Honeywell – Honeywell to Realign Portfolio to Three Powerful Megatrends: Automation, Future of Aviation, and Energy Transition

October 10, 2023
Honeywell

  • Entering next phase of transformation with portfolio alignment to critical megatrends
  • Simplified structure enhances innovation playbook, accelerating Honeywell’s organic growth potential
  • Optimized portfolio creates favorable setup for strategic inorganic capital deployment

CHARLOTTE, N.C., Oct. 10, 2023 /PRNewswire/ — Honeywell (NASDAQ: HON) today announced plans to realign its business segments to three compelling megatrends: automation, the future of aviation, and energy transition. This shift within the company’s segments will enable Honeywell to deliver accelerated organic sales growth and inorganic capital deployment, creating greater value for shareholders. The new segmentation will take effect beginning first quarter 2024.

“We are committed to delivering differentiated, profitable growth,” said Honeywell Chief Executive Officer Vimal Kapur. “After a complete review of our portfolio, we plan to organize our businesses around three powerful megatrends, each of which is underpinned by our robust digitalization capabilities and solutions. This simplified structure will enable Honeywell to realize synergies that will accelerate our innovation playbook, leverage our financial strength, and unlock greater value through our Accelerator operating system.

 

“As we enter the next phase of transformation, this realignment will enable us to consistently deliver our upgraded financial algorithm, drive innovation that will help solve the world’s toughest sustainability and digitalization challenges, and deploy capital more effectively.”

 

Aligning Our Segments with Three Compelling Megatrends

The updated reporting structure will include four segments, underpinned by the company’s world-class Accelerator operating system and Honeywell Connected Enterprise integrated software platform, enabling Honeywell to better serve its customers and positioning us to outperform in any environment.

  • Aerospace Technologies (AT): Used in virtually every commercial and defense aircraft platform worldwide, Honeywell aerospace products will continue to lead the future of air travel, including driving advanced air mobility and greater sustainability with the electrification of aircraft.
  • Industrial Automation (IA): With a deep history in industrial automation that spans more than five decades, Honeywell enables process industry operations, creates world-class sensor technologies, automates supply chains, makes warehouses smarter, and improves worker safety. This combination will build on our core strengths in controls and automation technologies, deliver better commercial outcomes for our customers, and enhance our growth.
  • Building Automation (BA): Through hardware, software, sensors, and analytics, Honeywell helps customers convert buildings into integrated, safe, and more sustainable assets. With solutions and services used in more than 10 million buildings worldwide, Building Automation will continue to strengthen Honeywell’s position in attractive end markets like hospitals, airports, education, and data centers.
  • Energy and Sustainability Solutions (ESS): With a decades-long focus on sustainability, Honeywell enables the energy evolution, improves resiliency and efficiency, reduces emissions, and facilitates the circular economy. Honeywell’s expertise in this area will continue helping solve the world’s toughest challenges across our end markets.

New Leaders Appointed for New Business Groups

Effective January 1, 2024, Lucian Boldea will serve as president and CEO of the Industrial Automation segment, and Ken West will serve as president and CEO of the Energy and Sustainability Solutions segment. Both Boldea and West will report to Kapur and serve as company officers.

Billal Hammoud will remain President and CEO of the renamed Building Automation segment, and Jim Currier will remain President and CEO of the renamed Aerospace Technologies segment. Kevin Dehoff will remain President and CEO of Honeywell Connected Enterprise.

 

“Our strategic business group leaders are well-positioned to lead Honeywell in both organic and inorganic growth,” Kapur noted. “They have demonstrated a deep understanding of our customers and end markets and are capable of delivering strong results across our industries. Their combined experience and drive to create value for customers and shareowners position Honeywell well for the future.”

Third Quarter and Full Year Update

Honeywell anticipates strong third-quarter results in line with previously-issued guidance ranges for sales and segment margin, led by strong results in its Aerospace and Performance Materials and Technologies business groups. Earnings per share is expected to be within or above the previously-issued guidance range, and full year results are expected to be within the previously-issued guidance ranges. The company will hold its quarterly earnings announcement on Thursday, October 26, at 8:30 a.m. EDT.

Conference Call Details

Honeywell will discuss the portfolio realignment during an investor conference call starting at 8:30 a.m. Eastern Daylight Time today. A live webcast of the investor call as well as related presentation materials will be available through the Investor Relations section of the company’s website (www.honeywell.com/investor). A replay of the webcast will be available for 30 days following the presentation.

Honeywell uses our website, including our investor relations website, www.honeywell.com/investor, as a means of disclosing information which may be of interest or material to our investors and for complying with disclosure obligations under Regulation FD. Accordingly, investors should monitor our website, in addition to following our press releases, SEC filings, public conference calls, webcasts, and social media. Additional information with respect to matters in this release can be found in the Form 8-K filed with the SEC today.

We describe many of the trends and other factors that drive our business and future results in this release. Such discussions contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act). Forward-looking statements are those that address activities, events, or developments that management intends, expects, projects, believes or anticipates will or may occur in the future. They are based on management’s assumptions and assessments in light of past experience and trends, current economic and industry conditions, expected future developments and other relevant factors. They are not guarantees of future performance, and actual results, developments and business decisions may differ significantly from those envisaged by our forward-looking statements. We do not undertake to update or revise any of our forward-looking statements, except as required by applicable securities law. Our forward-looking statements are also subject to material risks and uncertainties that can affect our performance in both the near- and long-term. In addition, no assurance can be given that any plan, initiative, projection, goal, commitment, expectation, or prospect set forth in this release can or will be achieved. These forward-looking statements should be considered in light of the information included in this release, our Form 10-K and other filings with the Securities and Exchange Commission. Any forward-looking plans described herein are not final and may be modified or abandoned at any time. Expected third quarter 2023 results are subject to change and finalization based on completion of all quarter-end close processes.

We have not completed quarter-end close processes for third quarter 2023, and as a result, we are not able to provide preliminary results, and the final results may vary from the third quarter 2023 guidance included herein. Honeywell undertakes no obligation to update or supplement the information provided herein until the company releases financial statements for the three months ended September 30, 2023. This financial and operational information should not be viewed as a substitute for full financial statements prepared in accordance with GAAP.

 

SourceHoneywell

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More information on Honeywell: See the full profile on EMR Executive Services

More information on Vimal Kapur (Chief Executive Officer, Honeywell): See the full profile on EMR Executive Services

More information on Greg Lewis (Senior Vice President and Chief Financial Officer, Honeywell): See the full profile on EMR Executive Services

 

More information on Honeywell Performance Materials and Technologies (PMT) until 31.12.2023: https://pmt.honeywell.com/us/en + As a global technology leader, the every-day mission of Honeywell Performance Materials & Technologies (PMT) is creating future-forward solutions that change the way the world works. The inventors, chemists and engineers of Honeywell PMT are continually pushing technological frontiers, literally bringing the future forward.

We are uniquely positioned to serve customers worldwide with high-quality performance chemicals and materials, process technologies and automation control. We provide the best and most comprehensive solutions that can help our customers improve operations, reliability and profitability. By supporting the global transition towards renewable energy and a low-carbon economy, we’re accelerating a more sustainable future – and changing the way the world works. 

PMT is primarily made of three business units: Advanced Materials, Process Solutions and UOP. Additionally, we align to the connected enterprise of Connected Industrial, Cybersecurity and Sparta Systems. Last, we are transforming utilities through our Smart Energy business.

More information on Honeywell Industrial Automation Segment (IA) as from 01.01.2024: With a deep history in industrial automation that spans more than five decades, Honeywell enables process industry operations, creates world-class sensor technologies, automates supply chains, makes warehouses smarter, and improves worker safety. This combination build on our core strengths in controls and automation technologies, deliver better commercial outcomes for our customers, and enhance our growth.

More information on Lucian Boldea (President and Chief Executive Officer, Honeywell PMT, Honeywell until 31.12.2023 + President and Chief Executive Officer, Industrial Automation Segment (IA), Honeywell as from 01.01.2024): See the full profile on EMR Executive Services

 

More information on Honeywell Advanced Materials until 31.12.2023: https://advancedmaterials.honeywell.com/us/en + Honeywell Advanced Materials plays a crucial role in advancing industries worldwide through diverse applications, revolutionary inventions, and pioneering technologies. Our science and technology experts create solutions that help solve our customer’s needs today and into the future. 

As part of the Honeywell Performance Materials and Technologies business group, our materials are used in various industrial applications. While these applications are diverse, the consistent theme is the innovation and quality, helping our customers collaborate with their own stakeholders to create new value in their own offerings.

  • The world’s leading businesses and monetary institutions rely on Honeywell’s Authentication Technologies for brand protection, currency and document security needs using a unique portfolio of covert luminescent pigments, chemical taggants and optoelectronic detection systems. Our Lumilux™ fluorescent pigments and industrial luminescent pigments were originally development for authentication applications under the Riedel-de-Haën brand.
  • Under the Riedel-de-Haën Honeywell Fine Chemicals brands, we have produced high purity fine chemicals for over 200 years. Our industrial customers use these products in energy and battery applications and catalysts and catalyst precursors.
  • Honeywell Fine Chemicals has also been supplying flux for brazing aluminum for more than two decades. Our high-quality brazing fluxes, based on Potassium Fluoroaluminate and Cesium Fluoroaluminate, are available in a range of formats, including paints, powders, suspensions, and blends.
  • Performance Additives offer synthetic waxes and polymers under the ACumist®, A-C®, AClyn®, Cohesa®, NduroMatt™, Rheolub® and Titan™ brand names.  Honeywell is one of the world’s leading manufacturers of low-molecular-weight polyethylene waxes for inks, paints, coatings, plastics, adhesives or rubber and asphalt. Our performance additives help improve performance, cost savings, and manufacturing efficiency.
  • Honeywell Electronic Materials is a leading supplier to the worldwide electronics industry, providing critical materials that enhance the performance and productivity of your manufacturing processes. Continuous investment in advanced research, worldwide strategic collaborations, and dedication to working closely with our customers have resulted in our innovative products serving the critical needs of manufacturers in the semiconductor and display industries.
  • Honeywell developed Spectra® fiber, a new type of synthetic yarn, and we were one of the first to offer extended chain, high modulus polyethylene fibers. Spectra advanced fibers and composites are used to protect law enforcement and military personnel, complete deep water installations in the oil and gas industry, and help fishermen secure more prized catches. In addition to Spectra fiber, we manufacture Spectra Shield®, Gold Shield® and Gold Flex® ballistic composite materials. Honeywell maintains an active advanced fibers and composites research and development program to inform the next generation of high-performance materials technology.
  • Through our Solstice® brand of low-global-warming aerosols and performance fluids, we are providing responsible replacements for hydrocarbons, HCFCs and HFCs. Solstice-branded products, used for vapor degreasing, cleaning and industrial aerosols, are based on Honeywell’s hydrofluoroolefin technology, and are designed to help customers lower their carbon footprint without sacrificing end product performance.

More information on Honeywell Energy and Sustainability Solutions Segment (ESS) as from 01.01.2024: With a decades-long focus on sustainability, Honeywell enables the energy evolution, improves resiliency and efficiency, reduces emissions, and facilitates the circular economy. Honeywell’s expertise in this area will continue helping solve the world’s toughest challenges across our end markets.

More information on Ken West (President and Chief Executive Officer, Honeywell Advanced Materials, Honeywell until 31.12.2023 + President and Chief Executive Officer, Energy and Sustainability Solutions Segment (ESS), Honeywell as from 01.01.2024): See the full profile on EMR Executive Services

 

More information on Honeywell Building Technologies (HBT) until 31.12.2023: https://buildings.honeywell.com/us/en/home + Honeywell Building Technologies (HBT) is transforming the way every building operates to help improve the quality of life. We are a leading building controls company with operations in more than 75 countries supported by a global channel partner network. Commercial building owners and operators use our hardware, software and analytics to help create safe, efficient and productive facilities. Our solutions and services are used in more than 10 million buildings worldwide.

More information on Honeywell Building Automation Segment (BA) as from 01.01.2024: Through hardware, software, sensors, and analytics, Honeywell helps customers convert buildings into integrated, safe, and more sustainable assets. With solutions and services used in more than 10 million buildings worldwide, Building Automation will continue to strengthen Honeywell’s position in attractive end markets like hospitals, airports, education, and data centers.

More information on Billal Hammoud (President and Chief Executive Officer, Honeywell Building Technologies (HBT), Honeywell until 31.12.2023 + President and Chief Executive Officer, Building Automation Segment (BA), Honeywell as from 01.01.2024): See the full profile on EMR Executive Services

 

More information on Honeywell Aerospace until 31.12.2023: https://aerospace.honeywell.com/ + Thinkers. Doers. Dreamers. Makers. Since the invention of autopilot in 1914, we’ve been a leader in innovation for the Air Travel industry. Today, thousands of Honeywell products are used in aircraft and airports around the world. We create safer, healthier, more comfortable and sustainable air travel with one of the industry’s broadest and most innovative offering portfolios spanning takeoff to landing.

Honeywell Aerospace serves Airlines & Cargo, Business & General Aviation, Defense, Helicopters, Space and Emerging transportation solutions

  • ~90% of aircraft in the world use Honeywell avionics
  • ~80% of satellites in orbit have Honeywell on board
  • 100K+ auxiliary power units delivered since 1959
  • 72K+ engines delivered since 1959
     

More information on Honeywell Aerospace Technologies Segment (AT) as from 01.01.2024: Used in virtually every commercial and defense aircraft platform worldwide, Honeywell aerospace products will continue to lead the future of air travel, including driving advanced air mobility and greater sustainability with the electrification of aircraft.

More information on Jim Currier (Chief Executive Chief Executive Officer, Honeywell Aerospace, Honeywell until 31.12.2023 + President and Chief Executive Officer, Aerospace Technologies Segment (AT), Honeywell as from 01.01.2024): See the full profile on EMR Executive Services

 

More information on Honeywell Connected Enterprise (HCE) + Honeywell Forge: https://www.honeywell.com/us/en/honeywell-forge + Honeywell Connected Enterprise (HCE) is transforming the way the world works, solving our customers’ toughest challenges through relentless innovation that is grounded in a heritage of invention. Honeywell founded HCE to develop Honeywell Forge, software that securely unites OT and IT data to make better decisions and improve operational performance. We help some of the world’s largest companies transform the way they work. Helping them become more sustainable, more efficient and more cybersecure.

More information on Kevin Dehoff (President and Chief Executive Officer, Honeywell Connected Enterprise (HCE), Honeywell): See the full profile on EMR Executive Services

 

 

 

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