- 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 (www.honeywell.com) is a technology company that
delivers industry specific solutions that include aerospace
products and services; control technologies for buildings and
industry; and performance materials globally. Our technologies help
everything from aircraft, buildings, manufacturing plants, supply
chains, and workers become more connected to make our world
smarter, safer, and more sustainable. For more news and information
on Honeywell, please visit www.honeywell.com/newsroom.
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.
Contacts:
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Media
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Investor
Relations
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Stacey Jones
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Sean Meakim
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(980)
378-6258
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(704)
627-6200
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stacey.jones@honeywell.com
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sean.meakim@honeywell.com
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