Honeywell International Inc. HON recently announced that its Honeywell Process Reliability Advisor has been selected by Fujian Meide Petrochemical Co., Ltd. — a wholly owned subsidiary of China Soft Packaging Group Company Ltd. Fujian Meide Petrochemical will use Honeywell Process Reliability Advisor for monitoring the operation of its UOP C3 Oleflex unit, based in China. Notably, Honeywell UOP's C3 Oleflex propane dehydrogenation technology is being used by Fujian Meide Petrochemical for the production of 660,000 metric tons of propylene per year at its plant.
The Honeywell Connected Plant is a suite of applications that helps in optimizing operations and predicts plant failures, thus offering better safety, efficiency and profitability. As a part of the company’s Connected Plant portfolio, Process Reliability Advisor improves the operations of petrochemical and gas processing plants by providing better operational insights. Additionally, it enables plants to avoid unplanned downtime for maintenance and repair.
As a software-enabled service, the Process Reliability Advisor will provide plant data on a constant basis, with the application of Honeywell UOP process and its profound troubleshooting knowledge. The delivery of crucial operational data of the plant along with process recommendations will help Fujian Meide Petrochemical in operating the plant more efficiently. In addition, the service will help in identifying issues before they can hamper production process.
Existing Business Scenario
Honeywell believes that solid demand for its warehouse automation, sensing and IoT businesses will boost revenues of the Safety and Productivity Solutions segment. Also, strength in process solutions business coupled with strong demand for equipment, absorbents and refining catalysts is likely to aid Performance Materials and Technology segment’s revenues. Further, strong demand for commercial fire and security products is expected to drive the Building Technologies segment.
However, softness in the company’s productivity products business due to inventory destocking, fewer large project rollouts in the mobility space and lower channel sell-through remains a concern.
Over the past six months, Honeywell’s shares have gained 5.8% against the industry’s decline of 0.4%.
Zacks Rank & Key Picks
Honeywell currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the same space are Federal Signal Corporation FSS, Carlisle Companies Incorporated CSL and United Technologies Corporation UTX. While Federal Signal sports a Zacks Rank #1 (Strong Buy), Carlisle and United Technologies carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Federal Signal surpassed estimates in each of the preceding four quarters, the average positive earnings surprise being 16.48%.
Carlisle outpaced estimates thrice in the preceding four quarters, the average earnings surprise being 17.16%.
United Technologies outpaced estimates in each of the preceding four quarters, the average positive earnings surprise being 13.19%.
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