Back to top

Image: Bigstock

Honeywell Connected Plant Technology Boosts DPL's Efficiency

Read MoreHide Full Article

Honeywell International Inc. (HON - Free Report) recently announced that its Honeywell Connected Plant technology is enabling Deepak Phenolics Limited (“DPL”) to boost operational efficiency at its phenol and cumene plant located in Dahej, India. Honeywell Connected Plant UniSim Operations is being used by DPL to train process operators on safe, efficient and incident-free startups and operations.

The Honeywell Connected Plant is a suite of applications that helps in optimizing operations and predict plant failures, thus offering better safety, efficiency and profitability. As part of the company’s Connected Plant portfolio, Honeywell Connected Plant UniSim Operations uses the Operator Training Simulator (OTS) technology to help train process operators. The OTS technology was deployed by Honeywell two months ahead of schedule. Notably, the OTS system was developed on Honeywell UOP's Q-Max cumene technology.  Based on highly selective, stable and regenerable catalysts, the latest generation of cumene technology offers improved product quality, higher yields and lower utility consumption.

Existing Business Scenario

Honeywell’s diversified business portfolio enables it to earn consistent above-average returns and mitigate operating risks. Also, the company’s diligent focus on working capital management, free cash flow generation and a conservative balance sheet remain key positives amid a challenging macroeconomic environment.

In a year’s time, shares of the company have returned 6.8% against the industry’s decline of 13.7%.

Moreover, the company’s balanced mix of long- and short-cycle businesses, along with decent organic growth in new products and expansion in high-growth regions augur well on a long-term perspective. With a flexible yet disciplined focus on cost and productivity, the company remains focused on increasing its presence in high-growth regions. Also, it is well-positioned to gain from long-term expansion in markets like aerospace, facility automation and automotive turbochargers on the back of its strong market share and product line-up.

Further, the Zacks Rank #2 (Buy) company has been boosting its sales outside the United States, particularly in emerging markets like China. As emerging markets expand, demand for Honeywell's construction, automobiles and airplane products will grow. This apart, the company’s management is also focused on reducing costs and improving productivity. This operational focus should help drive higher profitability in future.

Other Key Picks

Some other top-ranked stocks from the same space are Raven Industries, Inc. , Federal Signal Corporation (FSS - Free Report) and United Technologies Corporation . While Raven Industries sports a Zacks Rank #1 (Strong Buy), Federal Signal and United Technologies carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Raven Industries surpassed estimates twice in the trailing four quarters, with an average positive earnings surprise of 9.78%.

Federal Signal outpaced estimates in each of the preceding four quarters, with an average earnings surprise of 16.07%.

United Technologies surpassed estimates in each of the preceding four quarters, with an average earnings surprise of 6.82%.

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Honeywell International Inc. (HON) - free report >>

Federal Signal Corporation (FSS) - free report >>

Published in