 2002, which has been critical to the development of China-specific turbo solutions.
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 consistently above-average returns. The company’s focus on working capital management, free cash flow generation and balance sheet strength is a positive attribute 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 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. 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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