Honeywell Snags a $16 Billion Contract for Airbus’ A350 aircraft
From Staff Reports
Honeywell International Inc. (HON) announced yesterday (Wednesday) that it won a $16 billion contract to provide mechanical systems for Airbus SAS’s long-range, wide-body A350 aircraft.
The 20-to 25-year contract will give New Jersey-based Honeywell, the world’s biggest maker of auxiliary power generation units, clearance to design and build systems that supply pneumatic and electric power for the aircraft. Honeywell will also provide environmental-control systems for cabin heating and cooling and cabin pressurization.
The A350-XWB won’t take flight until about 2013, five years after Boeing’s 787 is slated for its first delivery.
Bloomberg News reports that Honeywell’s aerospace unit made up $11.1 billion of the parent company’s $31.4 billion in revenue last year. Its 2007 forecast calls for $12.1 billion in aerospace sales this year.
News of the contract sent Honeywell’s shares up 98 cents each, or 1.71%, to close at $58.26 yesterday.
Honeywell will issue its third-quarter earnings report before the start of trading on Friday, Oct. 19. The company will also host a conference call with investors, starting at 8 a.m.
