|Bid||126.86 x 1100|
|Ask||127.86 x 900|
|Day's range||126.53 - 132.84|
|52-week range||101.08 - 184.06|
|Beta (5Y monthly)||1.12|
|PE ratio (TTM)||15.15|
|Forward dividend & yield||3.60 (2.71%)|
|Ex-dividend date||26 Feb 2020|
|1y target est||N/A|
Several industrial conglomerates including General Electric (GE), Honeywell (HON), Danaher (DHR) and 3M (MMM) are increasing steps to mitigate the effects of the coronavirus menace.
Honeywell (HON) increases production of healthcare materials in its bid to contribute toward the fight against the coronavirus pandemic.
(Bloomberg) -- Honeywell International Inc. is in discussions with banks to raise a new $5 billion term loan, according to people familiar with the matter.The new loan is expected to have a maturity of two years, the people said, asking not to be named because the discussions are private. A representative for Honeywell confirmed the discussions, but did not give specific details.“We are taking this and other proactive steps to further strengthen our resilience in the current environment,” the company said in an emailed statement.A representative for Citigroup Inc., which is the agent bank on the new loan, declined to comment.Dozens of investment-grade companies are tapping existing credit facilities or asking banks for additional liquidity in the form of new revolvers or term loans amid broad-based volatility due to the spreading coronavirus. Some have done so as an alternative source of short-term financing due to rising costs in the commercial paper market.Read more: Wall Street is turning away some of America’s safest borrowersHoneywell said in its statement to Bloomberg that it still had access to the commercial paper market, and that its pension was overfunded.Bloomberg Intelligence analyst Karen Ubelhart said Monday that the company was well-positioned to weather a global recession because of its diverse markets and strong operations. Honeywell also has more than $10 billion of cash on balance sheet, Ubelhart added.Honeywell is a relatively high-quality company, with credit ratings that sit five steps above junk by Moody’s Investors Service, S&P Global Ratings and Fitch Ratings. Credit-default swaps insuring the company’s debt for five years have jumped to 43 basis points as of Monday from 26 basis points at the beginning of March amid a sell-off in credit, according to ICE Data Services.The U.S. industrial conglomerate, based in Charlotte, North Carolina, released a disappointing sales forecast in January before the Covid-19 virus hit as an industrial slowdown crimped revenue growth. Honeywell’s aerospace unit sales had already been hurt by the production halt of Boeing Co.’s grounded 737 Max.“As the coronavirus halts global growth, Honeywell faces pressure in aerospace after-market sales, which represent 41% of its largest and most profitable segment,” Ubelhart said.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg Opinion) -- “We are getting what we want without the heavy hand of government,” said Peter Navarro, the White House economist who’s been put in charge of speeding up the manufacture of medical equipment that hospitals need so desperately.It was around 6:30 Sunday night when Navarro made that remark, about a third of the way through the White House’s daily coronavirus press briefing. It struck me as a fitting end to one of the most anxiety-ridden weekends of my life, comparable, I suspect, to the way my parents must have felt during the Cuban missile crisis. My wife, Dawn, has a relative living in New York, a young health-care professional who has been working around the clock since the coronavirus hit the city. She called us Saturday to say that she was feeling feverish and tired — she thought she might have Covid-19. She had put herself in self-quarantine and was being tested on Monday. Her father was sending her toilet paper from Wisconsin.A good friend of Dawn, the legal journalist David Lat, a 44-year-old man who suffers from exercise-induced asthma, was on a ventilator after contracting the virus, fighting for his life. A few weeks earlier, Dawn had planned to introduce him to a new client, but at the last minute, the client decided not to fly in from San Francisco. All weekend long, I kept thinking about that canceled meeting — about how lucky we were that the client had decided to stay home. I also have asthma, and I’m considerably older than Lat. The point is everyone has similar connections and we’re all anxious and afraid; and we’re all looking to the White House for leadership about the best way to deal with this crisis.This is what we got instead: At the press conference, Navarro was talking about the Defense Production Act, a law that gives the president the power to direct industrial production. Five days earlier, President Donald Trump had “invoked” the Act, but he was clearly reluctant to actually use it. I couldn’t understand why — and I was hardly alone.Now, here was the answer: The act, in the view of the Trump administration, represented not a tool that could help the country mobilize against the unseen enemy but “the heavy hand of government.” Really? Despite the dire straits the country is in, this Republican administration is being guided by classic Republican ideology, not common sense.When it was time for the media to question the president, a reporter asked Trump why he wasn’t using the act, noting that governors across the country “were pleading” with him to start using it.Astonishingly, Trump claimed that using it would mean nationalizing businesses, even citing the example of Venezuela (“Call a person in Venezuela and ask them how did the nationalization of their businesses work out.”) Plus, he said, it would send “tremors though our business community.” The mere fact that the Defense Production Act had been invoked, he insisted, was causing businesses like General Motors and Honeywell to step up.Finally, there was this excuse, which nearly caused me to throw my iPad across the room: “If we go out and we want masks, we don’t know who to call on masks. But Hanes called us and said, ‘We’re going to make millions of masks.’” He continued, “If we call a company to make a ventilator, they don’t even know what a ventilator is.” And on and on and on.Imagine if President Franklin Roosevelt and his head of military production, William Knudsen (a former head of General Motors), had taken the same approach during World War II. What if instead of directing Ford to stop making cars and start making bombers, they waited for companies to volunteer to make this or that? Instead of figuring out which companies could do what, they waited for companies to tell them what they were capable of. By insisting on action, rather than hoping for it, the U.S. was able to transform 30% of its industrial might to military production. It was a huge factor in winning the war.Of the many articles about the crisis I read during the weekend, the one that stuck with me the most was about the critical shortage of ventilators. Written by Daniel M. Horn, a young doctor at Massachusetts General Hospital, it shows, implicitly but powerfully, why Trump’s free-market fundamentalism is completely wrong for this moment.There are three issues that need to be solved, he wrote: “ventilator production, ventilator distribution and ventilator operation.” He went on to say that he and other doctors had been receiving texts saying things like, “My company makes parts for GE ventilators.” And he noted that GM was helping a small ventilator company scale up. Tech leaders, he added, were calling hospitals asking for ventilator specs. But to pull all this together, Horn wrote, “we need a plan.”Ditto for distribution and operation. Which hospitals should get the ventilators? How many? How would they be delivered? Horn suggested a “cloud-based national ventilator surveillance platform” built by one of the big tech companies and managed by the Federal Emergency Management Agency. Again, someone would have to draw up a plan and then see that it is executed.As for operations, more people would be needed to run these machines than are now available. Using one does not appear to be rocket science, but it does require training. Who will do that training? How will their competence be certified?Reading Horn’s article, I was struck by how much the federal government could do if it could only cast off its ideological blinders. Suppose Trump appointed a ventilator czar and gave him or her the power to employ the Defense Production Act. Instead of waiting for companies to come to him, he could seek out the companies that made the most sense for adapting factories to make ventilators. He could designate which company would make the surveillance platform and how it would operate. Skills-based community colleges could be given the task for training operators. None of this will happen without the government’s willingness to take charge — and yes, to use the act.(A quick aside: late Sunday night, as I was thinking about this, it occurred to me that this would be a perfect role for Ash Carter, President Barack Obama’s Secretary of Defense. Before taking the top job he was the assistant secretary for acquisition, technology and logistics — exactly the skills that are so desperately needed now in the Trump administration. But of course he was an Obama man, so it will never happen.)What is stunning is how passive the administration is, how lacking in urgency, even now. States have to fend for themselves. People have to fend for themselves. On Monday, Senator Chris Murphy of Connecticut said he and other Democratic lawmakers would introduce legislation to federalize the medical supply chain.In his press conferences, Trump is constantly talking about how fast things are happening and how quickly progress is being made, but we all know it’s not true. He is, in fact, urgent about one thing: reviving the stock market. I’m now reading articles that the president wants to end social distancing soon and push people back to work, even if the virus is still among us. “We cannot let the cure be worse than the problem itself,” he tweeted — in all caps — just before midnight on Sunday.You know what we boomers used to say: “You’re either part of the solution or part of the problem.” In the two months since the coronavirus hit U.S. shores, the Trump administration remains part of the problem.(Corrects spelling of a company identified by President Trump in the eighth paragraph. )This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Joe Nocera is a Bloomberg Opinion columnist covering business. He has written business columns for Esquire, GQ and the New York Times, and is the former editorial director of Fortune. His latest project is the Bloomberg-Wondery podcast "The Shrink Next Door."For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Honeywell's (HON) Forge platform empowers aviation customers with a user friendly, integrated dashboard that helps in sending instant alerts on issues related to connectivity and flight plan changes.
(Bloomberg Opinion) -- When you’re in a critical fight, you need to use all the weapons at your disposal. And so, it’s time once again for America to marshal its great arsenal of democracy. Just as Detroit automakers became aircraft, tank and gun manufacturers during World War II, today’s industrial companies need to repurpose their factories for the tools needed to fight the current enemy: the coronavirus.Countries across the globe sealed their borders over the weekend and relegated citizens to the confines of their homes in an effort to slow the spread of the deadly virus before it overwhelms the Western World’s health-care systems. The president of Massachusetts General Hospital called on Sunday for the federal government to go into a “war-like stance” and launch a “Manhattan Project” to accelerate production of protective gear. No such plan has been announced by the Trump administration, but U.S. industrial companies should heed the call anyway. Because as far as wars go, this is one for which the country is woefully unprepared.The U.S. has fewer than 170,000 ventilators available for patient care, including estimates for those in the national stockpile, according to a report last month from the Center for Health Security at Johns Hopkins Bloomberg School of Public Health. (The school is supported by Michael Bloomberg, founder and majority owner of Bloomberg LP, the parent company of Bloomberg News.) The number of face masks in that strategic reserve was depleted in the swine-flu outbreak of 2009 and as of early March it held only about 12 million N95 respirators and 30 million surgical masks, significantly fewer than the 3.5 billion masks experts estimate the U.S. would need in a severe pandemic, according to the Washington Post. It falls to private manufacturers to step in and fill the void.With airlines parking jets, consumers locked in their homes and companies focusing on managing the disruption, demand for jet engines, HVAC systems and factory equipment is going to shrivel up for the near future. Rather than sit idle, American factories should be redeployed for the products needed to fight the coronavirus, whether that’s face masks, ventilators, other health-care equipment or even toilet paper for that matter. The Trump administration has already leaned heavily on companies such as Laboratory Corp. of America Holdings, Roche Holding AG and Walmart Inc. to improve the availability and access to testing. But White House virus response coordinator Dr. Deborah Birx warned on Sunday that there will be a spike in cases as more people get access to tests. That’s when the real work is going to begin for the nation’s hospitals. It’s in every U.S. company’s interest to make sure they’re as prepared as possible, and manufacturers have a key role to play. Companies such as 3M Co. and Honeywell International Inc. already make masks and personal-protective gear, but they will need help to meet the huge demand.After China declared a “people’s war” on the outbreak in that country, companies including electric automaker BYD Co., petroleum refiner Sinopec and iPhone assembler Foxconn started making masks instead. French luxury-goods maker LVMH announced Sunday it’s converting perfume and cosmetics factories to make hand sanitizer, which it will deliver free of charge to the local authorities and hospital system. In the U.K., Prime Minister Boris Johnson is calling on manufacturers including Dyson, Unipart Group, Honda and Ford to help with that country’s ventilator shortage, according to the Financial Times. American companies need to follow this lead. Apart from the moral and patriotic implications, it’s just good business sense. The faster the world responds to this health crisis, the faster it can get back on its feet.To contact the author of this story: Brooke Sutherland at email@example.comTo contact the editor responsible for this story: Beth Williams at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Brooke Sutherland is a Bloomberg Opinion columnist covering deals and industrial companies. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). We'll show how you can use...
Juniper Industrial Holdings, Inc. CEO Roger Fradin and CFO Brian Cook By John Jannarone The industrials sector is ripe with acquisition opportunities, thanks to attractive cash-flow dynamics, a relatively stable market, and meaningful barriers to entry. That’s according to Roger Fradin and Brian Cook, CEO and CFO, respectively, of Juniper Industrial Holdings – a special-purpose […]
(Bloomberg Opinion) -- The last thing anyone needs in this coronavirus situation is more panic, but there’s a notable gap between the alarms emanating from the airline industry and the sanguine attitude among the companies that supply their spare parts and maintenance work. Tuesday brought a flood of fresh warnings from U.S. carriers on canceled flights, with Delta Air Lines Inc. and American Airlines Group Inc. following United Airlines Holdings Inc. in pulling their guidance for the year. All three carriers also announced plans to reduce their capital expenditure plans, with United saying spending could be deferred for up to four years. Meanwhile, Southwest Airlines Co. CEO Gary Kelly warned of a sharp decline in bookings and said the company was "seriously considering" reducing its flight schedule, according to a Monday video message to employees viewed by the Wall Street Journal. "The velocity and the severity of the decline is breathtaking," he said. "There is no question this is a severe recession for our industry and for us, and it's a financial crisis." By contrast, aerospace supplier Honeywell International Inc. reiterated both its first-quarter and full-year guidance on Tuesday.Back in February, when the spread of the virus was escalating rapidly in China but was still mostly contained to Asia, I pondered whether this might be what finally takes the wind out of an aerospace boom that was starting to look overblown. I quoted a report from Vertical Research analyst Rob Stallard who pointed out that, “unfortunately, aerospace companies are normally the last to get the memo.” We may now be seeing that dynamic play out.Part of the problem is a natural information lag. Honeywell acknowledged that assumptions underlying its numbers – including minimal economic impact in China from the coronavirus and a macro environment consistent with the end of 2019 – were being challenged. But with sales already tending to be weighted toward the last month of the quarter, there’s not enough visibility right now to give a more formal update to the numbers, Chief Financial Officer Greg Lewis said. The implicit takeaway seemed to be that guidance will likely need to be reduced; the company just isn’t prepared to do so today and struck an optimistic tone that the ultimate damage could be relatively contained. United Technologies Corp., which is set to separate its aerospace arm from the Carrier climate and Otis elevator units later this year, also has been mum on the potential hit to its business as the virus has spread beyond Asia. Engine makers Safran SA and General Electric Co. have modeled a financial hit for the first quarter but nothing beyond that.The steady drumbeat of increasingly dire warnings out of airlines suggests this is going to get worse before it gets better. United President Scott Kirby said Tuesday that net U.S. bookings are down about 70% and the airline expects to see further deterioration. The wave of conference cancellations, including the JPMorgan Chase & Co. industrial conference he was speaking at, which was moved to a virtual format, has wiped out much of corporate travel, while the impact on leisure demand is likely to grow amid mounting public concern, Kirby said. While the Trump administration has pledged fiscal stimulus to prop up the virus-stricken economy — and President Donald Trump on Tuesday indicated specific help to airlines and cruise lines — it remains unclear what that would look like.The capacity reductions so far closely track the spread and severity of the virus outbreaks. The deepest cuts are still in the Asia-Pacific region, with American yanking routes to Beijing, Shanghai and Hong Kong through October, while Delta plans on Pacific capacity being down 65% versus its original plan. But Europe is increasingly becoming a no-fly zone as well, with American temporarily suspending certain service to Barcelona, Rome, Paris and Madrid, and Delta planning on as much as a 20% reduction in transatlantic flights. If the trend line for the virus holds and cases continue to rise exponentially in the U.S., it stands to reason that American’s 7.5% cut to domestic flights in April and Delta’s as much as 15% reduction in capacity will be the beginning rather than the end of the retrenchment. United, which has cut 10% of its domestic schedule for April, said it would evaluate and cancel flights on a rolling 90-day basis until it sees signs of a demand recovery.The plunge in oil prices helps reduce one of airlines' biggest expenses, with Delta modeling $2 billion of savings for 2020. But even with that booster, airlines are looking at cutting costs to offset the financial blow from the demand drop. Delta is parking both wide-body and narrow-body aircraft and evaluating early retirements for its older fleet. That will lead to “significant” savings on maintenance, executives said in a presentation Tuesday at the JPMorgan industrial conference. That means significantly less profits for the aerospace suppliers that rely on a lucrative stream of repair and spare-parts work.More troubling over the longer term is the risk that a sustained hit to demand starts to affect plane orders. Delta is deferring $500 million of capital expenditures largely tied to discretionary projects that can be put off with “no regrets,” executives said. But the company also said it has to take a look at aircraft deliveries, especially if the environment gets worse. Southwest is still planning on receiving deliveries of Boeing Co.’s grounded 737 Max jet in the third quarter, but Kelly cautioned in the employee video that the company will “maintain all options” if demand doesn’t recover. Airbus SE is reportedly weighing whether to lower its target for 2020 deliveries and it’s worth mentioning that the deferral requests so far remain concentrated among Asian airlines.Honeywell CFO Lewis said the company continued to expect the coronavirus to be a short-term disruption and hopefully he’s right. But in situations like this, it helps to follow the money. And in that light, it feels notable that Southwest’s Kelly is taking a 10% pay cut and United Airlines CEO Oscar Munoz and President Kirby plan to forgo 100% of their base salaries at least through June 30. To my knowledge, no such salary adjustments have been announced on the part of aircraft and parts-manufacturing companies.(Updates with information from United Airlines in the second and fifth paragraphs.)To contact the author of this story: Brooke Sutherland at email@example.comTo contact the editor responsible for this story: Beth Williams at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Brooke Sutherland is a Bloomberg Opinion columnist covering deals and industrial companies. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
In a race where most of the major players are vying for attention, Honeywell has quietly worked on its efforts for the last few years (and under strict NDA's, it seems). In addition, Honeywell also today announced that it has made strategic investments in CQC and Zapata Computing, both of which focus on the software side of quantum computing. The company has also partnered with JPMorgan Chase to develop quantum algorithms using Honeywell's quantum computer.