Honeywell International Inc.'s (HON) supply chain shifts may have helped it sidestep the tariffs that have stung its industrial peers.
The company's shares rose 1.6% as of 3:40 p.m. in New York, increasing nearly 20% in the past year.
The growth is particularly notable against the backdrop of a trade war between two of the company's primary markets: the U.S. and China.
CEO Darius Adamczyk explained the company's supply chain measures have insulated the company from the trade battle to Jim Cramer last night on CNBC.
"One of the things that we pride ourselves on is that we have very much a local-for-local strategy," he said. "So most of our manufacturing, innovation, for example, for China, takes place in China."
He explained that the company has the same domestic-based strategy for the United States.
"So, actually, the tariffs are not a big mover for us because we're very much local-for-local," he concluded.
The comments regarding the tariffs and the mitigation of their impact follow statements from Adamczyk during the company's July earnings presentation in which he told analysts that the company is prepared to make further adjustments to reduce the impact of macro factors on the company's bottom line.
"For 2019, we're evaluating more structural solutions for longer-term tariff impacts, including potentially bringing on new sources of supply, where needed," he explained.
However, despite the avoidance of major damage from tariff actions, Adamczyk admitted a modest impact from the trade spat between the world's two largest economies, He is hoping for the dispute to be resolved.
In any event, the company is expressing far less concern than its industrial sector peers.
Since President Trump signed his first memorandum on trade with China in August 15 and further on to the announcement of more than $200 billion in tariffs on Chinese goods in $200 million, companies like Boeing Company ( (BA) ) and Caterpillar, Inc. (CAT) have decried the action as perilous to their businesses.
Caterpillar in particular said that tariffs could add up to $200 million in costs to its materials and supply chain costs.
On the back of the tariff impositions this summer, the stock reached its low for the year in August and has posted a year to date return of -10.2%, according to FactSet data.