Honeywell Wins Contract

A group company of Honeywell International Inc. (HON - Analyst Report), UOP LLC, has been selected to provide its process technology for the conversion of biomass to transportation fuels in Rentech Inc.'s Rialto Renewable Energy Center.

UOP LLC is a worldwide leading provider of process technology used to transform petroleum feedstocks to fuels and chemicals and has even developed a variety of methods to create high-quality, drop-in green fuels from natural feedstocks.

UOP LLC’s hydroprocessing technology will be used to convert biomass, such as yard and tree trimmings, into renewable, clean diesel fuel and renewable electricity. The project is scheduled to be completed in late 2012, upon which Rialto Centre is planned to generate about 640 barrels-per-day of liquid fuel and 35 megawatts of base-load electricity. The power generated from the Centre is expected to meet the daily
requirements of about 30,000 homes.

Rentech signed an agreement in August 2009 to provide up to 1.5 million gallons per year of diesel to ground service equipment in Los Angeles International Airport from the Rialto Project.

Honeywell 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 continues to boost growth and productivity. The company, however, remains cautious on the timing and the continued pace of the economic recovery. It will continue to be disciplined in cost controls and will be 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, businesses and transportation. Major competitors of Honeywell are BorgWarner Inc. (BWA - Analyst Report), Johnson Controls Inc. (JCI - Analyst Report) and United Technologies Corp. (UTX - Analyst Report).

We currently maintain our Neutral rating on Honeywell, with a Zacks #3 Rank over the next one-to-three months.

Read the full analyst report on HON

Read the full analyst report on BWA

Read the full analyst report on JCI

Read the full analyst report on UTX