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Honeywell reinstates guidance, expects 14% profit decline in 2020

December 01/2020

MOSCOW (MRC) -- Honeywell's performance materials and technologies unit reports third-quarter net profit of USD442 million, down 24.0% year on year (YOY), on sales down 15.6% YOY, to USD2.2 billion, said the company.

Honeywell  (HON) - Get Report on Friday posted third-quarter adjusted earnings that beat analysts forecasts and sales ahead of predictions as double-digit growth in its defense and space, warehouse automation and PPE products and services offset a drop in aerospace revenue.

The company also reinstated guidance for its fourth quarter and full year amid expectations that the worst effects of the pandemic are past. Honeywell posted net income of USD781 million, or USD1.07 a share, vs. USD1.65 billion, or USD2.23 a share, in the comparable year-ago period. On an adjusted basis, the company earned USD1.56 a share, above the USD1.49 a share expected by analysts polled by FactSet.

Sales came in at USD7.8 billion, down 14% from USD9.1 billion a year ago though above analysts forecasts of USD7.7 billion. Aerospace sales, which includes parts for commercial airplanes, fell 25% on a year-over-year basis, driven by reduced flight hours and lower volumes among carriers due to the pandemic and drop-off in travel.

However, sales of "safety and productivity solutions" gained 8%, driven by double-digit sales of personal protective equipment as well as a return to growth in productivity solutions and services, Honeywell said. Orders for PPE were up approximately 150%, with backlog at a record high, Honeywell said.

As MRC informed earlier, Honeywell UOP has announced that French energy company Total will utilize Honeywell UOPs Ecofining process technology to produce renewable fuels, primarily for the aviation industry, at its Grandpuits platform at Seine-et-Marne in north central France. Once completed, the bio-refinery will process 400,000 tons of feed per year, producing up to 170,000 tons of sustainable aviation fuel, 120,000 tons of renewable diesel and 50,000 tons of renewable naphtha for production of bioplastics.

We remind, Honeywell announced Zhenhua Petrochemical Co. Ltd will use Honeywell UOPs C3 Oleflex technology for propane dehydrogenation to process 1 million metric tons per year of polymer-grade propylene for a proposed plant in Dongying City, Shandong Province, China.

As MRC reported earlier, in May, 2020, Honeywell announced that Enterprise Products Partners L.P. will use Honeywell UOPs C3 Oleflex technology in its second propane dehydrogenation plant, called "PDH 2". Located near Mont Belvieu, Texas, PDH 2 will produce 750,000 metric tons per year of polymer-grade propylene as part of Enterprises expansion of propylene manufacturing capacity.

Propylene is the main feedstock for the production of polypropylene (PP).

According to MRC's ScanPlast report, PP shipments to the Russian market reached 880,130 tonnes in the nine months of 2020 (calculated using the formula: production minus exports plus imports, exluding producers" inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.
Author:Anna Larionova
Tags:petroleum products, crude oil, neftegaz, petrochemistry, Honeywell.
Category:General News
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