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Honeywell's New Software to Ensure Industrial Worker Safety

Zacks Equity Research

Industrial goods manufacturer Honeywell International Inc. HON recently launched indigenous software to support its increasing portfolio of connected industrial workers. The comprehensive safety software platform – Honeywell Sotera – is likely to help customers fortify their safety management program in order to keep the facilities and personnel safe. The software is further expected to boost employee productivity by eliminating undue safety-related tensions, while reducing compliance and administrative costs through lower downtime.  

Honeywell Sotera will support two-way communication facility with connected workers at remote locations, providing automatic safety alerts to avert any crisis along with real-time awareness of potential pitfalls and the ability to respond to such situations. With such innovative products, customers can monitor the safety of its workers and optimize their field operations to avoid outages and unplanned maintenance to ease administrative burden.

Earlier this week, Honeywell announced the start of commercial operations in its new manufacturing plant in Geismar, LA. The facility will manufacture HFO-1234yf, sold commercially as Solstice yf, to meet the increasing demand for this environment friendly air conditioning refrigerant for the auto industry.

Developed indigenously, Solstice yf has a global-warming-potential (GWP) of less than one. This is lower than carbon dioxide and 99.9% lower than R-134a – the most widely used refrigerant in the automotive industry – with a GWP of 1300. R-134a is a hydrofluorocarbon and is usually held responsible for producing extensive greenhouse gases. Consequently, several countries and industries are increasingly looking out for other alternatives like Solstice yf in order to phase out this pollutant.

Honeywell has invested significantly to build this state-of-the-art manufacturing facility in Louisiana, which is likely to become the world’s largest producer of Solstice yf. In the process, the company created several jobs in the area to boost the economic development of the region. With a ramp up in production, 40 million cars are expected to use Solstice yf by the end of 2017, up from its present tally of 20 million. Higher adoption of this refrigerant across the globe will reportedly reduce greenhouse gas emissions produced by over 30 million cars from the road.

With such state-of-the-art products, Honeywell aims to gain a competitive edge over its rivals and augment its revenues. The company has outperformed the Diversified Operations industry in the last three months with an average return of 4.7% as against a decline of 1.7% for the latter. We remain impressed with the inherent growth potential of this Zacks Rank #3 (Hold) stock. Some better-ranked stocks in the industry include 3M Company MMM, Bunzl plc BZLFY and Crane Co. CR, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

3M has a long-term earnings growth expectation of 9.7%. It surpassed estimates thrice in the trailing four quarters with an average positive earnings surprise of 1.3%.

Bunzl has a long-term earnings growth expectation of 7.5%.

Crane has a long-term earnings growth expectation of 10.1%. It surpassed estimates in each of the trailing four quarters for an average positive earnings surprise of 8.4%

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