Useful information
Prime News delivers timely, accurate news and insights on global events, politics, business, and technology
The ‘Round Table of Barron’ panelists react to the experiments of Elon Musk and Jeff Bezos on space trips.
- The industrial and aerospace giant Honeywell said Thursday that it will be divided into three companies that appear independently.
- Honeywell said he will separate his aerospace and automation businesses in separate entities, along with his previously announced spin-off of the Advanced Materials Unit.
- Honeywell said he intends to complete the separation in the second half of 2026, which would be tax free for his shareholders.
Honeywell said Thursday that it will be divided into three companies that quote independently, breaking one of the last United States conglomerates only a few months after the activist investor Elliott Management took a participation of $ 5 billion in the industrial giant.
Honeywell’s shares, however, fell almost 2.5% in trade prior to trade, reverting the course of early profits after the company predicted sales and descending profits by 2025.
The company said it will separate its aerospace and automation businesses in separate entities, along with its previously announced spin-off of the Advanced Materials Unit.
The space race is on: here is who will challenge Spacex
With the decision of Honeywell, the ranks of the main industrial conglomerates of the Nation have decreased even more, after similar options in recent years by 3M, General Electric and United Technologies to divide the important divisions.
The industrial and aerospace giant has been in a spree of agreements under the CEO Vimal Kapur, throwing assets that do not focus on the aviation, automation and energy sectors.
Despite several smaller movements, Elliott, whose participation in Honeywell is its largest individual investment, argued that the company needed to separate.
On September 6, 2016, an aircraft engine was proved at Honeywell Aerospace in Phoenix, Arizona, on September 6, 2016. Honeywell announced that it will be divided into three separate companies. (Reuters/Alwyn Scott/File Photo/Reuters)
Honeywell attracted Elliott’s attention when the price of his shares had a lower market yield. Their shares had increased by 7.7% in 2024 until November 11, one day before Elliott revealed its position, while the broader market had gained 26.6% in the same period.
Analysts had previously estimated that the Honeywell high margin aerospace business could be worth between $ 90 billion and $ 120 billion, including debt.
The airline industry, confronted with the shortage of new jets, has had to resort to old and intensive maintenance aircraft during a travel boom, which increases sales for players such as Honeywell that provide services and pieces of the market of accessories.
The aerospace unit is Honeywell’s largest income generator, which represents approximately 40% of the company’s total income in 2024, and has Boeing and Airbus among its customers. It also has contracts with the United States government, providing communication and navigation systems, among other services.
Honeywell said it will separate its aerospace, automation and advanced materials units in three different entities. (Reuters/Denis Balibouse/File Photo/Reuters)
Honeywell had announced plans to climb his unity of advanced materials in a company that quotes in the stock market in October. He said in December that he was considering a spin -off of his aerospace business, after Elliott’s impulse.
The company said it intends to complete the separation in the second half of 2026, which would be tax free for its shareholders.
Elliott’s push is not the first time that Honeywell faces the activist pressure to break the company. In 2017, he managed to ignore the third point of Daniel Loeb, which urged the company to reject its aerospace division.
Get the Fox business on the fly by clicking here
The industrial giant has been rotting its portfolio through a series of divestments and acquisitions, but such a large break would be the first time for the company of more than 100 years.
Left prognosis a gain adjusted by action between $ 10.10 and $ 10.50 by 2025, below the average estimate of analysts of $ 10.93 according to the data compiled by LSE.
Its sales expectations between $ 39.6 billion and $ 40.6 billion for the year also did not reach the expectations of Wall Street of $ 41.22 billion.
