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Honeywell Increases Face Mask Production to Fight Coronavirus

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Honeywell International Inc. (HON - Free Report) on Mar 22, 2020, underlined its participation in the fight against the coronavirus pandemic. Yesterday, the company’s share price declined 7.7%, to eventually close at $103.86.

As noted, the company has been taking pro-active steps to expand manufacturing operations at its Smithfield, Rhode Island site for the production of N95 face masks. Honeywell’s delivery of face masks to the U.S. Department of Health and Human Services will add to the American stockpile. This move will support the U.S. government’s ongoing efforts to protect people with the use of personal protective equipment.

Notably, the addition of the Smithfield mask production line will help in generating a minimum of 500 new jobs. As noted by the company, the recruitment, hiring and training of these manufacturing workers will commence straightway to address coronavirus-related issues. As a matter of fact, the manufacturing expansion will support other American businesses like industrial equipment providers and raw materials suppliers, which hold important places in the supply chain.

Our Take

Strong demand for commercial fire and building management products are likely to boost revenues of Building Technologies segment. Also, strength in process solutions business, and robust orders for UOP equipment and HPS projects are likely to keep boosting revenues of its Performance Materials and Technology segment. In addition, growing popularity of Honeywell’s JetWave system, supported by solid orders for Honeywell Forge and strength in the company’s commercial aftermarket business, are likely to support its Aerospace segment.

However, continued weakness in its productivity products business and high long-term debt remain causes of concern for the company.

In the past six months, the Zacks Rank #3 (Hold) company's shares have lost 37.8%, compared with industry’s decline of 29.2%.



Stocks to Consider

Some better-ranked stocks are Graco Inc. (GGG - Free Report) , Griffon Corporation (GFF - Free Report) and Broadwind Energy, Inc. (BWEN - Free Report) . While Graco and Griffon sport a Zacks Rank #1 (Strong Buy), Broadwind Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Graco delivered positive earnings surprise of 0.40%, on average, in the trailing four quarters.

Griffon delivered positive earnings surprise of 20.34%, on average, in the trailing four quarters.

Broadwind Energy delivered positive earnings surprise of 10.42%, on average, in the trailing four quarters.

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