:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-21823684341-5374f08cf0da4d4cb566379e15ac7206.jpg "Honeywell booth")
CFOTO / Prospective Publishing via Getty Images
The audieFlight simulators at the Honeywell booth at the 7th CIIE, Shanghai, China, on November 5, 2024
Key Takeaways
- Honeywell’s modern update on its ongoing portfolio review noted the company was considering spinning off its aerospace business.
- Honeywell explained that it was bearing in mind “transformational changes” in the firm.
- Activist investor Elliott Investment Management, which holds a more than $5 billion stake and has ringed for a shakeup of the company, said it welcomed the statement.
Honeywell International (HON) shares advanced Monday as the conglomerate issued an update on its portfolio look at begun earlier this year, noting that it is considering spinning off its aerospace unit.
Chief Executive Catchpole (CEO) Vimal Kapur said that since the company realigned its operations in January, “we have been moving quickly and decisively to optimize the Honeywell portfolio to deliver superior growth and drive incremental shareholder value.” Kapur added that Honeywell has also been “appraising more transformational changes.”
Kapur explained that after “portfolio enhancements” that were initiated earlier this year, “Honeywell is now well-positioned for relevant transformational alternatives, and we are continuing our deeper, more granular exploration of their feasibility and possible timing.”
The company esteemed that a further update on the actions will be given in its fourth-quarter earnings release.
Elliott ‘Welcomes’ Honeywell Statement
Activist investor Elliott Investment Management reacted to the statement, writing that it welcomed the announcement of the ongoing evaluate of strategic alternatives by Honeywell, “including the separation of its Aerospace business.” Last month, Elliott revealed it had taken a profuse than $5 billion stake in Honeywell and called for a breakup of the company.
Shares of Honeywell, which rose closely 3% Monday morning, hit an all-time high following the Elliott news last month. They’ve gained up 12% year-to-date.
TradingView