Smart Money Leaves Out Honneywell's Nuclear Issues

Smart Money:

ith big exposure to the aerospace, auto, and oil and gas industries, and with products that can help consumers and businesses save energy, the big conglomerate -- and its stock-are poised for liftoff. Honeywell is generating lots of cash -- $1.20 for every $1 of earnings, has a healthy balance sheet and is on track to deliver a 28%-a-share earnings gain this year, on expanding margins. The company is ramping up its presence in China and India and expects those countries to contribute 20% to its growth over the next five years. Another plus: Its pension plan is almost fully funded. And its dividend yields a most respectable 2.3%. Only the defense industry, facing budget cuts, presents any sort of headwind for the Morris Township, N.J., outfit.

So confident are they of Honeywell's position, Chairman and Chief Executive David Cote and Chief Financial Officer David Anderson recently reiterated their 2011 forecast for net income of $2.9 billion to $3 billion, or $3.60 to $3.80 a share, on sales of $35 billion to $36 billion. Free cash flow is projected at $3.5 billion to $3.7 billion. Earnings for the first quarter, which ends this month, are likely to come in at the high end of the previously projected 76 to 80 cents a share.

Ironic that they are making such good money since they keep telling everyone here they are broke and can't afford to come to an agreement with workers producing Uranium Hexaflouride for USEC.

I really don't want to get into a squabble about unions, the the United Steel workers have been locked out for months in favor a scab labor in a squabble about health benefits.

Personally it appears in this case the Union may be right. Its dangerous work, 42 of them have died of cancer in the last 10 years. A pretty big risk they are taking.

I'm not really pro or against unions. People are free to do business as they see fit. But would I cross a picket line? Nope....... probably not.

Would I brag about the profit margin I made using scabs? Probably not..

Honeywell must choose!

Posted by: Howie at 11:40 AM


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