The fall of oil prices is definitely a bad news for companies even when it is a good news for those who are consumers. However, Honeywell International Inc., which is a diversified US manufacturer, take the decline of oil prices as something that will be beneficial. This is an uncommon standpoint of a business. They still think of it as something that can be advantageous even after the Wall Street target barely made it into the forecast for the year 2015.
The reason why Honeywell International Inc. sees this situation as beneficial simply because they can really benefit from it. Honeywell’s businesses is usually in the downstream or midstream area, which includes refiners, by which they are set to gain should the low prices of oil will encourage a strong demand from the buyers. Low oil price also means reduction of utilities, freight cost, and other miscellaneous fees.
Tom Szlosek, who is the Chief Financial Officer of Honeywell International Inc., bravely told the analysts via a conference call that they see oil price decline as a good thing for them. Will the oil price continue to fall down or will Honeywell have to say goodbye to the benefits related to the decline of oil price?