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Released February 07, 2022 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Honeywell International (NYSE:HON) (Morris Plains, New Jersey) is among the technology, equipment and service providers feeling the heat from inflationary pressure and supply chain problems. Executives say the company is focusing on emerging technologies, such as green fuels and blue hydrogen, to lock in growth. Industrial Info is tracking more than $20.8 billion worth of active projects involving Honeywell, including $10.2 billion worth in the U.S. and Canada.
Click on the image at right for a graph detailing the top 10 industrial sectors for active projects involving Honeywell in the U.S. and Canada.
"Orders across Honeywell [in full-year 2021] grew double digits organically, and backlog increased 7% to $27.7 billion, driven by strength in many of our segments as we entered 2022," said Darius Adamczyk, the chief executive officer of Honeywell, in an earnings-related conference call. But executives warned ongoing supply constraints, COVID-dampened travel demand and "evolving geopolitical uncertainties" will weigh heavily on the first half of the year.
Adamczyk pointed to Honeywell's green fuels business, which uses subsidiary UOP's Ecofining technology to produce "high-quality drop-in fuels from sustainable sources." At least two proposed, big-ticket alternative-fuel projects in the U.S. plan to use Ecofining if they are built: NEXT Renewable Fuels Incorporated's (Portland, Oregon) waste-to-energy plant in Clatskanie, Oregon, which is designed to turn 37,500 barrels per day (BBL/d) of waste oils and animal fats into renewable diesel, and Emerald Biofuels LLC's (Chicago, Illinois) Emerald One refinery in Port Arthur, Texas, which would produce renewable diesel and refined co-products from natural oils, waste grease and animal fat.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Alternative Fuels Project Database can read detailed reports on the Clatskanie and Port Arthur projects.
IIR Energy is now letting users track existing facilities, new-build projects, refinery conversions, unit additions and expansions for renewable diesel and biodiesel fuels, including both scheduled and unscheduled offline events. For more information, see December 14, 2021, article - New Tool Keeps Users Ahead in the Fast-Growing Market for Renewable Diesel, Biodiesel Fuels.
Green isn't the only color Honeywell is adding to its palate: The company is stepping into the growing field of blue hydrogen, which is produced from natural gas via steam methane reforming, with the associated carbon dioxide (CO2) sequestered via CO2 capture. UOP would serve as a technology provider to Philbro LLC's (Stamford, Connecticut) proposed blue hydrogen plant in West Terre Haute, Indiana, which is seeking permits for construction. Subscribers can learn more from Industrial Info's project report.
Lewis noted orders in UOP were up 25% year over year, driven by higher petrochemical-catalyst and gas-processing shipments. UOP is serving as a technology provider on the single highest-valued project using Honeywell's services: Inter Pipeline Limited's (Calgary, Alberta) $1.77 billion propane dehydrogenation (PDH) plant at its Heartland Petrochemical Complex in Fort Saskatchewan, Alberta, which is designed to produce 1.1 billion pounds per year of propylene; when completed, the full complex will convert locally sourced propane into 525,000 tons per year of polypropylene. Subscribers can learn more from Industrial Info's project report.
Honeywell expects sales of $35.4 billion to $36.4 billion in 2022, which would represent organic growth of roughly 4% to 7% from full-year 2021's sales of $34.4 billion. The total for 2021 was a 5% increase over full-year 2020's sales of $32.64 billion.
"Excluding the impact of the lower COVID mask demand, which will approximately be a one [percentage] point headwind, we expect organic growth of 5% to 8%," said Greg Lewis, the chief financial officer of Honeywell, in the conference call. "The first half [of 2022] will be slower and, as additional supplier capacity comes online, we'll see significant sequential improvement and stronger growth in the back half of the year."
Declining demand for COVID-19 masks weighed on Honeywell's results toward the end of 2021, which stood in sharp contrast to the rest of the calendar year. Sales for fourth-quarter 2021 totaled $8.66 billion, a 2.7% decline from fourth-quarter 2020; however, the company's decision to increase prices to offset the effects of inflation paid off in its profits, which stood at $1.43 billion, a 5% increase from the same period last year.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
Click on the image at right for a graph detailing the top 10 industrial sectors for active projects involving Honeywell in the U.S. and Canada."Orders across Honeywell [in full-year 2021] grew double digits organically, and backlog increased 7% to $27.7 billion, driven by strength in many of our segments as we entered 2022," said Darius Adamczyk, the chief executive officer of Honeywell, in an earnings-related conference call. But executives warned ongoing supply constraints, COVID-dampened travel demand and "evolving geopolitical uncertainties" will weigh heavily on the first half of the year.
Adamczyk pointed to Honeywell's green fuels business, which uses subsidiary UOP's Ecofining technology to produce "high-quality drop-in fuels from sustainable sources." At least two proposed, big-ticket alternative-fuel projects in the U.S. plan to use Ecofining if they are built: NEXT Renewable Fuels Incorporated's (Portland, Oregon) waste-to-energy plant in Clatskanie, Oregon, which is designed to turn 37,500 barrels per day (BBL/d) of waste oils and animal fats into renewable diesel, and Emerald Biofuels LLC's (Chicago, Illinois) Emerald One refinery in Port Arthur, Texas, which would produce renewable diesel and refined co-products from natural oils, waste grease and animal fat.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Alternative Fuels Project Database can read detailed reports on the Clatskanie and Port Arthur projects.
IIR Energy is now letting users track existing facilities, new-build projects, refinery conversions, unit additions and expansions for renewable diesel and biodiesel fuels, including both scheduled and unscheduled offline events. For more information, see December 14, 2021, article - New Tool Keeps Users Ahead in the Fast-Growing Market for Renewable Diesel, Biodiesel Fuels.
Green isn't the only color Honeywell is adding to its palate: The company is stepping into the growing field of blue hydrogen, which is produced from natural gas via steam methane reforming, with the associated carbon dioxide (CO2) sequestered via CO2 capture. UOP would serve as a technology provider to Philbro LLC's (Stamford, Connecticut) proposed blue hydrogen plant in West Terre Haute, Indiana, which is seeking permits for construction. Subscribers can learn more from Industrial Info's project report.
Lewis noted orders in UOP were up 25% year over year, driven by higher petrochemical-catalyst and gas-processing shipments. UOP is serving as a technology provider on the single highest-valued project using Honeywell's services: Inter Pipeline Limited's (Calgary, Alberta) $1.77 billion propane dehydrogenation (PDH) plant at its Heartland Petrochemical Complex in Fort Saskatchewan, Alberta, which is designed to produce 1.1 billion pounds per year of propylene; when completed, the full complex will convert locally sourced propane into 525,000 tons per year of polypropylene. Subscribers can learn more from Industrial Info's project report.
Honeywell expects sales of $35.4 billion to $36.4 billion in 2022, which would represent organic growth of roughly 4% to 7% from full-year 2021's sales of $34.4 billion. The total for 2021 was a 5% increase over full-year 2020's sales of $32.64 billion.
"Excluding the impact of the lower COVID mask demand, which will approximately be a one [percentage] point headwind, we expect organic growth of 5% to 8%," said Greg Lewis, the chief financial officer of Honeywell, in the conference call. "The first half [of 2022] will be slower and, as additional supplier capacity comes online, we'll see significant sequential improvement and stronger growth in the back half of the year."
Declining demand for COVID-19 masks weighed on Honeywell's results toward the end of 2021, which stood in sharp contrast to the rest of the calendar year. Sales for fourth-quarter 2021 totaled $8.66 billion, a 2.7% decline from fourth-quarter 2020; however, the company's decision to increase prices to offset the effects of inflation paid off in its profits, which stood at $1.43 billion, a 5% increase from the same period last year.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
