Zinger Key Points
- Honeywell advances portfolio review, exploring strategic alternatives like a potential Aerospace business separation.
- Updates on the review will be shared with the Q4 2024 earnings release; Elliott Investment Management voices support.
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Honeywell International Inc. HON shares are trading higher premarket on Monday. The company disclosed that its Board of Directors is advancing a comprehensive business portfolio evaluation initiated earlier this year by Chairman and CEO Vimal Kapur.
The review includes exploring strategic alternatives, such as a potential separation of its Aerospace business.
Honeywell plans to share updates with its fourth-quarter 2024 earnings release.
Vimal Kapur said, “Since aligning our business this past January to three compelling megatrends – Automation, the Future of Aviation and Energy Transition – we have been moving swiftly and decisively to optimize the Honeywell portfolio to deliver superior growth and drive incremental shareholder value. At the same time, we have been evaluating more transformational changes.”
“Following the portfolio enhancements announced earlier this year, Honeywell is now well-positioned for significant transformational alternatives, and we are continuing our deeper, more granular exploration of their feasibility and possible timing,” Kapur added.
In response, Elliott Investment Management expressed support for Honeywell’s ongoing review of strategic alternatives, including a potential Aerospace business separation.
Elliott said it looks forward to the review’s completion and supporting the company in executing steps to unlock its full value.
Last month, Honeywell announced a plan to spin off its Advanced Materials business into an independent, U.S. publicly traded company, which is targeted to be completed by the end of 2025 or early 2026.
Also, the company agreed to sell its Personal Protective Equipment (PPE) business to Protective Industrial Products, Inc. (PIP) for $1.325 billion in an all-cash deal.
Honeywell held cash and equivalents of about $10.6 billion as of September 30, 2024.
Investors can gain exposure to the stock via Gabelli Commercial Aerospace and Defense ETF GCAD and Amplify CWP Enhanced Dividend Income ETF DIVO.
Price Action: HON shares are up 3.47% at $235.51 premarket at the last check Monday.
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