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August 11, 2010
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Honeywell International Inc.’s (HON) navigation system has been chosen by the U.S. army for deployment in the M119 howitzer, which is a lightweight 105-mm howitzer used by the United States Army. It can be easily airlifted, even by helicopter, or dropped by a parachute.
The contract is an indefinite delivery and indefinite quantity contract with a potential value of $65 million to the company.
With external shock tolerance, the navigator is capable of hitting its target from a distance of five miles. It helps to accurately locate and pinpoint the target leading to precise sensor and weapon positioning. Honeywell’s offering is a self-sustained solution incorporating set-up, calibration, maintenance and logistics support.
The company’s Aerospace division, which will work on this contract, is a leading global provider of integrated avionics, engines, systems and service solutions for aircraft manufacturers, airlines, business and general aviation, military, space and airport operations.
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 contract is an indefinite delivery and indefinite quantity contract with a potential value of $65 million to the company.
With external shock tolerance, the navigator is capable of hitting its target from a distance of five miles. It helps to accurately locate and pinpoint the target leading to precise sensor and weapon positioning. Honeywell’s offering is a self-sustained solution incorporating set-up, calibration, maintenance and logistics support.
The company’s Aerospace division, which will work on this contract, is a leading global provider of integrated avionics, engines, systems and service solutions for aircraft manufacturers, airlines, business and general aviation, military, space and airport operations.
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 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 continue to be huge enablers of growth and productivity. With 80% of its manufacturing cost base now within HOS deployment, the company expects acceleration in broad sight this year, which is where we should expect transformational results.
The company remains cautious on the timing and the continued pace of the economic recovery. It 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.
We currently have a Neutral recommendation on Honeywell International.
Read the full analyst report on "HON"
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