Credit: Shutterstock photoIndustrial goods manufacturer Honeywell International Inc.HON recently acquired privately-held global aviation software company Aviaso for an undisclosed amount. The acquisition will likely give a competitive edge to the beleaguered Aerospace portfolio that faces headwinds from protracted budget allocations for defense and aerospace funds by the U.S. government.
Headquartered in Zurich, Switzerland, Aviaso offers indigenous software that analyze data on aircraft fuel usage to identify possible avenues to cut costs and save highly expensive aviation fuel. Various research studies have proved that even a single digit efficiency improvement in aviation fuel efficiency can yield millions of dollars in savings as fuel consumption usually makes up as much as 20%-40% of an airline's operating costs. Aviaso also offers software to identify possible causes of emissions as well as consulting and training for fuel efficiency and emissions management.
With Aviaso on board, Honeywell will be able to strengthen its comprehensive service offerings by adding the fuel management services to its portfolio. The acquisition further augments Honeywell's European presence and better positions it to capitalize on the markets where Aviaso operates, which includes a software development facility in Sofia, Bulgaria.
Despite modest GDP growth in most regions across the globe in 2015, Honeywell remains focused to deliver high organic growth, strong margin expansion, and double-digit earnings growth in the current year. We are encouraged by management's continued efforts to drive organic growth while expanding its business in new geographical regions.
Honeywell is a global diversified technology and manufacturing company with a wide range of 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, business and transportation.
Honeywell currently has a Zacks Rank #3 (Hold). Other stocks that look promising in the industry and are worth a look include Luxfer Holdings PLC LXFR , Graco Inc. GGG and Energous Corporation WATT , each carrying a Zacks Rank #2 (Buy).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
