CEO of Honeywell International (HON) Darius Adamczyk remains optimistic in his outlook for the global economy in 2023 and the company’s prospects leading up to what is expected to be a recession. That is in line with the Club’s belief that companies, such as Honeywell, that generate income will benefit next year. “There will be pockets of energy like our aerospace industry” and the energy sector, Adamczyk said Tuesday in an interview with CNBC at the World Economic Forum in Davos, Switzerland. However, he added, “some short businesses will struggle.” Honeywell is a multi-industry giant, focusing on areas of economic importance. Its products include aircraft engines, industrial chemicals and carbon capture technology to name a few. Adamczyk indicated that some of the biggest challenges of the past year will continue in 2023. to ensure that inflation is under control. Speaking with CNBC in early December, Adamczyk said he’s “not very optimistic about 2023,” adding that he doesn’t believe the economy will be a “catastrophe.” Climate change spending According to Adamczyk, spending on efforts to combat the effects of climate change should be sustained, even in the face of an economic downturn. “I’ve never seen a correlation between a strong economy and diversity on the path to stability.” A senior executive said more than 60% of Honeywell’s total business consists of climate-related solutions. “All these businesses have made commitments to be carbon neutral.” He added that “it will take many years,” suggesting that Honeywell’s energy technology will be necessary despite tough economic times. China reopens China’s reopening after its strict Covid policy is good for the global economy, Adamczyk said, calling China “the most important place in the world.” He sees “huge demand waiting” among businesses and consumers alike in the world’s second-largest economy. The lifting of pandemic restrictions there, especially as they relate to travel, is expected to strengthen the demand for aerospace. That would be good for Honeywell’s aerospace services, which make up about a third of Honeywell’s revenue. Adamczyk expects the first quarter to be “a little rocky as the country opens up” — but in the long run, he’s excited about the prospect. Team taken We were glad to hear the optimism from Adamczyk on Tuesday amid a heap of pessimism in the market. Honeywell has been able to deliver despite a challenging post-economy filled with supply constraints, decades-high inflation and rising interest rates. Going forward, their aviation industry is well-positioned to benefit from China’s economy, while its sustainable technology solutions appear to be resistant to the economic downturn. Despite Tuesday’s drop, Honeywell shares have gained more than 18% in the past three months compared to the S & P 500’s more than 7% previously. Honeywell is set to release fourth-quarter results on Feb. 2. (Jim Cramer’s Charitable Trust is long HON. See here for a complete list of stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive. trade warning before Jim trades. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charity portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing a trade warning before making a trade. THIS SUBSCRIPTION GROUP IS SUBJECT TO OUR TERMS AND CONDITIONS AND PAINTING POLICY, AND OUR DISCLAIMER. NO LEGAL OR LIABILITY EXISTS, OR IS CREATED, AS A RESULT OF YOUR OBTAINING ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO PARTICULAR RESULTS OR BENEFITS ARE GUARANTEED.
Darius Adamczyk, Honeywell Chairman and CEO, speaking at the Squawk Box at the WEF in Davos Switzerland on Jan. 17, 2023.
Adam Galica | CNBC
Honeywell International (HON) CEO Darius Adamczyk remains optimistic in his outlook for the global economy in 2023 and the company’s optimism leads to what is expected to be a recession. That is in line with the Club’s belief that companies, such as Honeywell, that generate income will benefit next year.