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Honeywell International Inc (NASDAQ:HON) Baird Global Industrials Conference November 12, 2024 8:20 AM ET Company Participants Ken West - President and CEO, Energy and Sustainability Solutions Conference Call Participants Peter Arment - Baird Peter Arment Okay. Good morning, everyone. Thank you for joining us. My name is Peter Arment. I'm a senior aerospace defense analyst here at Baird. We're delighted to have Honeywell International with us. And with us from Honeywell, we have Ken West, who's the Presiden ...

Honeywell International Inc (NASDAQ:HON) Baird Global Industrials Conference November 12, 2024 8:20 AM ET Company Participants Ken West - President and CEO, Energy and Sustainability Solutions Conference Call Participants Peter Arment - Baird Peter Arment Okay. Good morning, everyone. Thank you for joining us. My name is Peter Arment. I'm a senior aerospace defense analyst here at Baird. We're delighted to have Honeywell International with us. And with us from Honeywell, we have Ken West, who's the Presiden ...

Core Viewpoint - Activist investor Elliott Investment Management LP is advocating for Honeywell International Inc. to spin off its Aerospace Technologies business, arguing that this separation could enhance performance and shareholder value [1][2][10]. Spin-Off Proposal - Elliott proposes that Honeywell be divided into two independent entities: one focused on automation, energy, and sustainability solutions, and the other on aerospace [2][10]. - The separation is expected to create two sector-leading companies, potentially increasing Honeywell's share price by 51% to 75% over the next two years [3][10]. Financial Performance and Market Position - Honeywell's Aerospace segment generated $13.6 billion in sales in 2023, accounting for approximately 37% of total revenue [8]. - The Aerospace division has experienced stagnant sales with a compound annual growth rate (CAGR) of -0.58% from 2018 to 2023, and margins have remained around 28% [9][10]. - Challenges such as supply chain disruptions and geopolitical tensions have impacted the Aerospace segment's performance [9]. Business Structure Post-Separation - Post-separation, the Aerospace business (SpinCo) will focus on products and services including auxiliary power units, propulsion engines, and integrated avionics [4][12]. - The remaining Honeywell (RemainCo) will concentrate on automation and energy transition, structured into three segments: industrial automation, building automation, and energy and sustainability solutions [5][11]. Management Response - Honeywell's management has acknowledged Elliott's views and expressed willingness to discuss the matter further, indicating that they had not been contacted prior to Elliott's letter [6].

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

KEY TAKEAWAYSHoneywell International shares jumped Tuesday to an all-time high, after Elliott Investment Management said it has built a $5 billion-plus position in the industrials conglomerate and is seeking a breakup of the company.Elliott said in a statement that it had sent a letter to Honeywell's board of directors seeking separations of the aerospace and automation businesses as standalone companies.General Electric's three-way split earlier this year has resulted in shares of the companies spun off su ...

The Honeywell International sign sits outside of the company's former global headquarters in Morristown, New Jersey.Activist investor Elliott Management has a $5 billion-plus stake in Honeywell, and it is pushing the industrial conglomerate to break itself up into two companies.Elliott believes that Honeywell should divide itself along its two primary business lines — Aerospace, which supplies engines and avionics to the military and commercial users, and Automation,  which is a supplier of sensors and cont ...

Core Viewpoint - Honeywell is facing challenges due to its conglomerate structure, which has led to inconsistent financial results and an underperforming share price, prompting a call for simplification through the separation of its Aerospace and Automation divisions [1][7][30]. Group 1: Investment Opportunity - Elliott Investment Management has invested over $5 billion in Honeywell, becoming its largest active investor, and believes there is a significant opportunity for value creation through a separation of its business units [5][64]. - A separation could lead to share price gains of 51% to 75% over the next two years, reflecting the potential for improved operational performance and valuation for both Aerospace and Automation as standalone entities [4][80]. Group 2: Current Performance and Challenges - Honeywell has experienced uneven execution and inconsistent financial results over the past five years, resulting in a decline in its share price and overall underperformance compared to peers [7][23][26]. - The conglomerate structure has led to operational challenges, with smaller business units lacking management attention and larger units competing for investment, hindering overall performance [37][41]. Group 3: Benefits of Simplification - Separating into two independent companies would allow for enhanced strategic focus, improved capital allocation, and better operational performance, as evidenced by other companies that have successfully simplified their structures [3][35][36]. - A simplified investment narrative would likely attract more investor interest, as the current conglomerate model is viewed as less attractive compared to pure-play companies [54][56]. Group 4: Market Position and Valuation - Honeywell Aerospace is positioned as a top-five global aerospace supplier with strong aftermarket revenue, while Honeywell Automation is expected to be a significant player in the automation sector, with nearly $20 billion in annual revenue [64][70]. - Despite its strong market position, Honeywell currently trades at a discount compared to its peers, indicating a disconnect between its operational capabilities and market valuation [26][58]. Group 5: Path Forward - The recommendation is for Honeywell to pursue a separation of its Aerospace and Automation divisions to unlock value and improve operational focus, aligning with market trends favoring simplified business structures [84][85]. - The current market environment presents a favorable opportunity for such a separation, as investor preferences have shifted towards pure-play companies that can deliver better performance and returns [68][69].

HYDERABAD, India, Nov. 6, 2024 /PRNewswire/ -- Cyient DLM, an integrated partner for design-led manufacturing, announced its partnership with Honeywell Aerospace Technologies for the ground-breaking micro vapor cycle system (Micro VCS), aimed to revolutionize aircraft cooling technology. Cyient DLM has inked a 16-year program forecast to develop liquid cooling loops that will be used in select applications of Micro VCS.Micro VCS is poised to redefine cabin temperature control. Crafted meticulously while pri ...

The stock price of industrial conglomerate Honeywell International Inc. (NASDAQ: HON ) crashed after the presentation of 3Q24 earnings as the company’s outlook was lowered and the Industrial Automation segment disappointed.A financial researcher and avid investor with a keen eye for innovation and disruption, as well as growth buy-outs and value stocks. Keeping an eye on the pace of high tech and early growth companies, I write about current events and the biggest news surrounding the industry, and strive t ...